The Ontario Lottery and Gaming Corporation has issued a new contribution agreement that changes how revenues from slot machines are shared with host municipalities.
The existing agreement shared revenues with the city based on the number of slot machines at the Rideau Carleton Raceway. The city received 5% of the slot revenue on the first 450 machines and 2% of the revenue on the remaining 800 machines.
In 2011, the city received $4.381 million.
The new agreement will share revenues based solely on revenue, not on the number of machines.
The city will receive 5.25% on the first $65 million of net slot revenue, 3.0% on the next $135 million, 2.5% on the next $300 million and 0.5% on any remaining net slot revenue.
Under the new formula, the city can expect to receive $5.6 million for a full year — an increase of $1.3 million over the current base budget of $4.3 million.
The agreement will come into effect on April 1, 2013.