gambling in alberta - Research Services - University of Lethbridge

The main impact of legal gambling on First Nation’s charities is that it facilitates the ongoing
ability of these charities to provide the local services that the five host First Nations are
engaged in. This, in turn, directly or indirectly benefits First Nations’ members. The 5 First
Nations charities have amassed $103.5 million in revenues that have been directed to
proscribed community development initiatives. A significant percentage of the First Nation
casino charities employ First Nations people. Out of the approximately 170 employees, 90%
(155) are believed to be First Nations with a total payroll roughly $3.4 million.
These collective benefits are primarily manifest in terms of enhanced First Nations
infrastructure and community programming, and represent the most important and positive
benefits of legalized gambling in Alberta.
Approximately 350 First Nations individuals are employed at First Nations casinos and casino
charities out of a total of 1,200 employees at an annual estimated payroll of $34.5 million, from
which First Nations employees make ~$10.9 million. These 361 jobs represent jobs that did not
exist prior to the casino openings, although it can be expected that a significant percentage of
these individuals were employed or underemployed prior to their casino employment.
First Nations present lower socio-economic indicators compared to mainstream communities.
This in part led to the decision to alter the provincial gaming model to enable placing casinos in
select reserve communities for the benefit of Alberta’s First Nations. The model is imperfect
and could potentially exacerbate existing regional inequalities. An identified regional variance
exists resulting in First Nations north of Edmonton making per community substantially less in
FNDF disbursements than the southern First Nations. An urban-rural variance is further evident
in that two of the casinos located nearby urban centres are doing quite well compared with
three located away from large urban centres which continue to struggle. Smaller communities
are spending FNDF dollars that southern First Nations may spend on economic development
and business start ups to first improve local conditions. Finally, a host-non-host variance exists
whereby hosts are allocated 81.8% of all gambling revenues assigned for First Nations’ use (45%
of the 55% available).
First Nation problem gambling prevalence rates are significantly and consistently higher than
the general population prevalence rates. There is some evidence of increased rates of problem
gambling from 1993 to 2000 coincident with the significantly increased gambling availability
that occurred in this time period. However, there is some evidence of decreased rates of
problem gambling since 2000, coincident with the same trend that may be occurring in the
general population (despite further significant increases in gambling availability and general
population per capita expenditures during this time period).
With the exception of Enoch, which experienced a quick but brief rise in casino-related crime,
all First Nations reported that crime is not an issue. Fears persist that gambling-related crime
will eventually infiltrate First Nations, although evidence does not suggest this is occurring. All
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