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Canadian Gamingnews Canadian Gaming News Issue 100 March 2003 Celebrating 100 issues with more to come ! The first issue of Canadian Gaming for Proposals (RFP) for proponents News, or Canadian Casino News as to build and operate casinos in Hali- it was then called, went out in May fax and Sydney. Responses were 1994. Our PublisherIEditor, Ivan due July 29. There was surprize Sack had borrowed money to meet when it was found that the wording family expenses during the time it of the RFP was almost identical to took to create a list of possible sub- that of the RFP the OCC had issued Ivan Sack scribers and to research, write and for Casino Windsor. There were I 1 print the May issue. seven responses with ITT Sheraton the first such vote in Canada. He sold 8 annual subscriptions the winning. In 1995 the Yukon's Diamond Tooth first month at $990 each. The next Sahara, Harrah's and Holland Gerties Casino celebrated its 25th month he cut his price in half and sold Casinos responded to a September anniversary; Michigan Governor En- 9 more. By the end of the first year he RFP to operate Casino Regina. gler said no to Detroit casinos; our had cut the price again and had almost Holland Casinos won that one. Fed- industry stopped a federal proposal to fifty subscribers. For most of this eration of Saskatchewan Indians tax lottery and casino winnings; and time he had never set foot in a casino Chief Roland Crowe was less for- month after month passed without a - no comments please. tunate. He lost his job when oppo- RFP to select an operator for Casino Canadian Gaming News is today read nents said he had exchanged the Rama. across Canada and in seventeen addi- Saskatchewan First Nations' rights When Rama's RFP was issued, on tional countries. to operate their own casinos for job May 1, it was structured differently and profit guarantees at Casino from that for Windsor. Proponents May 1994 was the same month that Regina. Casino Windsor opened with Mike were not required to submit a design. Rumbolz as its president. A ham- In 1994 we scooped the Govern- Proponent costs for Windsor got out burger at the casino's fast food court ment of Quebec by announcing that of hand with some spending in excess cost $5 (fries were extra); valet park- a casino would be built in the City of $1 million on their proposals as ing was $50 per car; daily slot gross of Hull - what is now Casino du they were required to provide their exceeded $600 per machine, and table Lac-Leamy. The City of Ottawa own architectural designs - which minimums were $25. Any wonder saw this as dashing its hopes for a were then ignored by the OCC. The that, per square foot, this was the most casino. dome over Casino Windsor's entrance profitable casino in the world? At this time we also wrote that comes from one of the losers - from Bally's design. 1 Casino de Montrkal had already been Steve Wynn's proposal for a mega opened for six months by this time casino resort on the City of Vancou- The Ministry of Aboriginal Affairs, with Ron Sheppard its first General ver waterfront would go nowhere. and not the OCC, was responsible for Manager. While smaller than today, Wynn, who had been led to believe selecting a site and operator for what it was grossing $1 million a day. that his proposal had the support of became Casino Rama. then-Premier Mike Harcourt, re- It gave the fourteen First Nations In June 1995 Casino de Montre'al ceived a rough welcome when he gained the distinction of being one of which competed for the casino the went to Vancouver to present it. He right to sign operating agreements the few North American casinos to was so angered by the response that close because of a labour dispute. with operators. When the OCC be- he killed the initiative on his flight came involved it refused to recognize Within a year a strike also closed back to Las Vegas. Casino Windsor. the agreement which the Mjikaning 1994 wrapped up with the City of First Nation, the winner, had reached On June 1, 1994 the Nova Scotia Niagara Falls voting, 12,666 to with Bally Gaming. Bally threatened Project Committee issued a Request 7,640 to support a casino. This was to sue though never did. -Page 2 Canadian GAMING News - telford and Prince Albert. The fol- Quebec's involvement, lost their in- lowing month it opened casinos in vestments. We also received a brown Casino Niagara Yorkton and on the White Bear First envelope which said that the Ontario Nation. Vindication for Chief government had hired a consultant to Crowe. advise it on privatizing the OCC. Casino Regina opened January 25, In February 1997 Ontario announced 1996. It was immediately