First Nations Gain Control of On-Reserve Gaming

Summary#

This bill changes Canada’s Criminal Code and the Indian Act to give First Nations clear control over lotteries and gaming run from their reserves. It lets First Nations run these activities themselves, license others to run them, and set the rules—after giving written notice to the federal and relevant provincial governments.

• First Nations would have exclusive authority over lottery and gaming schemes run from or within their reserves, once they give notice.
• Band councils could pass by-laws to regulate how these activities are run on-reserve.
• Charities, fairs, and certain small amusement games on-reserve could be licensed by the First Nation.
• Provinces and First Nations could make agreements to sell tickets across borders (between provinces and reserves).
• For gaming purposes, a reserve would be treated as not part of the province after notice, which limits provincial control over on-reserve gaming.
• The bill confirms that computer-based raffles (like online 50/50) are allowed when licensed by a First Nation for charitable purposes.

What it means for you#

• First Nations governments

  • Gain control to run or license lotteries and gaming from the reserve.
  • Can set terms and conditions for licences and enforce rules through by-laws.
  • Must give written notice to Canada and the affected province(s) before using this authority.
  • Can make agreements with provinces or other First Nations to sell tickets across boundaries.

• Charities and community groups on-reserve

  • Can apply to the First Nation for licences to run raffles and other fundraising games.
  • Can use computers to sell tickets, choose winners, or award prizes for raffles, if licensed and for a charitable or religious purpose.

• Fairs, exhibitions, and local events on-reserve

  • Can be designated and licensed by the First Nation to run lottery-style games.
  • Small games at public places of amusement can be licensed if prize values are low (up to $500) and ticket prices are small (up to $2).

• Players and customers

  • May see more gaming options run by First Nations on-reserve.
  • Rules, ticket sales, and dispute handling for on-reserve games would follow First Nation laws and licences, not provincial ones.

• Provinces

  • Would no longer control on‑reserve lotteries and gaming once a First Nation gives notice.
  • Could still enter agreements with First Nations for ticket sales and cross‑border operations.

Expenses#

Estimated annual cost: No publicly available information.

Proponents' View#

• Recognizes First Nations’ inherent and treaty rights to self‑government over activities on their lands, including gaming.
• Aligns federal law with the United Nations Declaration on the Rights of Indigenous Peoples.
• Provides clear legal authority so First Nations can build and regulate gaming responsibly on-reserve.
• Creates potential for jobs and own‑source revenue for communities.
• Simplifies licensing for on‑reserve charities and community events, including modern tools like online raffles.

Opponents' View#

• Could create a patchwork of rules across the country, making compliance and enforcement harder.
• May lead to disputes with provinces over jurisdiction and revenue from gaming.
• Raises questions about consumer protection and problem‑gambling supports if standards differ between provinces and First Nations.
• Smaller First Nations may face costs or capacity challenges to set up and oversee licensing and enforcement.
• Cross‑border ticket sales and online elements may be complex to coordinate across multiple authorities.