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“The fox in the henhouse: perceptions on the establishment of casinos by First

Nations peoples as vehicles to economic security”.

Fall, 2014

Myron King

Introduction

The atmosphere is strikingly upbeat, as you first enter the large main room, filled with video

lottery terminals, card tables, row upon row of slot machines and bar services. The inviting

sounds of winner bells and jackpot sirens immediately fill your ears. Casinorama, located just

North of Toronto in Ontario draws a multitude of visitors seeking their fortunes, or those out to

enjoy an evening with select performing artist attractions from near and far. On the surface,

everything about this casino appears just like any other. But looks can be deceiving and there is

more to realize about Casinorama than initially presented.

Casinorama is one of many new casinos located and run by First Nations. It is like any other

casino with its games of chance, card tables, entertainment and services – but unlike other

casinos in that it is an initiative of one or more First Nations groups with interest in boosting its

economic baseline with a lucrative and recently popularized money-maker. In the latter third of

the 20th

century, casinos amongst other gambling initiatives have become a multi-billion dollar

industry (Campbell, 2003). Recently some First Nations in Canada have pursued increased

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gambling opportunities within their communities (Kelley, 2002) and in the case of Casinorama,

130 First Nations groups actually share in the profits realized from that casino opened up by and

for them.

Historically Speaking

There are some who would say gambling is as old as humans themselves; a part of our culture

and way of life to some extent. Initially frowned upon in Canada mostly as immoral and

problematic – it slowly gained ground through utility and ability to provide monies quickly for

groups seeking funding for various projects, while simultaneously turning a blind eye to, or

redefining outright what it means to experience, gambling problems. For First Nations however,

there was little if any gambling that focused on making vast amounts of money. It was more for

entertainment of value-lesson and provided no significant individual winnings. As time and

circumstances change, so can the perceptions of practices. The sweeping changes that took place

with European colonization and restructuring of North American societies on whole, also

brought along a different way of understanding what gambling was. Gambling went through a

transition phase from being immoral, deceitful behavior into acceptable, responsible practice

within which only people who lacked self-control defined the largest problem with it. Excessive

gambling was transformed from vice to disease (Campbell, 2003). Later, with casinos on Native

land in the U.S. appearing to work well, why could they not work well for First Nations in

Canada too? The perceived success of many American Indian casinos has actually served as a

model for First Nations in Canada to refer to in support of a casino start-up (Kelley, 2002).

While not a part of First Nations Heritage, could they be utilized to help boost the First Nations

wealth? What harm might come to our community through this endeavor? These were now some

of the questions being raised within the Canadian First Nations communities. Casinos are now, in

the eyes of some, the pathway for struggling First Nations communities to become wealthy, self-

sustaining and economically vibrant communities once again. Casinos can bring significant

employment and income gains, increased infrastructure value, and benefits for surrounding

businesses (Belanger et al, 2012, Durell, 2013). A new source of economic wealth like a casino

can also bring new and devastating community problems. Those problems are often brushed

aside or ignored when such a high potential for profits from a casino are calculated and sought.

The provision of and participation in gambling is potentially changing traditional Aboriginal

values and beliefs (Belanger et al, 2012).

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What lays ahead for First Nations communities who want to become economically independent

by way of the casino? Are the problems associated with casino gambling large enough to deter

First Nations from signing on? Studies have noted that indigenous people have some of the

highest rates of problem gambling (Belanger and Williams, 2012). With the very identity and

values of Native communities seemingly under additional threat by the white society originating,

profit-oriented casino initiatives – Is such an undertaking for a Native community worth the

inherent risks?

Gaming for First Nations

The practices inherent in casino gambling - the games and gaming atmosphere and games of

chance themselves are not new for First Nations. Long before Europeans arrived on First Nations

soil, the men and women of First Nations communities were playing games. Gaming has ancient

roots with First Nations, often being a part of stories or rituals that First Nation communities

practiced. Games could often be the focus of a story to pass on a moral lesson, or to show how

wealth was shared more equally in the end by the people playing. Stories involving games were

thus a way of passing down beliefs and values of a culture, with hopes that listeners will treasure

them and continue to pass them on (Linda Smith, 2012). For some First Nations, this historic link

with gaming eases the pressures associated with contemplating setting up a casino on First

Nations land. It can create a level of comfort and familiarity with gaming that can impact on the

decision to accept the casino. For others, the differences between gaming as a traditional practice

or linkage to moral learning, and the reality of negative community effects that may accompany

a casino setup, are too great. These First Nations groups tend to reject casinos and may continue

to do so year after year. In this way there is a struggle often involved with casino setup on First

Nations lands, with one side citing the economic and societal pros it would bring while the other

side standing firmly behind its belief that the negative impacts out-weigh the benefits no matter

which way it is analyzed.

