The casino sector is a vital part of the country’s tourism trade, and it significantly contributes to the prosperity that fuels the societal and economic growth in the country. Despite facing the most severe financial crisis in modern times, Ontario’s gaming staff were still functional in generating substantial revenues, in the hundreds of millions, for the Ontario Lottery and Gaming Corporation (OLG). A considerable portion of this income, nearly 50%, was produced by the casinos located in Niagara.
Niagara Falls mayor fears Toronto’s mega casino might erode Niagara’s market share
The announcement of a CAD$1 billion Las Vegas inspired grand casino in Toronto has sparked quite a buzz. Positioned to become Canada’s premier resort destination, it is being regarded as a “global tier” experience to Ontario.
As confirmed by the Ontario Lottery and Gaming Corporation, this forthcoming entertainment hub in Toronto will be the most significant of its kind in the province. Managed by the renowned Great Canadian Entertainment and bearing the name “Great Canadian Casino Resort Toronto”, it is due to open its doors in the summer of 2023.
However, this grand venture does not sit well with everyone. Niagara Falls Mayor Jim Diodati, in particular, is skeptical about this news
Diodati worries that this new casino could have a cannibalistic effect on the province’s existing gaming venues, potentially impacting Niagara Falls’ own duo of casinos unfavorably.
A Gamble: How Casinos Impact Niagara’s Housing Market
Vanessa Marie Parker, a casino worker near Niagara Falls witnessed first hand the potential adverse effects a casino can inflict upon a local community
In June 2005, a report by the Center for Governmental Research painted a dark picture of casino gambling’s effects on local economies. The study discovered that casinos have a myriad of impacts, both positive and negative, that do not confine themselves to the casino premises but spread into surrounding communities.
According to the study, while some areas witnessed a surge in property values, many also saw a rise in bankruptcies and instances of violence.
Parker, now pursuing a new career path, still recalls her days working at a casino. Despite being surrounded by other gaming establishments, she noted that the area showed minimal improvement over time. Gambling has ventured out quite far over the years, from local Casinos, moving onto online casinos, that allow users to place bets immediately in Real time with live Video hosts. Thus allowing users to play a variety of all online gambling games such as roulette, blackjack, slots, or play crash at Thunderpick. These endless games allow local citizens to place online bets without any cap limits.
“Casinos indeed generate employment opportunities,” she admitted, referring to the Seneca Niagara Casino which drew in professionals from gambling hubs like Atlantic City and Las Vegas. This influx of workers necessitated an expansion in housing facilities. “However,” she added, “it’s worth noting that the casino industry is quite transient by nature.”
According to Parker, the high-income employees, who played noteworthy roles in the hiring and training processes during the establishment of the casino, did not stick around for long once the initial setup phase was over. This dynamic nature of the casino industry and its potential impacts are worth considering when assessing its overall influence on the local community.
The prospect of a casino in the Greater Toronto Area (GTA) has sparked a debate among various factions, many of whom fear that the move could lead to a drop in surrounding property values. The empirical evidence accumulated thus far, though limited, does not seem to support this concern.
A study was conducted to understand the impact of urban casinos in Canada on nearby neighborhoods. The researchers drew a statistical analysis looking at the 5-year growth in average housing value (the dependent variable, or DV) in relation to the proximity of the houses to a casino, for casinos developed between 1986-.2007.
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The study concluded that casino openings did not seem to have a notable impact on population growth, demographics, and home ownership rates within the first five years of their opening However, there is some evidence suggesting that they can have negative effects on the housing market It is worth noting that while certain models show these trends, there may be a lack of statistical evidence in some cases.
Based on a handful of scholarly studies, the consensus appears to be that casinos exert a positive influence on both residential and commercial real estate values. In fact, they tend to stimulate growth rather than suppress it.
Phipps in 2004 conducted research specifically focusing on the Windsor, Ontario market, and observed the real estate trends before and after the advent of casinos. Interestingly, Phipps’ findings did not suggest any negative changes to the housing market following the introduction of casinos. On the flip side, there were no significant positive shifts either. Hence, while the alarm bells may not need to ring just yet, the scales are not tipping notably in favor of the casinos either.
Niagara’s Housing Market stays afloat in 2023
While numerous real estate markets nationwide deal with a low housing supply, the outlook appears quite promising in the Niagara region, despite fears of casinos negatively impacting the house market. According to real estate experts, Niagara has shifted towards a buyer friendly market by earning a top spot among Canada’s best markets. Niagara stands at a Sales to New Listings Ratio (SNLR) of 42 percent, reflecting a balanced housing market. This figure marks an almost 50 percent decline from the previous year, 2022, emphasizing the significant shift the region has undergone. Studies to support the positive impact of casinos on the housing market remain limited making the effect of casinos on the housing market a gamble waiting to be played.
