gambling in alberta - Research Services - University of Lethbridge

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A four-pillar approach to community development had been adopted: (1) housing and infrastructure; (2) the elders; (3) health and education; and, (4) all other projects. Originally believed to need more than 175 employees, this number rose to more than 200 with a total payroll of $7.4 million (Whitecourt Star, 2008). The hope was that 70% of employees would be Aboriginal. Local employees and subcontractors were utilized where possible and the casino’s annual economic impact was projected at $34.2 million (Whitecourt Star, 2006). The Alexis Nakota Sioux Nation casino was expected to generate more than $4 million in employment; $5 million in charitable funding; and $17 million annually paid directly to the First Nation (Ohler 2007). Whitecourt officials were anticipating a $4.2 million annual windfall from casino operations. The Alberta Lottery Fund was expected to receive $9 million annually with $3 million going to the FNDF. The full-service truck stop and a 106-room Marriott Fairfield Inn were set for construction within a year of the casino opening, which has not occurred. Noting that most casino projects need a population base of 45,000 to succeed, and that the regional populations barely meet that number, the viability of the project was based on the fact that a daily average of roughly 16,000 motorists drove past the proposed casino site. Actual Impacts Like the Enoch Cree, the Alexis Nakota Sioux Nation is required to pay back investor debt that is non-gaming related. Since the FNDF is lost to community programs until the project development debt is paid off, the Northern Isga Foundation provided the bulk of local project funding. To date 10 houses have been built, reducing by a small proportion the need for approximately 400. Since January 2008, the Charity (the community’s only sources of gamblingrelated income) has funded $1.5 million worth of community activities and projects. During casino construction an estimated $1-million infrastructure was established anticipating hotel construction, which is depreciating and deteriorating daily. The difficulty in attracting an hotelier arose from a proviso in the original agreement with Marriott indicating that after 20 years operations, the hotel reverts to Alexis Nakota Sioux Nation’s ownership. Three years into casino operations, few hoteliers have expressed an interest in investing knowing that they will lose controlling interest in 17 years. The lost hotel and employment revenues are at this point incalculable. The enhanced policing agreement assigning two officers to the Whitecourt RCMP costs the Alexis Nakota Sioux Nation approximately $130,000 each/annually. Local officials indicate that these additional officers are utilizing only a portion of their time dealing with casino-related issues, a time commitment pegged at 25% including patrol time to the casino and administration. The Town of Whitecourt is benefitting from the enhanced policing by 1½ police officers cost-free. The First Nation has no say over the police purchased for the casino, where they are considered municipal members under the control of the staff sergeant. Paragon Gaming pays in perpetuity $90,000 annually for fire and ambulance services for the casino site. 250
With the exception of 2006-2007, the Alexis Nakota Sioux Nation has not received FNDF revenues, other than what has been withdrawn to pay off its existing debt to Paragon. The recent economic downturn has also been problematic. Initially more than 200 employees were on the casino payroll; original estimates indicated upwards of 240 employees were required. Layoffs have recently occurred: the casino employs 120 people, 21 from the Alexis Nakota Sioux Nation. Following a strong performance after the casino opening, layoffs and its poor recent economic performance has many community members questioning the casino’s value to the community. Participants were upset at the lack of FNDF-funded local projects whereas others criticized community leaders for their lack of input in casino management, specifically hiring practices, which hurts local employment opportunities. Several focus group participants stated they were concerned with the length of the community’s contract with Paragon. There are clauses in the agreement permitting the First Nation to buy out Paragon, but the return on initial investment is slowing this process. A 4 to 6 year timeline to acquiring controlling interest is currently in place, and appears doable if the regional economy bounces back. The purchase of 10 new houses is a positive sign, and the political relationship with the community of Whitecourt has improved in recent years after townsfolk sponsored two Native fastball community championships. In return, the Alexis Nakota Sioux Nation sponsored the annual party in the park, subsidizing the entertainment costs. Anticipated Impacts Cold Lake: Casino Dene Located across the main grounds from the Cold Lake First Nation, the $11 million stand-alone casino was expected to employ between 80-100 people. Although community officials would not speculate, original estimates suggested the casino would help to reduce the upwards of 90% unemployment rate. Expected to generate an estimated $12 million annually, of which $2.8 million would be directed to the FNDF, community representatives indicated that the casino would add to the already substantial $16 million spent in town by reserve residents (Cold Lake Sun, 2008). The casino was considered complementary to existing reserve businesses it would assist. Actual Impacts The Cold Lake First Nations (CLFN) band council has long focused on economic development to ensure self-sufficiency. The Cold Lake First Nations has 52 companies: 9 joint-venture companies where the band owns 51%; 10 wholly owned companies; and 33 private enterprises (CBC News, 2009). Casino Dene is part of a larger 25-year economic diversification plan. Performing better than originally projected following its September 2007 opening, 80 jobs have 251
