Welcome to AMMSA.COM, the news archive website for our family of Indigenous news publications.

Alberta chiefs reviewing distribution of casino revenue

Article Origin

Author

By Shari Narine Sweetgrass Contributing Editor EDMONTON

Volume

19

Issue

1

Year

2011

An independent report on gaming in Alberta is recommending a dramatic decrease in the dollars that come from slot machines on First Nations and are handed over to the Alberta Lottery Fund.

“The most uncontentious adjustment would be to redirect the 30 per cent of First Nations slot machine revenue that currently goes to the Alberta Lottery Fund back into the First Nations Development Fund for the use of First Nations communities that do not currently host casinos,” is one of six recommendations presented in Gambling in Alberta: History, Current Status, and Socioeconomic Impacts.

The report was commissioned by the Alberta Gaming Research Institute and presented to the former Aboriginal Relations department and Alberta Gaming and Liquor Commission in April.

The Assembly of Treaty Chiefs is presently reviewing the formula that was established in 2001 before the five First Nations casinos began operating.  Under that policy, 30 per cent of slot revenue is divided between the operator and the First Nation’s registered charity, 30 per cent goes to the Alberta Lottery Fund, and 40 per cent is put into the First Nations Development Fund. The FNDF provides grants to all bands in the province on the basis of 75 per cent distributed among the five casino host bands and 25 per cent reserved for the 39 non-casino bands. Since the first deposit was made to the FNDF in the fiscal year of 2006-2007, the five casino Nations have received $207 million of the $276 million, leaving $69 million to be split between the non-casino bands.

 “There is an ongoing review of the distribution amounts and how it’s calculated,” said Treaty 8 Grand Chief Richard Kappo. He expected the AOTC’s review to be completed in December and then presented at the next AOTC meeting to be held this winter. “Depending on what they come up with in the report, we might look at changing the distribution amount.”

Intergovernmental, International and Aboriginal Relations Minister Cal Dallas said he is willing to meet with First Nations to discuss casino revenue distribution but is “very comfortable with (the present) arrangements” and is not considering changing the formula at this time.

“I guess I would remain to be convinced why would one consider (changing the ALF contribution),” he said.

According to the report, in the last four years, First Nations casinos have contributed 89.3 times more money to the ALF than Aboriginal organizations drew from it in the past decade. In the past year, First Nations casinos put $76 million into the ALF.

Dallas said that revenue earned in First Nations casinos is not derived exclusively from Aboriginal users and revenue pulled in at city casinos is used for programs that serve urban Aboriginal populations.

Dallas also pointed out that the report is one of many that the ministry receives.

“The report essentially was not commissioned by the ministry,” said Dallas. “It’s somebody’s research in respect to a number of options, some of which might be appropriate.”

The Alberta Gaming and Liquor Commission considers academic reports like this one valuable, said spokesperson Jody Korchinski.  The AGLC provides $1.5 million each year to AGRI, which is comprised of the universities of Alberta, Calgary, and Lethbridge with AGRI’s primary purpose to support and promote research into gaming and gambling in Alberta. However, the AGLC did not specifically fund this report.

“We do thoroughly consider academic research…when we’re preparing our business plans and strategies for the year,” said Korchinski, who referred to the report as a “very, very comprehensive document.”

Dr. Yale Belanger, a professor of Native Studies at the University of Lethbridge, co-authored the report, and stands firmly behind the recommendation that First Nations casino contributions to the ALF be pared down significantly.

“Our rationale is very straightforward,” he said.
“Originally the First Nations gaming policy and the approval of the casinos was intended to improve socio-economic outcomes in the communities. With that in mind, it doesn’t seem right that Alberta is skimming 30 per cent of the revenues away just for the purpose of allowing those casinos to operate.”

The report also recommends revisiting how the FNDF is distributed among First Nations as only “a handful of communities have benefited significantly (and) most communities have received very limited benefits.”