handi- 44 charity casinos with a total gaming capped by wildly optimistic profit area double that of that province's projections contained in a consul- three commercial casinos. Municipal- tant report used to gain political ities could put the issue on their up- approval for the initiative. Within a coming November municipal ballots. year its first president, Ron Sten- It was a one-sided debate with the gler, was gone. government refusing to defend the ini- Ken Fitzgerald In February of that year the Ontario tiative as their polls said it was a loser. Thirty-eight municipalities held refer- Ken Fitzgerald has joined Casino government, citing contracting ir- endums with only Brantford, Hamil- Niagara as Executive Director of regularities which were never ton and Thunder Bay agreeing. On Entertainment and Convention Ser- found, halted construction on June 26, 1998 the government killed vices. Casino Rama. It also said it would the programme and said that Ontario For the past nine years Mr. Fitzger- keep the casino's 20% win tax which the previous government had would, instead have four charity casi- ald has been with MGMIMirage nos. It later paid the operators who where he held various positions in promised to Ontario's 133 First Na- tions. This is still before a court. were denied the right to build the the entertainment and conventions casinos $52 million in compensation. departments of the MGM Grand, In May 1996 Ontario announced the Golden Nugget, and the Board- that it would place 20,000 VLTs at In May 1997 the Manitoba Lotteries walk Hotel and Casino. horse racing tracks, and in bars, ho- Corporation announced that it would enlarge McPhillips Street Station In addition to the management tels, restaurants and in 50 small casinos across that province. Its Casino; Club Regent Casino, and skills and experience required to close the Crystal Casino. operate a large entertainment and Monte Carlo casinos, which fun- convention services operation, neled money to charities, would be On January 14, 1998 British Supreme Fitzgerald's expertise also includes closed. Court Jusfice Owen-Flood turned the complex technical elements of a That summer Casino Rama opened charitable gaming on its head with a professional showroom including and the Government of Alberta an- ruling which said that governments acoustics, recording and sound- nounced that it would leave the could not share in the profits from mixing equipment, lighting and spe- Western Canada Lottery Corpo- charitable gaming. Known as the cial effects. ration. It then changed its mind. Nanaimo decision, it has become one of the most important decisions in The RFP for Casino Niagara was Canadian gaming. Its significance is In August 1995 the OCC announced released September 12, 1996 with that though it went against govern- it would pay $23.5 million to lease a responses due March 13, 1997. Louisiana riverboat - what became ments, they turned it around and used Four proposals were received it as an excuse to rewrite the rules and the Northern Belle Casino to alle- - though, unlike Windsor, the big op- enter areas of gaming which had pre- viate pressure on Casino Windsor. erators did not respond. That viously been the exclusive preserve of Two years later the OCC declined to September B.C. Deputy-Premier charities. No one other than the chari- purchase it for $1. Dan Miller talked of another large ties suggested that the Criminal Code September saw eleven Alberta First casino - a large Monte Carlo-style be amended to allow them to continue Nations form a First Nations Gam- casino. He was criticized and im- to be involved. mediately dropped the idea. ing Congress. We also wrote that 100 issues and almost nine years is a * Binion's Horsehoe Casino had de- Edmonton's Baccarat Casino lot to cover in two pages - and it velopment agreements with the Louis opened; Superstar Bingo was an- turned out we could not. The first Bull and Enoch First Nations; and nounced in Ontario; and Loto- time we wrote this article we mostly that Casino Magic had an agreement QuCbec said, a month later, that it quoted headlines which left too much with the Tsuu T'ina First Nation. would operate a casino onboard a out. And so we decided to give you a In November Ontario's newly elected Miami cruise ship. $50 million was snap shot of some of the things which Harris government approved a casino spent on lawyer, consultant and de- happened in the the early days of our for Niagara Falls and the sign fees but the ship was never publication. This is a dynamic indus- Saskatchewan Indian Gaming Au- built. Many small investors who try with a lot of history.
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