The Positive View

Indeed, it is often the draw of strong and financially lucrative economical benefits which first

bring casinos into the picture for First Nations. Some First Nations groups have struggled many

years with high unemployment, low income and the common problems associated with bleak

economies. Often a casino is seen as the method out of such a wary situation for the struggling

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First Nations community. In parallel to this, First Nation communities see casinos as a stepping

stone to greater circumstance. With a stronger local economy, community infrastructure could be

invested in and local social programs could receive much needed funding, based on local First

Nations decisions by First Nations people. In this way, casinos would be a step in the right

direction for First Nations to become more self-governing. Self-government has been a priority

for First Nations for a very long time, and almost anything that would help a First Nations group

get closer to that goal would be mostly welcomed. Another factor in First Nations considerations

of setting up a casino is how casinos have overall been beneficial to Indian tribes south of the

Canada - United States border. As a model for comparison, Indigenous-based casinos operated

by Indigenous peoples in the United States mostly helped support the argument for casino setup

by First Nations groups on their lands in Canada. In the United States, as it does in Canada,

gaming does have significant indigenous roots by way of rituals and storytelling. Gaming for

U.S. Indian tribes connected the peoples to their communal origins and destiny, had culture

significance, and was often sacred (Luna-Firebaugh and Fox, 2010).

Meanwhile casinos in the U.S. in the last decade alone have catapulted First Nations

economically to wealth they had only imagined previously, with revenues in the billions

nationally. The tribes have used the revenues from gaming for everything from creating jobs to

funding essential services within their communities. Dr. Yale Belanger has written extensively

on the subject of gambling and casinos for First Nations groups, in particular for the province of

Alberta. Of the idea that the U.S. experience has influenced First Nations in Canada, Belanger

says "Gambling profits in American tribal casinos looked so appealing, that suddenly Canada's

Aboriginal leaders were of the opinion that they too could employ these same methods to

generate the wealth they deemed necessary to become self-governing" (Stevens, 2005).

The role of self-government is often intrinsically linked to the question of gambling and casinos

on First Nations land. Revenue generated but not taxed and duly regulated by provincial

government is often at the center of any dispute, with both First Nations and provincial

governments making claims to the rights to govern the territory and especially in respect to

gambling in that territory. One recent dispute led the Alexander First Nation's Chief Raymond

Arcand in Alberta to say unequivocally that Alexander had a right to host gaming operations,

while also lashing out at the government for challenging Alexander to the right. Arcand said

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gaming was an "integral part of his community's heritage", and that Alberta was ignoring

Alexander First Nation's sovereignty (Mathen, 2013). One thing that casino operations would

help is in securing or at the least enhancing First Nation community’s ability to generate much

needed revenue. Revenue generation is vital in that it enhances the financial capacity to operate

as a government. Up until now, First Nations have been organized more for self-management,

than for self-government (Million, 2013). For First Nations communities casinos can effectively

support self-government initiative. Even when operated within a framework of dual First Nations

and provincial government control, casinos could be a positive endeavor. Alberta First Nations

communities overall have benefited from the establishment of casinos on First Nations

territories, while at the same time operating within provincial government legislation. This was

the result of carefully negotiated terms through which the provincial government and First

Nations both benefited from the casino revenues, with the First Nations revenues being further

distributed amongst both casino host First Nations communities and other non casino hosting

First Nations communities.

The Negative

Almost in the same breathe, Belanger has noted the counter-point of accepting casinos on First

Nations lands governed by First Nations peoples, "...self-governance can be a double edged

sword when it comes to casino operations, which bring with them such potentially difficult

issues as problem gambling and the consequent need to develop community-based programs to

deal with concerns resulting from the increased accessibility to gambling" (Stevens, 2005). It is

often the pitfalls of gambling that stands in the way for some First Nations, who realize that the

risk for negative outcomes for their local residents in the way of problem gambling is high given

certain sets of criteria already visibly present in their territory. Criteria such as high

unemployment, increased instance of alcohol abuse and substantial poverty rates tend to

discourage First Nations leaders against increasing gambling accessibility for citizens, even with

the general benefits it could bring to the community economically. The traditional casino model

often does not fit ideally with many First Nations' ways of living and community values. In such

a model, a casino makes high profits from the accumulation of patron spending, while providing

a lesser prize amount to just a few patrons as part of the bait to gain the initial spend. Profits are

then generally owned wholly by the casino and not by those spending within it. There is no

shared benefit to all patrons - rather there is one or two patrons who have benefited greatly, there

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are many who may have spent a little money but are certainly no better economically, and there

are a few patrons who may have spent too much and lost a great deal. The traditional values of a

First Nations community, values such as sharing, equal distribution of wealth, and all benefiting

from the direction, do not match up with the regular casino profit model.

