Key Takeaways
- Ontario intends to approve up to three new Niagara casino operators to open new land-based gaming properties in the region.
- The move is part of a wider strategy to develop a competitive casino gaming market in the area, as the government hopes to make Niagara Falls ‘the Las Vegas of the North’.
- Niagara currently hosts two brick-and-mortar casinos, both operated by Mohegan, but wants to attract “world-class” casino giants to the region.
Ontario is looking for up to three new Niagara casino operators to set up shop near the U.S. border as it begins to put its plan to make Niagara Falls ‘the Las Vegas of the North’ into action.
The provincial government announced on Wednesday that Ontario Lottery and Gaming (OLG) formally launched a Call for Investment to bring “experienced, world-class gaming operators” to Niagara to compete with Mohegan’s Fallsview Casino Resort and Casino Niagara.
It is initially looking for a maximum of three new brick-and-mortar Niagara casino operators, with the potential for further expansion after a 10-year fixed term. The ultimate plan is to establish what the government described as “Ontario’s first competitive land-based gaming market” in the Niagara Region.
Interested operators must respond to phase one of the procurement process by Dec. 3, 2026.
The call-out to Niagara casino operators is part of the province’s broader Destination Niagara Strategy to turn the region into “a world-class, year-round destination.” Ontario said the Call for Investment will enable more than $3bn in direct gaming investment, help create more than 10,000 construction jobs, and generate additional taxpayer revenue through entrance fees and private-sector investment.
Ontario lays out tax, investment demands for Niagara casinos
Speaking of entrance fees, Ontario is asking for several things from any casino company interested in establishing a presence in Niagara, near the international border with western New York State:
- Applicants must be “world-class” casino operators
- Each selected company will have to pay a $100m market entrance fee
- Operators will be required to make a minimum total investment of $1.5bn
- Niagara casino operators will pay a gaming tax rate of 9.75% on their revenue
The government said that it established those requirements to focus the expansion on “top-tier” operators, as well as to maintain the public interest and protect taxpayer dollars.
Shortlisted Niagara casino operators will move forward to a competitive process, wherein they will submit detailed proposals for new integrated casino developments.
Mohegan ended Niagara monopoly under government pressure
Ontario has put out the Call for Investment after OLG and Mohegan subsidiary MGE Niagara Entertainment Inc. struck a deal earlier this year to allow the government to hunt for additional casino operators for the Niagara gaming market.
On Aug. 13, Connecticut-based Mohegan and OLG announced that MGE’s current exclusivity rights to the Niagara land-based gaming market would be suspended. That came after strong public comments from Ontario Premier Doug Ford in December 2025.
Mohegan will continue to operate the two existing Niagara casinos, Fallsview and Casino Niagara, under a long-term revenue-share agreement with the properties’ owner OLG. It also operates the licensed PlayFallsview iGaming platform in Ontario’s regulated online gambling market, using the brick-and-mortar brand’s name.
Mohegan executives said on an earnings call that day that it consented to “suspend and potentially terminate” its Niagara casinos exclusivity in exchange for undisclosed financial considerations. The operator earns a service provider fee from its Niagara casinos, rather than a direct revenue cut.
COO Joe Hasson told analysts on Aug. 13 that the company believes the change will ultimately prove to be “a win-win” due to increased tourism and economic benefits.
In Wednesday’s announcement, the province said that the $100m market entrance fee from each new casino operator, as well as expected increased economic activity once the casinos are open, will offset any provincial revenue losses suffered as a result of Mohegan’s exclusivity ending.
In Mohegan’s last earnings update in August, it reported an 11% decline in Niagara casinos revenue year over year for the quarter ended June 30, 2026. Adjusted EBITDA for that business segment dropped 57% and it made a net loss of more than $1.3m.
Which operators currently run land-based casinos in Ontario?
As well as the Mohegan-operated Niagara casinos, Ontario already hosts numerous brick-and-mortar casinos of various sizes and scopes across the province, including:
- Caesars Windsor near the border with Michigan
- Gateway Casinos and Entertainment’s range of 14 properties
- Great Canadian Entertainment’s 12 venues
- Hard Rock Hotel & Casino Ottawa
Several Ontario-licensed online gambling operators, including Bally’s, BetMGM (MGM Resorts International), theScore Bet (PENN Entertainment), and BetRivers (Rush Street Interactive), are owned by companies with deep roots in brick-and-mortar casino gaming that do not currently have a land-based casino presence in the province.
