According to a recent report in the Toronto Star, a new casino in the downtown core may not be a profitable endeavour for the city as a whole. Journalist Alan Broadbent outlines all of the potential benefits of the new casino, but states that it may result in even more expenses for local tax payers.
The report goes into detail about the wide range of potential benefits that come along with creating a new casino in Toronto. Creating new jobs and boosting tourism will be a boon for the local economy. Additionally, provincial, municipal and federal government will all share in the casino’s taxes, providing more money for social programs and other community funding initiatives.
However, Broadbent also makes note of the fact that city itself could also lose profits. Should the OLG maintain its current tax rate for local gaming venues, the City of Toronto may only see a small portion of tax revenue from the new casino. As such, federal and provincial programs will see improvement while local community initiatives are left struggling.
In addition, the casino could also bring about other costs for taxpayers. Increased policing and other local services may be required as a result of the new casino in Toronto – and if Toronto does not receive a larger share of the casino’s revenue, tax payers could end up footing the bill.
While Broadbent’s report is purely speculation, it raises some very important points. The fact that Toronto may not profit from the new casino has not previously been presented and it presents some great food for thought on the issue.