First Nations Reject $2.5 Billion Revenue Sharing Agreement
Government Disappointed With Lost Opportunity
QUEEN’S PARK, June 19 – The Government of Ontario is very disappointed to learn the Ontario First Nations Limited Partnership (OFNLP) has turned down a new gaming revenue sharing deal with the province. The unprecedented deal would have provided 133 First Nations with approximately $2.5 billion over 20 years to help improve the quality of life and future prosperity in their communities. “A tremendous amount of work, led by former Premier David Peterson and the First Nations Negotiating Team, went into negotiating and developing these unique agreements which would have resulted in a brighter future for First Nations people,” said David Caplan, Minister of Public Infrastructure Renewal and Minister Responsible for Ontario Lottery and Gaming.
“These agreements would have forged a new partnership with First Nations in Ontario,” said David Ramsay, Minister of Natural Resources and Minister Responsible for Aboriginal Affairs. “We are saddened that this one-of-a-kind opportunity has been lost.”
The agreements were designed to provide greater long-term financial stability to First Nations communities by supporting important community investments and did not address issues of First Nations’ sovereignty or jurisdiction. The agreements would have provided OFNLP with a 1.6% share of Ontario Lottery and Gaming Corporation’s gross lottery and gaming revenue beginning in 2011, $155 million in interim payments over the next 4 years, and the continuation of Casino Rama’s revenue distribution. The First Nations would have also received $112 million immediately upon the closing of the agreements.
This new, reliable source of revenue would have on average doubled the amount of annual funds available to First Nations under the existing Casino Rama arrangement due to expire in July 2011. Under that arrangement, First Nations are eligible to receive net gaming revenues from this single source, which recently averaged $60 million a year.
The proposed new agreements were based on the Agreement-in-Principle (AIP) signed by the province and the OFNLP in March 2006. As part of the AIP, the OFNLP undertook to release the province from its 20% WIN litigation. The AIP also set out terms for the use of funds to support expenditures in the areas of health care, education, and economic, social and cultural development.
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For further information: Amy Tang, Minister’s Office, (416) 325-4048; Anne Dunderdale, Communications Branch, 416-325-1810
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