The Ontario Lottery and Gaming Corporation approved a business plan for the casino in Wasaga Beach.
The location near the Highway 26 roundabout was one of four proposed spots for the facility to be built. Gateway Casino and Entertainment officially selected the west-end location back in April.
The site plan for the new casino will still need final approval by the town, but there is nothing to prevent the project from moving forward.
Based on similar gaming facilities in Ontario, the town is estimated to receive between $1.2 and $2.4 million per year under the revenue-sharing agreement.
A spokesperson with Gateway Casino and Entertainment says they hope to break ground sometime in September and expect construction on the casino to take 12 months.
Meanwhile, Gateway Casinos announced layoffs of 65 full-time and five part-time Casino Rama employees.
The B.C. based company agreed to not eliminate jobs for one year after it added the casino - located near Orillia - to its properties last summer.
Unifor says it is outraged by the layoff announcement.
