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First Nation leaders reject Ontario's control of provincial gaming revenues

June 19, 2007 - 5:19am | by Anonymous

Chiefs of Ontario press release ...

Ontario First Nations Reject Settlement Offer To A Share Of Provincial Gaming Revenues

TORONTO, June 18 - The First Nations in Ontario today rejected a settlement offer from the Province that would have involved the payment to First Nations of a share of provincial gaming revenues in order to settle disputes related to Casino Rama based on the Province collecting a 20% tax on the Casino Rama gross revenues in breach of promises made at the time Casino Rama was established.

The Province's settlement offer involved the payment of 1.6% of provincial gaming revenues to First Nations that could have amounted to $125 million per year for 20 years. This would amount to an average of less than $1 million annually per First Nation. However, it also involved:

  • Compromising First Nations jurisdiction and sovereignty for generations to come;
  • The First Nations being subject to an array of restrictions covering the use of the funds;
  • The First Nations giving up their interest in Casino Rama, which should generate $10 billion in gross revenues over 20 years; and,
  • Abandoning a lawsuit against the Province under which the First Nations are claiming over $2 billion in connection with Casino Rama.

The First Nations and the Province had signed a non binding Agreement-in-Principle in March 2006 outlining the proposal. However, the proposal that the Province finally presented to the First Nations contained significant provisions and restrictions that were not referred to in the Agreement-in-Principle.

Angus Toulouse, the Ontario Regional Chief, said "We are all extremely disappointed that the Province's proposal was so one-sided and contained provisions that the First Nations could not accept, particularly when these provisions had not been raised at the Agreement-in-Principle stage. As everyone knows, many of our Nations are in dire need of funding to break the cycle of dependence and poverty that plagues them. This seemed like a promising way in which a portion of the needed funding could be provided. However, the province cannot expect the First Nations to agree to unreasonable terms and conditions attached to the receipt of that funding. While the proposal involved a lot of money, there is more at issue than money."

A formal response will be forwarded to the Province that suggests positive next steps and a willingness to reach a suitable and reasonable agreement.

For further information: Pam Hunter, Policy Advisor, (416) 597-1266 Office, (613) 203-3233 Mobile

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From the National Post ....  (another example of biase headlines)

Ont. Natives fold on proposal to share gaming revenues
CanWest News Service - June 18, 2007

TORONTO -- The First Nations in Ontario on Monday rejected an offer from the province to share provincial gaming revenues.

The province had offered to pay 1.6% of its gaming revenues - an amount estimated to have been worth $125-million per year for 20 years.

But when divided among Ontario's 133 aboriginal communities, that would have resulted in an annual payment of less than $1-million per First Nation, the native group said Monday.

Chiefs, who were expected to ratify the proposal on Monday claimed in a prepared statement the deal would only compromise:"First Nations jurisdiction and sovereignty for generations to come.

"We are all extremely disappointed that the province's proposal was so one-sided and contained provisions that the First Nations could not accept, particularly when these provisions had not been raised at the agreement-in-principle stage, " said Angus Toulouse, the Ontario Regional Chief.

The proposed revenue-sharing deal with provincial lotteries and casinos would have doubled the communities' yearly revenue share by providing a percentage of gross revenues from all provincial gaming operations. Native groups currently receive gaming money from the operations of Casino Rama, in Orillia, Ont.

The deal also called for the First Nations to give up their interest in Casino Rama - a proposal they opposed.

The new agreement would have settled a series of lawsuits against the Ontario government that stem from the funding generated by the Orillia casino. A group of Ontario chiefs have challenged a 1996 decision by the former Conservative government that directed a cut of Casino Rama's profits into provincial coffers.

The Casino Rama operation was originally set up so that all revenues went to First Nations.

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