OXFORD — A groundbreaking ceremony for a $25 million expansion at Oxford Casino, including a 106-room hotel, took place Tuesday at the hilltop gaming facility on Route 26.

Construction will take place to the left of the existing ground-level casino. The hotel rooms will rise three floors above the present facility and will include additional dining options, an expansion of the gaming floor and flexible meeting and banquet space.

The hotel accommodations will be standard rooms and suites. The project is expected to be finished in 2017.

“We’re delighted to be making this continuing commitment to southern Maine,” said Bill Mudd, president and chief operating officer of Churchill Downs, which owns the resort.

He told a large gathering of invited guests and representatives of state and local government that Churchill Downs has been “a proud operator of Oxford Casino since 2013.” He emphasized that a solid relationship has been established with its host community and he anticipates ongoing success because of the region’s outstanding tourist draw to the lakes and mountains.

Jack Sours, general manager of the Oxford Casino, expressed appreciation to key lawmakers who rallied behind legislative measures required for the facility. He also praised the casino’s 400 employees for their skill and dedication.

One of those employees, Jeremy Callahan, told the ceremony’s attendees that he has worked at Oxford Casino “since a month before day one.” He said he joined Oxford Casino in an entry-level position in 2012 and advanced to his present position as slot machine technical manager.

“I can’t imagine another company that would have given me this opportunity in that amount of time,” he said.

The casino has also brought about increased employment in Oxford and surrounding communities, Callahan said.

Gov. Paul LePage told the gathered officials and guests that Oxford Casino’s investment in Maine in just four years amounts to about $200 million, and “they didn’t ask for anything” to became a major business presence in the state.

LePage pointed out that unemployment was 12 percent in the town of Oxford before the casino came. It’s now 3.4 percent, he said.

It was announced in April that the expansion would create 60 full-time positions and an estimated 1,000 temporary construction jobs.

In response to a question about the possibility of Oxford Casino becoming a performance venue with headliners of the entertainment world, Sours said, “We haven’t ruled out anything.”

He said, “Everything is relationship-driven.” He noted that the hotel expansion came about because Oxford Casino’s first few years exceeded expectations.

Recognizing that a new hotel on the opposite side of Route 26 facing the casino is set to open this summer, Mudd said, “There is enough business for two hotels.”

About 70 percent of Oxford Casino’s visitors come from southern Maine and the Portland area, Mudd said.

A reception following the groundbreaking ceremony was held in a large white function tent that easily held dozens of dignitaries and attendees for a light lunch at noon. The event went as planned, and the tent was a welcome feature when a downpour occurred about half an hour after the completion of the formal program.

The color guard of the Franco-American War Veterans Post 31 posted the flag at the opening of the event. The national anthem was sung by Kelsey Franklin of Oxford Casino.