While Toronto city councillors gear up for a divisive debate about whether to build a new casino downtown, those in nearby Niagara Falls say casinos have been a boon and a burden to their city, depending on who you ask.

With more than 3,000 slot machines, 130 tables and a luxury hotel, the Fallsview Casino cost $1 billion to build and has been open since 2004.

"It creates a lot of jobs directly and indirectly, and those dollars stay here in the community," said Niagara Falls Mayor Jim Diodati.

But tourists aren't the only ones using the casino, said Carol Prentice of Niagara Community Addiction Services.

"There is that correlation between a casino being readily available and people developing (gambling) problems, as a result," said Prentice.

Still, Diodati said it's mainly tourists using the casino and bringing their dollars to the city.

"If your local residents are spending their monthly cheques at the casino, I don't think that's healthy socially," he said.

In Toronto, council voted Wednesday to send a debate on whether to add a new downtown casino to the executive committee, which will study the issue and report back to council at a later date.

Several councillors have suggested that citizens should be allowed to vote on the issue through a referendum.

Toronto held a previous referendum on a new downtown casino in 1997. During that referendum, 72 per cent of voters said "no" to putting a permanent gaming facility within city limits.

The issue has already divided council, with downtown Couns. Adam Vaughan and Mike Layton saying they think a casino will bring far more burdens than benefits.

Meanwhile , Mayor Rob Ford and Coun. Girorgio Mammoliti have said the casino will bring a new and much-needed revenue source to the city.

Should Toronto choose to go ahead with the casino, the Niagara Falls mayor has some advice for the city.

"It's got to be close to your existing hotels and restaurants and entertainment establishments because you want to feed into that market, you don't want to cannibalize it, you want to feed into it," Diodati said.

In Niagara Falls, the casino brings business to the many hotels and restaurants surrounding it, he said.

The Ontario government has already suggested that downtown Toronto would be a good location for a new casino, but has also said it's up to the municipality to make the final decision on the issue.

With files from CTV Toronto's Natalie Johnson