Features of casinos on Indian reservations

1) Legal basis: why the model is "different than in the USA"

In Canada, gambling is prohibited in principle, but Art. 207 of the Criminal Code makes a key exception: the provincial government can "conduct and manage" the lottery scheme in accordance with provincial laws. This is the foundation on which First Nations projects are built: they are possible through agreements with the provinces and within their regulatory regimes.

💡 Bottom line: Canada does not have a direct "federal license" for reservations like the US; instead of "compacts" with the federal center - provincial agreements and the supervision of the provincial regulator.

2) How it works on the example of the provinces

Saskatchewan: SIGA as operator on behalf of communities

Saskatchewan Indian Gaming Authority (SIGA) is a non-profit corporation that operates seven land-based casinos and, since November 2022, the province's only legal online site, PlayNow SK (in conjunction with SaskGaming/BCLC). Net income is redistributed using the formula: 50% - First Nations Trust (74 communities), 25% - local Community Development Corporations, 25% - into the total income of the province. Supervision - Provincial (SLGA).

Ontario: Casino Rama and distribution agreements

Casino Rama is a partnership between Chippewas of Rama First Nation and OLG; agreements provide for the community's share of income and socio-economic effects (jobs, infrastructure). In addition, there is a general provincial income sharing agreement with the First Nations (First Nations payments in the OLG report - $163 million in 2023/24 due to a share in the gross revenue of the corporation).

Manitoba: 'First Nations casino' and geography

Provincial arrangements led to the creation of several First Nations casinos (South Beach, Aseneskak, Sand Hills). At the same time, research and the regional press noted that success depends on the location: in smaller markets, profitability is lower, while access to urban markets was limited by the terms of agreements.

3) Who regulates: provincial oversight + own institutions

Provinces retain the role of conduct & manage and regulatory control (e.g. SLGA in Saskatchewan, AGCO/OLG in Ontario, LGCA in Manitoba, etc.). This means licensing, personnel/supplier suitability requirements, technical standards, RG/AML and auditing.

First Nations own bodies can play an institutional role. The most famous example is Kahnawà: ke Gaming Commission (Quebec): acts on the basis of Kahnawà: ke Gaming Law, regulates interactive games (online) since 1999, regularly updating Regulations concerning Interactive Gaming (latest edits - December 2024).

4) Money and communities: how income is distributed

The revenue model is often enshrined in provincial and tripartite agreements. The most public case is SIGA: all net income is returned to the province and communities according to the agreed formula (50/25/25), and the share of First Nations Trust is directed to programs in 74 communities. Similarly, OLG in Ontario transfers annual amounts to the First Nations under an existing revenue sharing agreement (e.g., $163 million in 2023/24).

5) Age, advertising and "house rules"

Age requirements and advertising frameworks are identical to provincial ones: if the casino is located in Alberta - 18 +, in British Columbia/Saskatchewan/Ontario - more often 19 + (check local regulations). Responsible play standards (self-restraint, self-exclusion, warnings) and equipment technical certification also apply through provincial controls. An example of an online segment is PlayNow SK, where GameSense/self-exclusion and geolocation within the province operate.

6) How "casino on reservation" differs for the player and for the operator

For the player:

Such an object is usually on First Nation land, but the rules of the game, age and consumer protection are provincial.
The contribution to the community is direct: part of the net profit goes to First Nations Trust and local development funds.

For operator/partners:

Agreements with the province are required (on supervision, revenue sharing, number of tables/slots, RG/AML, advertising, etc.).
Equity models and special arrangements are possible (example Casino Rama and a revenue sharing framework agreement for all Ontario First Nations).

7) Online highlight: where the First Nations are already "online"

Saskatchewan - an indicative case: PlayNow Saskatchewan launched in 2022 in partnership with SIGA and SaskGaming (by agreement with the government), this is the only legal online site in the province. So the First Nations got an operational role in iGaming while maintaining the provincial "conduct & manage."

Canadian casinos on First Nations lands are a synthesis of provincial governance and local community participation. Unlike the United States, legality is ensured through Art. 207 of the Criminal Code and provincial agreements, and not through "compacts" with the feds. The stability of the model is based on three whales:

1. provincial oversight (conduct & manage, standards, RG/AML), 2. the operational role of First Nations organizations (SIGA, etc.), 3. transparent distribution of income to communities and regions.

So reservation casinos become not only gaming centers, but also an instrument of economic development and self-financing of local programs.

💡 Where to check numbers and statuses: Criminal Code s. 207, SIGA annual reports (and 50/25/25 allocation news), OLG First Nation payment materials, Casino Rama pages, PlayNow SK, and Kahnawà: ke Gaming Commission online gaming regulations.