Gaming has been a complex issue that is controlled entirely by the Province of Manitoba. In January of 2000 the Province of Manitoba issued an RFP (Request for Proposals) to all First Nations in Manitoba.

The RFP outlined an expensive and exhaustive process with the goal and objective of developing five small First Nation casinos in Manitoba. Some of the key objectives as stated in the RFP were to:

• Provide revenues to all First Nations in Manitoba,

• Create jobs, and

• Provide economic benefits & opportunities to First Nation people of Manitoba.

Unfortunately, the goals and objectives of the RFP were not attained. Recognizing the deficiencies of the 2000 RFP process the Province and AMC agreed to a Two Member Committee to look at the results of the 2000 Casino RFP initiative. The Two Member Committee’s Report and Recommendations were finalized in October 2003.

On the positive side of the ledger, there are now two First Nation casinos in full operation. The newest Casino to open is the South Beach Casino located at Brokenhead. Seven First Nations in the Southeast Resource Development Council area own the casino. Early reports show that it is doing very well and exceeding its financial projections. Plans for phase two, a Hotel/conference center is underway.

The Aseneskak Casino, located in OCN and owned by seven First Nations in the Swampy Cree area has completed three full years of operation and has turned a profit in their second and third years.

KEY ISSUES & CHALLENGES

The challenge now is for AMC to find further ways of gaining meaningful and profitable access to the gaming industry in Manitoba, so that the main objectives of revenues, jobs and economic benefits & opportunities for all Manitoba First Nations is attained. It is important to note that the issues are all very interrelated, so moving forward on any one issue may have an effect on the other issues. AMC is trying to build in some safeguards to hedge against any possible negative impacts.

The First step is to look at the recommendations of the Two Member Committee report finalized in October 2003. The six recommendations are:

1. To establish a sound Legislative and Regulatory framework for future First Nation casino developments. This recommendation means that Manitoba Lotteries Corporation (MLC) would be replaced by a First Nation Gaming Corporation, as an agent of the province, regarding First Nation gaming activities currently under ‘conduct and management’ by MLC. AMC and the Province have developed an MOU in two phases; with the feasibility phase ready to move forward once formal approvals have been realized by both parties.

2. Based on an independent Market Study undertaken by the Province in cooperation with AMC, explore the possibility of developing one ‘significant’ casino with the profits being shared by all Manitoba First Nations. The recommendation goes on to say that, ‘development of a single significant casino be considered, but there be no additional casino developments until the independent market study determines the limits and strengths of Manitoba’s Gaming Market’. In other words there will be no future casino development if the market study determined the market is saturated. That is the risk Manitoba First Nations are being asked to take. The wording of the RFP to do the Market Study may be acceptable, but the risks of moving forward are very high, especially without a contingency plan. This is one of the major challenges at this point. We informed the Province that an overall market study is too risky and we are looking at alternative means to move this recommendation forward.

3. Soften the requirement to be on reserve.

4. Require support of local municipal council if located off reserve.

5. The process should be inclusive, cooperative and non-competitive, and

6. The maximum total number of slots remains at 1,500 in all First Nation Casinos, pending results of the independent Market analysis.

In addition to the above recommendations and because of the risks associated with them, AMC has been directed to continue working on the following three key areas:

1. Revenue Sharing with the Province of Manitoba. The province has, to date, rejected the idea of discussing Revenue Sharing with First Nations. However, AMC continues to push for this as a key element in the overall gaming discussion. Varying forms of revenue sharing does exist in other provinces in Canada.

2. Discuss and negotiate Gaming jurisdiction with the Federal government through an amendment / exemption to section 207(1)(a) of the Criminal Code. Grand chief White Bird moved a motion at the AFN Assembly earlier this year to have AFN actively involved in the discussions on Gaming Jurisdiction. As a result there was a Gaming meeting in the spring where AFN was to set up a working group or task force to strategically deal with this issue with the Federal government.

3. Compensation for those First Nations who lost significant amount of money under the RFP 2000 process. The Province of Manitoba has rejected the request for compensation. Also, after a few meetings with lawyers who provided a legal opinion on the possibility of suing the provincial government, the effected First Nation proponents, were advised of the statute of limitations that runs out at the end of the 2005 calendar year should they choose this route.