Niagara Falls Mayor Jim Diodati advocates for a casino market expansion to attract U.S. tourists. (C: Robert Harding / The Canadian Press)

Niagara Falls Mayor Jim Diodati has voiced concerns over the "cannibalization" within Ontario's gaming industry, advocating for a new approach to expand the market rather than divide it further. With Casino Niagara opening in 1996 and significant contributions from Ontario Lottery and Gaming (OLG) exceeding $1.2 billion, Diodati believes it's time to rethink the current model. 

The mayor argues that the current system—with the Ontario government owning casinos and external operators managing them—deters major investments in updates and renovations. He calls for a model similar to Las Vegas, where operators invest in the properties they own to boost economic development.  

In an interview with the Niagara Falls Review, Diodati said: “Gaming is no longer the biggest reason people visit Vegas. They go for entertainment and dining and all the other attractions—and the key is that you use gaming to leverage tourism, so you use gaming to leverage investment and economic development.” 

Diodati stresses the importance of attracting more U.S. tourists to Niagara casinos, noting that a majority of tourism revenues in the area come from across the border, yet the casinos see relatively few American gamblers. He emphasizes that enhancing gaming offerings and promoting the region’s iconic status could stimulate growth and competitiveness. 

“A very small portion of our gamblers at our casinos in Niagara Falls are from the U.S.,” said Diodati, adding Seneca Niagara Resort & Casino across the river in Niagara Falls, N.Y., gives away free drinks to gamblers and allows them to smoke. 

“They do offer things and that’s where the [Alcohol and Gaming Commission of Ontario] I think needs to get engaged. Let’s focus our cannons on the U.S. market. If we do this right, we can draw in the Americans.” 

In response, Niagara Casinos’ president Richard Taylor highlighted over $32 million invested in casino upgrades since 2019, aimed at improving visitor experiences. OLG has also partnered with Mohegan Gaming & Entertainment to foster economic development and job creation in Niagara Falls. With ongoing developments, including a new 5,000-seat entertainment venue, the future looks promising for the region's gaming and tourism industries.