gambling in alberta - Research Services - University of Lethbridge
gambling in alberta - Research Services - University of Lethbridge
gambling in alberta - Research Services - University of Lethbridge
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IMPACT ON FIRST NATIONS<br />
The impact <strong>of</strong> <strong>gambl<strong>in</strong>g</strong> on society also speaks to the impact <strong>of</strong> <strong>gambl<strong>in</strong>g</strong> on First Nations with<strong>in</strong><br />
Alberta. The focus <strong>of</strong> the present section is more specifically on the impacts on Alberta First<br />
Nations as a result <strong>of</strong> their foray <strong>in</strong>to commercial <strong>gambl<strong>in</strong>g</strong>. The data used <strong>in</strong> the follow<strong>in</strong>g<br />
analyses were drawn from 2 primary sources: the Alberta Lottery Fund website which lists the<br />
details <strong>of</strong> all First Nations Development Fund (FNDF) disbursements and Alberta Gam<strong>in</strong>g and<br />
Liquor Commission Annual Reports.<br />
First Nations Gambl<strong>in</strong>g Revenue and its Disbursement<br />
Alberta First Nations <strong>gambl<strong>in</strong>g</strong> revenue comes almost exclusively from cas<strong>in</strong>o pr<strong>of</strong>its from the 5<br />
First Nation cas<strong>in</strong>os (these cas<strong>in</strong>os listed <strong>in</strong> Table 15, p. 86). One revenue stream is from the<br />
commission paid to the cas<strong>in</strong>o owner who provides the venue for the cont<strong>in</strong>uous ‘charity cas<strong>in</strong>o<br />
event’ (i.e., 50% to 75% <strong>of</strong> table game revenue, 15% <strong>of</strong> slot mach<strong>in</strong>e revenue, and 5% <strong>of</strong> keno<br />
revenue (Figure 14, p. 84). Bands have sole ownership <strong>of</strong> their respective cas<strong>in</strong>o. However<br />
AGLC requires that First Nations engage third-party managers to run the day-to-day operations.<br />
Thus, the revenue stream that goes to the owner is shared with this commercial partner, as per<br />
these agreements. A second revenue stream is from the commission paid to the local First<br />
Nation ‘charity’ (listed <strong>in</strong> Table 14, p. 82) for host<strong>in</strong>g the year-round cas<strong>in</strong>o event (i.e., 25% to<br />
50% <strong>of</strong> table game revenue, 15% <strong>of</strong> slot mach<strong>in</strong>e revenue, and 5% <strong>of</strong> keno revenue). Both <strong>of</strong><br />
these revenue streams are for the exclusive benefit <strong>of</strong> the 5 First Nations with cas<strong>in</strong>os. The<br />
third revenue stream is from the 40% <strong>of</strong> slot revenue that goes to the First Nations<br />
Development Fund that Alberta First Nation tribes can apply to for community development<br />
grants. Seventy five percent <strong>of</strong> this grant money is reserved for the 5 cas<strong>in</strong>o host bands, and<br />
25% is reserved for the 39 non-cas<strong>in</strong>o bands.<br />
Charitable Gambl<strong>in</strong>g Revenue<br />
Figure 44 illustrates First Nations charitable <strong>gambl<strong>in</strong>g</strong> revenue as a function <strong>of</strong> host cas<strong>in</strong>o.<br />
These are estimates based on the per-community proportion<strong>in</strong>g <strong>of</strong> First Nations Development<br />
Fund disbursements, which are a direct function <strong>of</strong> slot mach<strong>in</strong>e revenue for each cas<strong>in</strong>o.<br />
These same proportions are then applied to the table game and keno charitable revenue for all<br />
5 communities comb<strong>in</strong>ed (from AGLC Charity Gam<strong>in</strong>g Annual Reports). As can be seen, the<br />
charitable <strong>gambl<strong>in</strong>g</strong> revenue <strong>of</strong> the River Cree Cas<strong>in</strong>o (Enoch Cree) and the Grey Eagle Cas<strong>in</strong>o<br />
(Tsuu T’<strong>in</strong>a) far surpasses those <strong>of</strong> the other 3 First Nations cas<strong>in</strong>os. In total First Nations<br />
charitable <strong>gambl<strong>in</strong>g</strong> revenue totalled approximately $5,333,000 <strong>in</strong> 2006-2007, $29,719,000 <strong>in</strong><br />
fiscal 2007/8, $53,370,000 <strong>in</strong> 2008/9, and $53,773,000 <strong>in</strong> 2009/10. The total proportion <strong>of</strong><br />
charitable <strong>gambl<strong>in</strong>g</strong> revenue derived from each game type <strong>in</strong> this time period is approximately<br />
73.3% from slot mach<strong>in</strong>es, 26.7% from table games, and .01% from keno.<br />
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