Last month Cavan Monaghan received a gaming payment of $76,188 from OLG for hosting Shorelines Slots at Kawartha Downs between the township and OLG for the three months ending on September 30th. Later that month, the municipality received a letter advising that these payments would be winding up sometime in 2027 in conjunction with the expiration of the Municipal Contribution Agreement (MCA) governing the gaming revenue sharing for operations at this facility.
In the letter, OLG describes the current arrangement at Kawartha Downs as a temporary program. It was launched in 2019 to assist the eligible racetrack facilities whose slot facilities were expected to relocate. Kawartha Downs qualifies for this program because OLG opened a new gaming facility in Peterborough in2018. This temporary agreement, called the Optional Slots at Racetracks Program is scheduled to end on March 31,2026, which coincides with the expiry of the lease agreement for Shorelines Slots at Kawartha Downs. OLG advised that no extension is contemplated and the slot operations will cease on or before that date.
While OLG will no longer be obliged to make payments to Cavan Monaghan once the gaming activities end, they have offered to provide one additional year of funding through the MCA to assist Cavan Monaghan through this transition. The additional payments will be equal to the amount the municipality receives through for the fiscal year 2025-2026, which are projected to be roughly $286,000.
Gaming payments to Cavan Monaghan began in November 1999 and have contributed more than $62 mil-lion to the municipality. In the early years, gaming revenue was applied to the operating expenses of the municipality, effectively reducing the municipal tax rate. In 2012,the municipality became concerned about relying on this external funding source in their budget, and conducted an analysis of the impact of a potential loss of OLG funding on its operations. The following year, Council began to phase out the use of OLG funds for operating and capital expenditures in order to make the municipal finances more sustainable. In 2013, OLG payments were removed as are venue source in the operating budget, and in 2015 they were also removed from the capital budget. Since then, OLG payments have contributed to the Asset Replacement Reserve allocation in the municipal budget. These measures have significantly strengthened the municipality’s financial sustainability.
The municipality has responded to OLG with a letter of advocacy noting the significant implications of this decision on local employment and seeking continued support for harness racing given its importance to the agricultural community. The letter was sent to the Premier, our MPP and the Minister of Agriculture, Food and Rural Affairs. It is unlikely this request will change the decision to close the Shorelines slots operations in Fraserville next spring.