The city council in Niagara Falls in Ontario, Canada recently held a special meeting about the Ontario Lottery and Gaming Corporation’s “flawed” process in selecting new operators for Fallsview Casino and Casino Niagara. Niagara Falls Mayor Jim Diodati said the council will explore “all available legal avenues” regarding the issue, and approved a resolution calling for the municipality to “persuade” OLG to “honor the terms and spirit” of the original agreements between the city and OLG. Niagara Region and other 11 municipalities will be asked to support the resolution.
In April, Diodati and Niagara Regional Chairman Alan Caslin sent a joint letter to Finance Minister Charles Sousa asking the OLG to terminate its request for pre-qualifications and request for proposals seeking a new casino operator. The request was denied.
In a series of rallies, politicians, including Diodati, Caslin and MPP Wayne Gates, have voiced their concerns about the process. They cite a third-party study which state 1,400 jobs could be lost as a result of the province’s plans for modernization for Niagara’s two casinos, which employ 4,000 people. The officials said the province’s goal of maximizing provincial revenue would impact the original objectives of Casino Niagara when it opened in 1996–job creation and economic development for the city.
Diodati also stated the OLG “assured” the city it would be included in the process for developing an RFP, but that hasn’t happened. OLG said it will have no further statements about the request process until a winner is selected, expected in summer 2018.
Currently Falls Management Group operates the city’s two casinos on OLG’s behalf. Last year, OLG notified the company its contract would not be extended past its current term, ending July 10, 2019. OLG spokesman Tony Bitonti said no comments can be offered “until we receive and have the opportunity to review the final resolution put forth by council.”
Diodati responded, “You’re never too far down the wrong path to turn around and correct it, and we’re in that situation right now where we have an opportunity to stop a mistake. We won’t stop and we’ve made that clear to OLG. Our focus is on jobs. We can achieve all of our goals if we make sure that employment and revenue go hand in hand, but it can’t be revenue ahead of employment.”
