Ontario First Nation continues legal challenge over casino revenue agreements

The Mississaugas of Scugog Island First Nation (MSIFN) is maintaining legal action against the Ontario government over what it calls “violations” of revenue-sharing agreements, following the City of Pickering’s receipt of nearly CAD 3.8 million (USD 2.7 million) in third-quarter hosting revenue from the Pickering Casino Resort.

MSIFN Chief Kelly LaRocca said the issue centers on how Ontario distributes gaming revenue from new casinos and iGaming operations. “The revenue that Pickering and iGaming generate for the Province of Ontario comes at the direct expense of MSIFN and economic reconciliation,” LaRocca said.

She added that gaming income has been essential to funding the First Nation’s infrastructure, public services, and community programs. “Instead of supporting Indigenous self-governance and reconciliation, the government has chosen to empower national and international corporations to profit at the expense of public good,” she said.

According to MSIFN, the provincial government proceeded with the construction of the Pickering Casino and the introduction of iGaming “without the support of the public or regard for its impact” on the First Nation. The community maintains that these developments breach an existing agreement with Queen’s Park that set terms for casino operations and revenue sharing.

Economic data and regional revenue distribution

The Ontario Lottery and Gaming Corporation (OLG) recently announced that Durham Region’s three casino hosts collectively received over CAD 5.5 million in second-quarter payments for the period covering July 1 to September 30.

Pickering, which hosts the Pickering Casino Resort—the largest facility in the region—earned nearly CAD 3.8 million during the quarter and has received more than CAD 9.2 million so far this year. Since opening in July 2021, Pickering has collected nearly CAD 69 million (USD 49 million) in casino revenue, which the city allocates to local projects.

The Town of Ajax, home to the Ajax Casino and a quarter-horse racetrack, received a third-quarter payment of just over CAD 1 million, bringing its total for the fiscal year to CAD 2,147,674. The Scugog Island First Nation, which hosts the Great Blue Heron Casino, earned CAD 682,605 during the same period and has collected CAD 1,340,365 this fiscal year.

OLG said the payments are determined under a formula in the Municipality Contribution Agreement, which applies a graduated scale based on gaming revenue generated at each casino site across Ontario.

Public opinion and market impact

A Canada Pulse Insights poll commissioned by MSIFN found that 50% of respondents believe Durham Region already has too many casinos. Nearly one in five respondents (19%) said they stopped visiting the Great Blue Heron Casino after the Pickering Casino opened, and that number increased to 31% among residents in Scugog.

LaRocca said the dispute has been costly for both the First Nation and Ontario taxpayers. “The legal argument is clear. The unfairness is clear. The public opinion is clear,” she said. “Yet the province continues to fight us. We are asking for fairness, not a fight – but we will not back down.”