Equitable Provincial Charitable Gaming Model
IT IS THEREFORE RESOLVED THAT Alberta Municipalities request that the Ministry of Treasury Board and Finance, and AGLC expeditiously act on the findings of the Charitable Gaming Review and 2021 What We Heard report by implementing a more equitable provincial charitable gaming model to promote the long-term competitiveness and sustainability of charitable organizations across Alberta.
WHEREAS charitable organizations provide a valuable service across Alberta and their sustainability is of upmost importance to Alberta society;
WHEREAS the Alberta Gaming, Liquor and Cannabis(AGLC) helps to ensure the sustainability of charitable organizations through revenue generation made possible by volunteer charitable casino events;
WHEREAS an inequitable model for the disbursement of casino revenues to charities currently exists, and the frequency of revenue generating opportunities varies greatly based on location in the Province;
WHEREAS previous reviews of the charitable gaming model have articulated the inequities that exist across Alberta, yet decades of inaction have perpetuated these inequities; and
WHEREAS the AGLC initiated a charitable gaming review in 2019-2021, and are in the process of completing the review, to examine how the model is meeting the needs of Albertans and to look for opportunities to improve it.
In 2010, after significant stakeholder consultation, a Provincial MLA Advisory Committee provided a report to the Solicitor General and Minister of Public Security on “Eligible Organizations’ Access to and Distribution of Proceeds from Licensed Casino Events.” The Committee recommended the Alberta Gaming and Liquor Commission (AGLC) consider several changes to casino region boundaries and how proceeds are distributed amongst eligible charities.
Under Alberta’s current model, adopted in 2003, charitable groups that meet certain criteria may be licensed by the AGLC to conduct charity casinos, in coordination with licensed private casino facilities, as a revenue generating opportunity. These revenues are critical for charitable organizations’ sustainability and ability to provide services to communities across Alberta.
There are 19 casino facilities located throughout Alberta, each of which belongs to a ‘casino region.’ Charities are generally assigned to their nearest casino facility. Only charities located within Edmonton and Calgary, or who provide province-wide services are permitted to receive a license for a casino event in Edmonton or Calgary casinos.
In the 2010 MLA Advisory Report, it was identified that inequities exist because:
- There is a long waiting period to hold casino events across the province because there are more charitable organizations than there are possible casino events.
- The waiting period for charities to hold casino events varies, from 16 months in Fort McMurray to 34.5 months in Lethbridge.
- Amongst casino regions, charitable proceeds can vary, from an average high of $77,486 in the Edmonton region to $18,011 in the St. Albert/Camrose region.
Despite this report, inequities have continued to persist and grow over the last twelve years. The AGLC has recently reported that the waiting period for charities to hold casino events varies from 17 months in Fort McMurray to 41 months in Camrose. This is a notable increase from the MLA Advisory report.
Alberta Municipalities had a resolution on this topic approved by over 88 per cent of members in 2018, which provided the association’s position throughout the AGLC’s consultation, but the resolution recently expired in 2021. The intent of bringing this forward is to ensure that action is taken by the AGLC and/or Ministry of Finance and Treasury Board to implement a more equitable model, consistent with historical asks and recommendations, spanning over a decade.
In 2019, the AGLC surveyed over 3,800 organizations as part of the Charitable Gaming Review. The AGLC also conducted stakeholder engagement in 2021, which engaged 90 charitable organizations and representatives from casinos. Feedback from the engagement included:
- Casino revenues should be pooled provincially and distributed equally to charitable organizations; alternatives included pooling rural casinos revenue, pooling a portion of all revenue and distributing it equally and using a sliding scale to distribute based on need;
- Eliminate/re-draw casino boundaries so that charitable groups can choose any casino in the province; and
- Allow organizations outside the Edmonton and Calgary boundaries to have access to casino events, where revenue generation is greater.
A final report has not been received by Alberta Municipalities and relevant stakeholder groups to outline final recommendations. Given the nature of engagement that has occurred and the initial findings, it is important that recommendations are developed and actioned to benefit charities across Alberta, whose services are more important than ever.
The City of St. Albert believes that given the increased emphasis placed on this topic in recent months, and the AGLC’s communicated intent to provide recommendations on the topic and finalize their review of the charitable gaming model, Alberta Municipalities can help ensure that the AGLC completes this initiative, by adding its voice to this topic. A more equitable model will benefit the charitable organizations that support Alberta’s cities, towns, and villages.
The following table outlines the wait times and revenues each casino-region received in 2019.
Casino Region | 2019 Wait Time for Key Events (Months) | 2019 Annualized Return (product of wait times and proceeds) |
Calgary | 20 | $42,000 |
Calgary-Rural | 36 | $16,000 |
Camrose | 41 | $6,100 |
Edmonton | 23 | $39,000 |
Fort McMurray | 17 | $32,000 |
Grande Prairie | 31 | $14,100 |
Lethbridge | 33 | $12,000 |
Medicine Hat | 19 | $10,000 |
Red Deer | 36 | $8,500 |
St. Albert | 31 | $8,100 |
On March 22, 2023 Premier Smith stated that the government is “looking very closely at the Ontario model” to “address the discrepancy” with an intent to “bring others up” rather than take money away from better off regions.
In June 2023 responsibility for AGLC was transferred to the Minister of Service Alberta and Red Tape Reduction, ABmunis asked for a written update from the new Minister following his swearing-in in June 2023. On November 8, 2023 the Minister stated that he “100% agrees” changes need to be made and the government is seriously considering making the model more equitable across the province. In both March and June 2024 the province indicated that the need for reform remains on the Government of Alberta’s radar however it is unlikely action will be taken any earlier than fall, 2024.
ABmunis’ Rating of the Government’s Response
Intent not met – further action will be taken at a medium to high level of engagement.
ABmunis’ Notes and Actions
In February 2023, ABmunis reached out to the Alberta Gaming, Liquor and Cannabis (AGLC) to request they provide an update to ABmunis Economic Strategy Committee on the charitable gaming act review, progress on implementing recommendations and next steps. AGLC declined the request and instead referred the committee to the February 1, 2023 correspondence from the President of Treasury Board and Minister of Finance stating it contained “the most up-to date and fulsome information.” In subsequent inquiries to the Ministry ABmunis has been informed that changes are being contemplated and legislation addressing the disparity could be introduced in fall, 2024.