January 27, 2010 Toronto Star
Keith Leslie
The Chippewas of Rama will get a 1.9 per cent share of gross revenues from Casino Rama under a new 20-year agreement with Ontario Lottery and Gaming to act as the landlord of the casino on their land north of Orillia.
Casino Rama has had more than $5.2 billion in gross revenues, and profits of about $500 million since it opened in 1996. It had revenues of $498.4 million for the year ending March 31, 2009.
The share for the Rama First Nation in the first year of the new deal would be approximately $8.8 million, up from $5.8 million.
The agreement with the Rama First Nation, home to about 1,500 residents, takes effect Aug. 1, 2011, and includes two successive renewal options of 10 and five years, at the discretion of OLG.
"We're very pleased because it gives certainty to the future not only of Casino Rama and the Rama First Nation but also the surrounding communities as well," said Chief Sharon Stinson Henry.
The province takes a 20 per cent cut of gross revenues from its casinos while the 133 other Ontario First Nations, excluding the Chippewas of Rama, have shared net profits from Casino Rama.
The Chiefs of Ontario agreed in 2008 to give up rights to Casino Rama revenues for $201 million and 1.7 per cent of provincial gaming revenues starting next year. The deal is expected to give First Nations in Ontario $120 million a year, or $3 billion over 25 years.