1. Are Ontario Casinos Effective Economic Development Tools? A Brief Summary

2. Study Purpose  The study explored whether or not commercial casinos, serve as an effective economic development tool in the province of Ontario.

3. Methodology  The study uses annual time series data of regional economic indicators to obtain patterns and trends of direct and indirect impacts of casinos Niagara, Windsor and Rama on their respective jurisdictions.  A comparative analysis of all three casinos followed to determine which casinos had a positive impact on their jurisdiction.

4. Regional Economic Indicators Utilized  Total employment  Employment income  Taxes  Housing industry  Local business activity  Commercial properties  Hotel/motel performance  Impact on employment insurance

5. Total Employment – Number of Jobs  All casinos rank within the top 3 employers in their jurisdiction.  Casino Windsor employed the most casino workers in the year 2000.

6. Total Employment– Information/ Culture/ Recreation Industry  All casinos have dramatically increased the number of workers in this industry.  Casino Windsor represented over 50% of the workers in the industry in 2000.  Casino Niagara: 29% Casino Rama: 18%

7. Total Employment – Unemployment Rates  All casinos have assisted in decreasing unemployment in their jurisdictions.  Windsor has had the sharpest decrease in unemployment during the 1990s thanks to Casino Windsor.

8. Employment Income – Wage Rates  Wage rates for all casinos are much higher than for other sales and services jobs within their jurisdictions.  Casino Windsor and Casino Rama provide wages above the national average.

9. Taxes  All three casinos contribute to the province of Ontario through 20% of their gross revenues.  Casino Windsor, being the biggest casino, generated $147 million in 2000

10. Housing Industry  The local housing industries have expanded as a result of the casinos.  The City of Orillia felt the greatest impact as housing sales grew 154% between 1995 and 1998.

11. Local Business Activity - Tourism  All of the casinos have led to increased tourism  In Orillia, the casino has led to increased tourism by doubling annual tourism spending by $84 million.  In Niagara Falls, the casino and its tourists have generated $1.3 billion in new economic activity in Ontario.

12. Local Business Activity – Total Building Permits  The opening of the casinos has led to increased local business activity and spending and an increase in building permits.  Even though Windsor has had the most building permits, the rate of increase in Niagara Falls for permits has been the sharpest since the opening of the casino.

13. Commercial Properties  Retail and restaurant sales and commercial building permits have increased since the opening of the casinos.  Windsor has issued the most permits and has had the highest rate of increase. Their retail sales are 33% higher than the national average.

14. Hotel/ Motel Performance  The casinos have led to the expansion of the hotel/ motel industry.  In the year 2000, Windsor had the highest room occupancy rate at 66% and Niagara Falls led in room revenues at $285 million.

15. Impact on Employment Insurance  The new jobs created by the casinos have lowered the amount of employment insurance cases.  Casino Rama has had the most direct impact as there have been 100 cases coming off the welfare program with 50 cases receiving top up to their social assistance allowance because of employment opportunities provided by Rama.  Casino Niagara has assisted in decreasing the amount of employment insurance gross payouts from $187 million in 1991 to $98 million in 1999.

16. Conclusion  Commercial casinos serve as an effective economic development tool for their host municipalities and for their region.  All three casinos have provided positive benefits and have led to a substantial level of economic development and increases in economic activity.

17. What can be concluded from the findings?  More commercial casinos should be established in Ontario, as an economic development tool.  Casinos are superior development tools for stagnant or declining economic areas.  In recessionary periods, casinos provide for key industries to rebound and stimulate the economy.

18. Commercial Focus Advisory Services provides specialized expertise.  We understand the business of economic development.  We provide specialized expertise and strategic services from Resort feasibility studies, to Economic development evaluation to advisory services to the Hospitality Industry.

19. Stephen I. Fagyas, M.A., M.C.I.P. / Mariusz Jastrzebski, B.U.R.Pl. Tel: (416-712-9309) Fax: (416-972-9588) Email: sifagyas@aol.comsifagyas@aol.com 69 Yorkville Avenue, Suite 400, Toronto, Ontario, Canada, M5R 1B8. For interested investors, a detailed analysis of findings is available upon request please contact: