First Nation Bid to Block Casino Deal Loses in Ontario Court

A Divisional Court ruling has gone against a Kenora-area First Nation seeking to build a casino on its reserve. The Wauzhushk Onigum Nation sought a judicial review of the process that led to the Ontario Lottery and Gaming Corporation awarding Gateway Casinos a casino license for Kenora.

A Divisional Court in Toronto has dismissed a court action by a Kenora-area First Nation seeking to block a casino deal in the area and hoping to see a casino built on its reserve.

The Wauzhushk Onigum Nation sought a judicial review of the process that led to the Ontario Lottery and Gaming Corporation awarding Gateway Casinos a casino license for Kenora. In 2016, OLG selected Gateway as the operator over another bidder, Leaf Entertainment Group, which had a partnership deal with the tribe. However, Leaf’s application for the northern bundle proposed locating a casino in Kenora, not on the WON reserve.

A lawyer for the community told local media that the court’s decision to dismiss the application has left her and her clients “grossly disappointed.”

Kenora is part of the northern bundle of centers approved for gaming operations, which includes Gateway’s casino in Thunder Bay. The company has said it will spend $21 million to build a gaming center in Kenora that will open in 2020.

According to reports, after Gateway won the bid, the tribe asked the company to consider placing its casino at Wauzhushk Onigum and discuss a revenue-sharing arrangement. When that plan did not move, the tribe filed a request for judicial review of the government’s and OLG’s actions related to the Kenora casino.

In dismissing the application, three justices ruled that the provincial cabinet’s decision in 2012 to allow a casino in Kenora and to develop it through a competitive bidding process is not subject to review in court.

Officials for the tribe have not said if it will appeal the decision.