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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CASINOS<br />
Traditional Cas<strong>in</strong>os<br />
Cas<strong>in</strong>os <strong>in</strong> Alberta are def<strong>in</strong>ed as establishments that provide both EGMs (slot mach<strong>in</strong>es) plus<br />
table games. The particular types <strong>of</strong> cas<strong>in</strong>o table games <strong>of</strong>fered depends on the cas<strong>in</strong>o but may<br />
<strong>in</strong>clude roulette, blackjack, poker, baccarat, red dog, craps, sic-bo, and pai gow tiles. Some<br />
cas<strong>in</strong>os also provide electronic keno. Alberta cas<strong>in</strong>os are subdivided <strong>in</strong>to Traditional Cas<strong>in</strong>os<br />
and First Nations Cas<strong>in</strong>os, with some differences <strong>in</strong> their respective regulatory operation<br />
(described below).<br />
The AGLC licenses both cas<strong>in</strong>os and cas<strong>in</strong>o events. A cas<strong>in</strong>o facility licence costs $500.<br />
Obta<strong>in</strong><strong>in</strong>g a licence for a new cas<strong>in</strong>o facility requires successfully go<strong>in</strong>g through an 8-step<br />
process that demonstrates community support, f<strong>in</strong>ancial viability, and an understand<strong>in</strong>g <strong>of</strong><br />
potential community impacts.<br />
Cas<strong>in</strong>os are owned, operated and staffed by cas<strong>in</strong>o companies, First Nations communities,<br />
and/or private <strong>in</strong>dividuals. All the equipment (other than slot mach<strong>in</strong>es) is also owned by these<br />
companies/bands/<strong>in</strong>dividuals. Cas<strong>in</strong>o owner revenue derives from host<strong>in</strong>g government-owned<br />
slot mach<strong>in</strong>es <strong>in</strong> their venues, from conduct<strong>in</strong>g charity <strong>in</strong>itiated ‘cas<strong>in</strong>o events’, and from food,<br />
dr<strong>in</strong>k and other amenities sold at their facility (e.g., commissions from ATMs).<br />
Charity groups apply to AGLC to hold a ‘cas<strong>in</strong>o event’ at a cas<strong>in</strong>o designated for their region<br />
(Appendix C). This licence is for a s<strong>in</strong>gle event that typically runs for 2 days. The cost <strong>of</strong> the<br />
licence is $15 per table per day (exclud<strong>in</strong>g poker) or $35 per table per day (exclud<strong>in</strong>g poker) at<br />
fairs or exhibitions. As there are more charity applications to hold cas<strong>in</strong>o events than there are<br />
days available for cas<strong>in</strong>os to host cas<strong>in</strong>o events, random draws are held on a regular basis to<br />
determ<strong>in</strong>e which 182 charities will be able to hold cas<strong>in</strong>o events at that cas<strong>in</strong>o that year, and<br />
which particular days each event will be held. (In 2009 the wait<strong>in</strong>g period to hold a cas<strong>in</strong>o<br />
event varied from 16 months <strong>in</strong> Fort McMurray and Medic<strong>in</strong>e Hat to 34.5 months <strong>in</strong> <strong>Lethbridge</strong>)<br />
(MLA Advisory Committee, 2010). The cas<strong>in</strong>o owner provides the equipment (other than slots)<br />
and staff to directly run the games (e.g., dealers) and the charity provides volunteers for the<br />
other positions (general manager, banker, cashier, count room supervisor, chip runner, count<br />
room staff).<br />
Net revenue after expenses from table games is pooled and distributed to participat<strong>in</strong>g<br />
charities on a quarterly basis. The cas<strong>in</strong>o owner receives a fixed fee for service (50% <strong>in</strong> Calgary<br />
and Edmonton, 65% <strong>in</strong> St. Albert, 65% outside <strong>of</strong> Edmonton and Calgary with 300-400 slot<br />
mach<strong>in</strong>es, and 75% for those outside Edmonton and Calgary with up to 299 slot mach<strong>in</strong>es).<br />
Cas<strong>in</strong>o owners are also paid 75% <strong>of</strong> the net revenue from craps and poker dealer services. The<br />
Alberta government receives no revenue from cas<strong>in</strong>o table games.<br />
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