Canada’s Assembly of Manitoba Chiefs (AMC) and Sand Hills Casino Resort have sued the provincial government of Manitoba and Manitoba Liquor and Lotteries, claiming they were promised a share of gaming wealth—but never saw it. They were not allowed to open a casino in Winnipeg, despite promises.
The $640 million claim, plus $248 million in punitive damages, alleges that the province made a deal with First Nations to authorize five casinos before any commercial casinos would be allowed. Instead the provincial government allowed True North Sports and Entertainment’s Shark Club to open and then allowed non-tribal casinos to license 500 additional video lottery terminals.
The lawsuit, besides seeking monetary claims, seeks to have the Sand Hills Casino or some of its machines, relocated to the Winnipeg region.
The tribe’s Grand Chief Arlen Dumas said they have been trying to work with the province for 20 years. “Gaming for First Nations in Manitoba is a part of our culture, and should be a meaningful tool for our economic development. We engaged with the Government of Manitoba starting 20 years ago in a regime for First Nations to get licenses for, own and benefit from what was supposed to be the next five casinos in the province. These casinos were supposed to be established in viable markets. We were supposed to become more financially sustainable as a result. This did not happen.”
The tribe and the Sand Hills resort claim that the decision denied them access to “the only market in Manitoba where casinos can generate significant revenue.” And that the Manitoba Liquor and Lotteries Board attempted to preserve their market share by keeping AMC and Sand Hills Casino Resort out.
The claim adds, “The government kept the Winnipeg market for themselves and non-First Nation owners and relegated the First Nations to more remote areas in the province.”
They add that the government increase the costs of equipment, denied loan guarantee extensions and refused to meet to discuss these issues, despite many requests.
The tribe had been threatening legal action ever since the provincial Brian Pallister government denied its request to expand gaming in Winnipeg. Pallister has said the gaming market is oversaturated.
Last September the premier said, “I want people to get jobs, I want people to have opportunities to grow and learn and work together and help each other, and the gambling industry isn’t going to do that.”
At that time, then-AMC Grand Chief Derek Nepinak declared, “Winnipeg is the gaming market in Manitoba and for us to be shoved aside and kept out of the prime gaming market is unjust. It’s in bad faith and we aren’t going to stand for that. We are upping the stakes by looking at our legal options and moving from there.”
In 1997 the Bostrom Report, commissioned by a former government, and later adopted as policy, called for five First Nations-owned casinos—but only three have been opened: Sand Hills, Aseneskak and South Beach Casino and Resort.”
The non-First Nation casinos that were allowed to open: Club Regent and McPhilips Street, both in Winnipeg, are operated by Manitoba Liquor and Lotteries. In 2013 the government granted a license for a third casino to be operated by it.
The Sand Hills Casino has operated in the red for years and made no profits to distribute among the First Nations. The government has done nothing to alleviate this problem but instead increased equipment costs and denied loan extensions, says the suit.
The provincial government nor Manitoba Liquor & Lotteries have commented on the lawsuit or filed a statement of defense.