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Plant fertilizer 2011 GAMBLING IN A
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Citation Williams, R.J., Belanger,
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AMOUNTS, ORIGINS, AND RECIPIENTS OF
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ABSTRACT At a provincial level, the
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Alberta is estimated to have 3,755,
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than empirical in nature. Thus, the
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While the above described approach
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census. A supplemental Online Gener
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THEORETICAL APPROACH PROBLEMS WITH
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Aside from these practical issues,
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SOUND PRINCIPLES FOR CONDUCTING SOC
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Again, other ways of organizing and
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4. The transfer of wealth and chang
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Compare Changes to those Observed i
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to document prior gambling opportun
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Mid 1700s to late 1800s 1869 - 1892
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Cheating at gambling (Part XXVIII F
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1924 Criminal Code amendment to s.9
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1957 Western Canadian Racing Associ
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1980s There is a major expansion of
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1989 In June the Criminal Code of C
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1997 AGLC allows the number of slot
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2003 Federal agriculture minister m
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HISTORY OF EACH TYPE OF GAMBLING Th
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Number of Live Race Days per Year I
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Table 1: Total Raffle Licences per
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Table 2: Total Pull-Ticket Licences
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Table 3: Total Bingo Licences per Y
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Table 5: Total Bingo Events per Yea
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Table 6: Total Lottery Ticket Retai
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Video Lottery Terminals (VLTs) In A
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Table 8: Total Video Lottery Locati
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1996 Slot machines and electronic h
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The main indices that speak to chan
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Table 12: Total Charitable Casino L
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REGULATORY AND ORGANIZATIONAL HISTO
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HISTORY OF FIRST NATIONS COMMERCIAL
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CURRENT REGULATION, AVAILABILITY, A
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aggregate value of all tickets sold
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ALBERTA GOVERNMENT GAMBLING The Cri
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CASINOS Traditional Casinos Casinos
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percentage of table game revenue re
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Figure 15. Location of Current and
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HORSE RACING Horse racing is the on
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Bingo Lotteries and Instant Win (Sc
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AMOUNTS, ORIGINS, AND RECIPIENTS OF
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Another way of looking at the overa
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increase has occurred since the ear
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WHERE IS THE MONEY COMING FROM? As
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Figure 20: Proportion of Alberta Ne
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Origin of Net Gambling Revenue by D
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Table 18: Past Year Gambling Partic
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EGM Players Table 20 shows reasonab
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Table 21: Percentage of Each Type o
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winsorized then 75% of reported exp
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Table 22a: Demographic Profile of t
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patronage and revenue. Attendance f
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However, less important than the ac
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Because of the paramount importance
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Actual Revenue Another source of da
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Figure 25: Average Ticket Lottery R
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WHERE IS THE MONEY GOING? The final
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industry. The proportion of gamblin
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Table 27: Grants Awarded by Alberta
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since 1999; 47% of all revenue in 2
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IMPACTS OF LEGAL GAMBLING IMPACTS O
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‘addicted to gambling revenue’.
