Casino Rama in Ontario, Canada is the largest aboriginal (First Nations) casino in the country and the only First Nations commercial casino. Under an agreement due to expire in 2011, some aboriginal communities receive a share of the gaming revenue and this week after three years of negotiations a deal has been struck that should double their income.

The casino, with over 2,500 slot machines, 110 gaming tables, 9 restaurants, hotel and spa, is operated by Penn National Gaming under the auspices of the Ontario Lottery and Gaming Corporation. It is the biggest single site employer of First Nations people in Canada. Originally fourteen First Nations submitted site proposals for a casino in February 1994 and in December that year the Mnjikaning First Nation (MFN) location was selected.

Casino Rama opened in August 1996. The same year a new Ontario government reneged on a commitment from the previous government that Ontario would not impose tax on the First Nations casino and announced that it would take 20% of gross revenue. In July 1998 a Statement of Claim was filed to recover the money from the government.

For the first five years of operation MFN, the host community, was entitled to 35% of net casino revenue, the rest being distributed equally amongst the other 133 First Nations in Ontario. After that all the net revenue was to be distributed, with 50% allocated according to the population of the community, 40% shared equally among all communities and 10% set aside for remote communities. The distributions had to be spent on education, health, cultural development, community development and economic development.

Under the agreement reached this week the Chiefs of Ontario will abandon their lawsuit and in 2011 give up their rights to casino revenue. In return they will get a 1.7% share of revenue from provincial lotteries and casinos and an immediate payment of C$201 million. The deal should double their present annual revenue share of around C$60 million and is expected to provide over C$3 billion over 25 years.

Unlike under the previous arrangement, First Nations now will be able to decide for themselves how to spend the money. School improvements, housing projects and job training, as well as investment in health care and infrastructure, may lead to further economic benefits for the communities. The deal should also provide long-term stability for the next 25 years and assist in providing better living conditions for First Nations. (E-02.08.08)

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