Ontario Agrees to Pay Indians Billions in Gambling Revenue
Indian tribes located in Ontario, Canada, have been suing the state for three years over taxes taken from Casino Rama. Today a settlement was reached which should use gambling revenues to benefit the tribes for years to come.
The issue began when the Canadian government put a 20% tax on winnings at the casino, situated north of Toronto. Lawsuits by Ontario chiefs argued the tax collections were illegal.
In the deal ratified today, Ontario tribes will receive an immediate payment of $201 million. The expiring agreement, which runs through 2011, will continue to pay the tribes $60 million annually. Starting in 2011, the new compact takes over and the payment is doubled, to $120 million.
The deal promises 1.7 % of all gambling revenue within the province to the tribes. Over 25 years, the amount paid promises to be over $3 billion.
"It's an historic agreement . It's a jump-start to helping to assist the living conditions in First Nations," said Aboriginal Affairs Minister Michael Bryant.
Although control of how the money is spent will remain with each Indian community, health care, education, and infrastructure are all high on the list of needs, and are expected to be addressed with the new income.
As part of the settlement, the Chiefs of Ontario agree to drop their lawsuits regarding the taxation of Casino Rama.
