Manitoba Aboriginal Bands Asking for 12% of Provincial Gaming Revenues
Aboriginal bands in the Canadian province of Manitoba are asking the provincial government for 12% of the annual revenue generated from all sources of legalized gambling in the province, including lotteries. Aboriginal bands say they represent 12% of the population in Manitoba and are entitled to a revenue sharing arrangement in proportion to their population. The provincial government has confirmed that it may consider a revenue sharing arrangement in the future. Aboriginal bands in Manitoba already keep all the profits from casinos on reserves and 90% of the revenues from VLTs located on reserves.
The aboriginal position ignores the fact that there are significant costs associated with the regulation of the gaming industry for the province and significant costs for managing and administering the lotteries. A revenue sharing arrangement based on population would mean that aboriginal groups would in effect receive a much greater percentage, likely closer to 18%.
The province is also considering permitting the establishment of a provincial aboriginal gaming commission that would oversee regulation of the gambling industry for on-reserve gambling.
