gambling in alberta - Research Services - University of Lethbridge

was blamed for another’s gambling losses, which resulted in physical threats. Three men in the
Town of Cold Lake accosted a security guard after suffering losses and being ejected from the
casino.
Anticipated Impacts
Enoch: River Cree Resort
By 2004 Enoch Cree leaders were promoting a $178 million destination-style resort-casino
projected to employ upwards of 1,000 people, or the equivalent of 725 full-time jobs with an
annual payroll of approximately $16 million (Purdy, 2004). Of the 800 jobs anticipated 400
were expected to be in the hotel, 350 in the casino, and 30 in the ice arena (Chalmers, 2006).
Projected to gross $110 million yearly, $34.4 million would enter the Edmonton market through
labour, lottery fund revenues, and vendors and services, and $11.6 million would leave the
greater Edmonton area (Severs, 2004). The First Nation would retain $29 million in economic
benefits annually (Purdy, 2004, D6). Upwards of 90% of the construction costs would remain in
the Edmonton area, generating 865 jobs with a combined payroll of $35 million. The goal was
to hire upwards of 125 First Nations employees (CBC News, 2006). This was needed to offset
the 75% unemployment rate experienced among the 1,000 adult members within the
community (Chalmers, 2006).
One year prior to opening, 4,000 job applications had been submitted, including 400 from the
Enoch community and 1,000 from other First Nations (Chalmers, 2006). The First Nation spent
$600,000 over a 16-month period on life skills and job readiness programs. Another $11 million
was spent improving local infrastructure. The band invested $30 million; roughly 90% of it was
on land for the casino site. It was expected that $50 million in housing, infrastructure, children
and youth programs and programs for drug users, in particular alcohol and methamphetamine
abusers, was needed. The casino was expected to generate $22 million annually for the Alberta
Lottery Fund, $9 million of which would be directed to the FNDF.
Actual Impacts
A large proportion of FNDF revenues have been directed to non-gaming debt repayment.
However, the size of the River Cree Casino & Resort means that in its first year, $15 million was
generated through its charity (this does not include table games and keno revenue). According
to the AGLC revenue distribution flowchart, this number represents 15% of slot revenues
generated at the casino, and suggests that roughly $120 million was spent on slots and table
games at the casino. This figure corresponds to the $30,835,225 FNDF allocation, which should
be double what the charity brings in annually. Since a majority of FNDF revenues are directed
to paying off the non-gaming investor debt, limited revenues have been directed to alternative
economic development initiatives. No information was available concerning charity spending.
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