Belanger has also held focus groups on this topic, comprised of First Nations' people living

within communities where a First Nations casino is now located. Concerns were raised regarding

the effects of time spent at casinos on local families, especially youths of such families. Money

being spent at casinos instead of on basic family needs was raised too, and access to alcohol and

gambling in general was considered problematic - especially for those with gambling problems.

Overall it was found that First Nations' focus groups views on the casino setup in their respective

community was generally supportive, with urban-based First Nations participants having a

greater negative view of such a setup than reserve-based First Nations participants (Belanger et

al 2012).

Conclusion

Gaming and gambling have their roots in the history of First Nations peoples, as it does with

non-indigenous peoples. This does not mean however that a pre-determined set of assumptions

regarding gaming and gambling practices can be assumed in the case of First Nations based

casinos. While a similar set of negative outcomes are experienced by First Nations individuals

and non-First Nations individuals, there are other circumstances that may also play a role in the

manifestation of problem gambling that should also be considered. Within First Nations

communities, perceptions of First Nations casino setups are often mixed, but generally

supportive. The main reasons behind this may be attributed to the way First Nations casinos

utilize the revenues generated in particular in Alberta where currently revenues are shared

amongst many First Nations groups. This utility of 'sharing' generated revenue amongst all First

Nations groups tends to be in line with accepted First Nations core values as a whole.

Perceptions of casinos are also influenced by casinos in the U.S., where similar casino setups

have been revitalized and rebuilt into vibrant Indigenous communities by casino generated

profits. The effort towards casino governance within a First Nation community is often indicative

of the larger struggle for self-governance for many First Nations people. Finally, the real and

perceived notions of casino setups on First Nations lands in Canada can also be influenced by the

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extent to which the casino re-invests casino revenue directly into First Nations communities, in

particular in the way of infrastructure and spending on community services. Ultimately, there

remains differing opinions with First Nations groups as to whether a casino should be setup and

used on First Nations land; though it must be recognized that each First Nations community

faces differing circumstances and the final decision should be recognized as theirs to make with

safeguards to ensure the community is the priority.

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References

Belanger, Yale D., Williams, Robert J. & Arthur, Jennifer N. 2012. Assessing the Impact of the Introduction of

Casinos in Two Northern Alberta First Nation Communities. American Review of Canadian Studies 42(1) 1-19.

Belanger, Yale D. & Williams, Robert J. 2012. The First Nations’ Contribution to Alberta’s Charitable Gaming

Model: Assessing the Impacts. Canadian Public Policy – Analyse De Politiques. 38(4) 552-572.

Belanger, Yale D. & Williams, Robert J. 2012. Urban Aboriginal and First Nations perspectives on casinos and the

First Nations gaming industry in Alberta, Canada. International Gambling Studies. 12(1) 129-144.

Campbell, Colin S. & Smith, Garry J. 2003. Gambling in Canada – From Vice to Disease to Responsibility: A

Negotiated History. CBMH/BCHM 20(1) 121-149.

Durell, Michelle. 2013. The Results of On-Reserve Casinos as Sources of Aboriginal Economic Development:

Helpful Intentions with Devastating Drawbacks. The Canadian Journal of Native Studies. 33(1) 17-25.

Kelley, Robin. 2002. First Nations Gambling Policy in Canada. The Journal of Aboriginal Economic Development.

2(2) 31-55.

Luna-Firebaugh, Eileen M. & Fox, Mary Jo Tippeconnic. 2010. The Sharing Tradition: Indian Gaming in Stories

and Modern Life. Wicazo Sa Review. 25(1) 75-86.

Mathen, Carissama. 2013. A Precarious Chancy Situation: Aboriginal Gaming Rights in Canada. University of

British Columbia Law Review.46 Rev 349-395.

Million, Dian. (2013). Critical Issues in Indigenous Studies: Therapeutic Nations: Healing is an Age of Indigenous

Human Rights. Tucson, Arizona. University of Arizona Press.

Smith, Linda Tuhiwai. (2012). Decolonizing Methodologies: Research and Indigenous Peoples. London & New

York. St. Martin’s Press.

Stevens, Rhys. 2005. First Nations Communities and Casino Gaming: Themes, Trends and Ideas. Research Reveals

(Alberta Gaming Research Institute). 5(1) 1-4.