What Happened
Gaming has become one of the most significant sources of economic revenue for Indigenous communities across Canada. Through a series of agreements negotiated with provincial governments, First Nations and other Indigenous groups have secured access to gaming revenues, the right to operate gaming facilities, and in some cases direct involvement in the regulation of gaming activities within their territories.
These agreements are rooted in the constitutional framework that governs the relationship between Indigenous peoples and the Crown. While the Criminal Code of Canada gives provinces the authority to regulate gambling, Indigenous communities have long argued that this authority should be shared, particularly where gaming operations are located on or adjacent to Indigenous lands.
The landscape of Indigenous gaming agreements in Canada is complex and varies significantly from one province to another. Ontario, Saskatchewan, and Alberta have the most established frameworks, each reflecting the unique political, economic, and cultural dynamics of the province and its Indigenous populations.
Ontario: The Ontario First Nations Gaming Revenue Sharing Agreement
Ontario has the most financially significant Indigenous gaming arrangement in Canada. The Ontario First Nations Limited Partnership (OFNLP) was established to distribute gaming revenues to First Nations communities across the province. Under the agreement with the Ontario Lottery and Gaming Corporation (OLG), a share of gaming revenue generated at provincially regulated gaming sites is directed to the OFNLP for distribution among Ontario's 133 First Nations.
The revenue-sharing agreement has been renegotiated several times since its inception. Under the current framework, First Nations communities receive a percentage of net gaming revenues from OLG-operated and OLG-affiliated gaming sites. These funds are distributed through the OFNLP and the Ontario First Nations Sovereign Wealth Limited Partnership.
- Revenue is allocated based on a formula that considers community population and needs
- Funds may be used for community infrastructure, health services, education, and economic development
- The agreement covers revenues from both land-based and, increasingly, online gaming operations
- First Nations communities hosting gaming facilities receive additional site-specific payments
Several First Nations in Ontario also operate their own gaming facilities under arrangements with the provincial government. These include charitable gaming centres and destination casinos operated in partnership with commercial operators and overseen by the AGCO.
Challenges and Ongoing Negotiations
Despite the significant revenues involved, the Ontario model has been subject to criticism from some First Nations leaders who argue that the revenue share does not adequately reflect the contribution of Indigenous communities to the province's gaming industry. Negotiations over the terms of the agreement are ongoing, with calls for a larger share and greater Indigenous involvement in gaming governance.
Saskatchewan: The Saskatchewan Indian Gaming Authority
Saskatchewan has one of the most established Indigenous gaming frameworks in Canada, centred on the Saskatchewan Indian Gaming Authority (SIGA). Established in 1995, SIGA is a First Nations-owned and operated organization that manages casino operations in the province under an agreement with the Government of Saskatchewan.
SIGA operates multiple casinos across Saskatchewan, making it one of the largest First Nations-owned gaming operations in the country. The revenues generated by SIGA casinos are distributed through a formula established in the Gaming Framework Agreement between the Federation of Sovereign Indigenous Nations (FSIN) and the provincial government.
- A portion of net profits goes to the First Nations Trust, which distributes funds to Saskatchewan's 74 First Nations
- A portion goes to the Community Development Corporations in the communities where casinos are located
- The provincial government retains a share that is directed to general revenues
- A percentage is allocated to a fund that supports community development initiatives across the province
The Saskatchewan model is notable for its emphasis on Indigenous ownership and operational control. SIGA's board of directors is composed of representatives nominated by the FSIN, and the organization employs a significant number of Indigenous workers across its casino properties.
The Saskatchewan Indian Gaming Authority has been recognized as a model for Indigenous gaming governance, demonstrating that First Nations-operated casinos can achieve commercial success while maintaining a focus on community benefit and cultural values.
Alberta: The First Nations Gaming Policy
Alberta's approach to Indigenous gaming is governed by the province's First Nations Gaming Policy, which allows First Nations to own and operate casinos on their lands. The policy was introduced in 2001 and has been updated periodically to reflect changing market conditions and community needs.
Under the Alberta model, First Nations that wish to operate a casino must submit a proposal to the Alberta Gaming, Liquor and Cannabis Commission (AGLC). If approved, the First Nation enters into an agreement with the AGLC that governs the terms of operation, including revenue sharing, responsible gambling requirements, and compliance standards.
Several First Nations in Alberta operate casinos under this framework, with revenues directed to community development, social services, and infrastructure projects. The Alberta model gives individual First Nations more direct control over their gaming operations compared to the centralized models used in Ontario and Saskatchewan.
Revenue Distribution and Economic Impact
The economic impact of Indigenous gaming in Alberta extends beyond direct casino revenues. Gaming operations create employment opportunities in communities that often face significant economic challenges, and the associated hospitality and entertainment facilities attract visitors who spend money in local businesses.
However, Alberta's model has also faced challenges. Some communities have struggled with the capital costs of developing and maintaining casino facilities, and the competitive landscape in Alberta's gaming market has intensified with the growth of online gambling options.
Other Provincial Models
Beyond Ontario, Saskatchewan, and Alberta, Indigenous gaming agreements exist in various forms across other provinces. In British Columbia, the British Columbia Lottery Corporation (BCLC) has entered into agreements with several First Nations for the operation of gaming facilities on Indigenous lands. Manitoba has a gaming agreement with its First Nations communities that provides for revenue sharing from gaming operations conducted by the Manitoba Liquor and Lotteries Corporation.
In Atlantic Canada, the scope of Indigenous gaming agreements has been more limited, though there has been growing interest among Mi'kmaq and other Indigenous communities in exploring gaming as an economic development tool.
Why It Matters
Indigenous gaming agreements represent a critical intersection of economic development, self-governance, and federal-provincial-Indigenous relations in Canada. For many First Nations communities, gaming revenues provide essential funding for services and infrastructure that would otherwise be inadequately supported by government transfers.
These agreements also raise important questions about the future of gaming regulation in Canada. As the industry continues to evolve, particularly with the growth of online gaming, Indigenous communities are seeking to ensure that they are not excluded from new revenue opportunities and that their treaty and constitutional rights are respected in the development of new regulatory frameworks.
The success of models like SIGA in Saskatchewan demonstrates that Indigenous-owned and operated gaming enterprises can be commercially viable while delivering meaningful community benefits. These examples serve as reference points for ongoing negotiations in other provinces.
What's Next
Several developments are expected to shape the future of Indigenous gaming in Canada. In Ontario, negotiations over the next phase of the revenue-sharing agreement are anticipated to address the growing contribution of iGaming to provincial gaming revenues and how Indigenous communities will share in this new revenue stream.
At the federal level, discussions about modernizing the Criminal Code provisions related to gambling may provide an opportunity for Indigenous leaders to advocate for a more explicit recognition of Indigenous gaming rights. The Truth and Reconciliation Commission's calls to action, which emphasize economic equity and self-determination, provide a framework for these discussions.
In the near term, several First Nations communities across the country are exploring new gaming ventures, including partnerships with private operators and investments in online gaming technology. These initiatives will test the flexibility of existing provincial frameworks and may prompt regulatory updates in the years ahead.