First Nation Vows to Derail Ontario Online Gaming, Sports Betting Market

On April 4, Ontario will be introducing a private online gaming and sports betting market, indicating a shift from prior provincial monopolies which have been prevalent in Canada.

Chief Kelly LaRocca of the Mississaugas of Scugog Island First Nation is depicted in the photo (Jason Liebregts/Metrol). She described Ontario’s upcoming liberalized online gaming market as a “significant danger” to the tribe and called for action to be taken. Approximately 30 operators are preparing to launch in a market which could rapidly become one of the biggest in North America. Vixio GamblingCompliance projects that, due to the population of almost 15 million, the market will make roughly CA$989 million (US$789 million) in gross revenue in its first year, and CA$1.86 billion (US$1.46 billion) by 2026.

First Nation Calls For Action

The Mississaugas of Scugog Island First Nation (MSIFN) operates the Great Blue Heron Casino and Hotel northeast of Toronto. Despite many anticipating the launch of the online gambling website set by the provincial government’s Friday announcement, MSIFN called it a “slap in the face” to Ontario’s First Nations, that “reduces… promises of reconciliation to a joke.” The Nation has threatened to take the government to court to block the introduction of an online gaming market as they feel it is a “real and significant threat” to their nation, culture, and ability to provide services. MSIFN Chief Kelly LaRocca said that if the government does not address the harms they have caused, the nation will “make them accountable, in an election year.”

The underlying tension between provincial governments and First Nations in Canada with regard to gaming is made evident in the response. Unlike the US, which has the Indian Gaming Regulatory Act (IGRA) in place to legalize tribal gaming, in Canada there is no such federal legislation to protect the First Nations gaming rights.

First Nation Gaming Rights

The Indian Gaming Regulatory Act (IGRA) enables Indigenous tribes to administer Class II gaming, such as electronic bingo and card games, in areas permitted by state regulation. For Class III gaming, including casino-style activities, the tribes need to finalise a compact with the governing state. This compact offers protection from any possible expansions of state-sponsored gambling in the future. The Canadian Supreme Court has accepted the concept of tribal sovereignty, which permits Indigenous peoples to express self-governance and to make use of their sovereign land for economic reasons. The court has also held that gaming, and the overseeing of gaming, are not ‘essential’ elements of First Nations culture, thus not protected under federal law. In contrast, Canadian First Nations are only permitted to operate gaming activities with a provincial licence and in accordance with corresponding laws, which numerous individuals perceive as an infringement of tribal sovereignty.

Despite pushing regulating power to provinces, the Canadian government will not get involved in gaming matters concerning its First Nations. However, provinces and tribes have joined forces when it comes to online gaming. For instance, last September, Saskatchewan announced that its online casino and sports betting platform will be run jointly between itself and the Federation of Sovereign Indigenous Nations, with both parties receiving equal revenues. The federation represents the province’s 74 First Nations.