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Several factors influence the perce
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There are also some important lesso
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Figure 30: Proportion of Total Net
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Figure 31: Number of Charities per
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IMPACTS ON SOCIETY The citizens of
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Number of Alberta Gambling Employee
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Table 34: North American Industry C
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Table 35: Importance of Gambling as
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percentage of the population (i.e.,
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Table 37: Household Past Year Repor
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40% 35% 30% 25% 20% 15% 10% 5% 0% F
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Although Albertans are satisfied wi
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A final attitude question asked in
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Figure 41: What sort of overall imp
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Prevalence Problem Gambling and Rel
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Williams & Volberg (2010) also calc
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Features of Problem Gamblers The ty
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significant change in reported casi
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Table 43: Gambling and Problem Gamb
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their shared variance is taken into
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Treatment Numbers and Costs Treatme
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The only readily available figures
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OSB reports there were a total of 7
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Table 49: Consumer Insolvency Rates
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Another approach is to establish th
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that gambling had resulted in separ
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Applying these prevalence rates to
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gambling-related illegal acts and 8
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It is important to remember that th
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Table 52: Criminal Charges Laid by
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early 1990s, that was followed by a
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Table 54: Correlation between Crime
Page 199 and 200: Infrastructure Value The private se
Page 201 and 202: With respect to this first possibil
Page 203 and 204: increase in the comparison periods;
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Page 207 and 208: versus 2.2%). Commercial insolvency
Page 209 and 210: thinking in an interpretative act;
Page 211 and 212: The Edmonton mayor indicated he bel
Page 213 and 214: Several community representatives a
Page 215 and 216: daytime usage ... if it’s shoppin
Page 217 and 218: Increased crime was a related issue
Page 219 and 220: IMPACT ON FIRST NATIONS The impact
Page 221 and 222: Table 59: Use of First Nations Char
Page 223 and 224: Table 60: Distributions to Differen
Page 225 and 226: Table 60 illustrates that the large
Page 227 and 228: McKay, Heart Lake and the Athabasca
Page 229 and 230: Geographical Distribution As seen i
Page 231 and 232: Figure 51: Average Per Community FN
Page 233 and 234: Employment and Income Impacts of Fi
Page 235 and 236: etter skilled individuals in the co
Page 237 and 238: Problem Gambling A recent review of
Page 239 and 240: Table 65: Prevalence of Problem Gam
Page 241 and 242: $500 chip. One municipal official c
Page 243 and 244: Both the increased affluence and th
Page 245 and 246: The Enoch Cree Nation has to pay ba
Page 247 and 248: The fire department also represents
Page 249: chances. One official stated that t
Page 253 and 254: Post-Script: Barriers to Participat
Page 255 and 256: (Indian Act, 1985). The latter coul
Page 257 and 258: SUMMARY Research Approach The prese
Page 259 and 260: 1% (or less) of Alberta GDP since t
Page 261 and 262: can be said of charitable gambling
Page 263 and 264: Because revenue from charity casino
Page 265 and 266: Socioeconomic Inequality Alberta ga
Page 267 and 268: Despite the relatively low rates of
Page 269 and 270: supplies/equipment or to reinvest i
Page 271 and 272: Some of these sentiments tend to su
Page 273 and 274: communities highlight the casinos a
Page 275 and 276: ASSESSMENT OF THE OVERALL IMPACTS O
Page 277 and 278: 2. The economic activity increases
Page 279 and 280: OVERALL SOCIAL IMPACTS Legalized ga
Page 281 and 282: OVERALL IMPACTS At a provincial lev
Page 283 and 284: however, that the potential for bri
Page 285 and 286: REFERENCES Abbott, M.W., Williams,
Page 287 and 288: Centre for Social and Health Outcom
Page 289 and 290: Jackson, D. (2010). VLT critic call
Page 291 and 292: Purdy, C. (2004). Band stakes its f
Page 293 and 294: Walker, D.M. (2008a). Challenges th
Page 295 and 296: 2008 Survey APPENDICES Appendix A:
Page 297 and 298: General Population Targeted INELIGI
Page 299 and 300: are interested in the opinions of b
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PAST YEAR GAMBLING BEHAVIOUR GY1a.
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GY6a. In the past 12 months, how of
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Cash Casino - Red Deer (15) Jackpot
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GY10a. In the past 12 months, how o
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GY14a. In the past 12 months, what
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GP4. CPGI4/PPGM8b. In the past 12 m
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GP11b. In the past 12 months has ga
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GP16a. PPGM8c. In the past 12 month
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The following question only asked o
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TRIANGULATION (ONLINE PANEL ONLY) T
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Exact amount________________ (17) U
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2009 Survey The 2009 survey was als
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C11. Do you have pleasant memories
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SURVEY YEAR 1992 1993 1995 1996 199
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2008 2008 2009 2009 Williams, Belan
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1 Medicine Hat 2 Lethbridge 3 Fort
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8. In the past 12 months, have you
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Appendix F: Alberta’s Economic Re
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7. A thorough due diligence investi
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