ORIGINS & DEVELOPMENT OF CASINO GAMBLING IN ALBERTA

1925 – 1967 – Midways & Traveling Carnival Shows

Casino gambling in the Province of Alberta originated from the gaming activities that were permitted on the midways of traveling carnival shows at agricultural fairs and exhibitions¹. Prior to 1967, sanctioned gaming consisted of such activities as dart throws, crown-and-anchor wheels, and hoop toss type games of chance and skill (Campbell, 1981).

1967 – 1974 – Casino Events at Agricultural Exhibitions

With the opening of the week-long casino near the Silver Slipper Saloon at the Edmonton Exhibition Grounds during the Klondike Days annual fair in July 1967, the concept of gambling for both entertainment purposes and for generating revenues was born (Campbell, 1981). This took place due to the initiative of Edmonton businessman Bryce Van Dusen and Edmonton’s Chief Crown Prosecutor Richard Anthony and it was not the result of provincial policy changes (Beare, Jamieson, & Gilmore, 1988). It is now believed that the casino’s blackjack game was technically illegal as the existing Criminal Code exemption for agricultural fairs did not include “21” games.

Two years later, the Frontier Casino on the Calgary Stampede grounds opened for business during that city’s annual agricultural exhibition. By 1970, cities such as Lethbridge, Red Deer, and Medicine Hat, Alberta all had introduced and were profiting from casino-style gambling run under the agricultural fair exception (Campbell, 1981).

From 1969 until 1974 the only major casinos permitted were those events sponsored by agricultural fairs.  According to Campbell (1981), during this six-year span an occasional one-evening casino was permitted, often in conjunction with some philanthropic activity although it is not clear if these events were formally licensed or approved.

1975 – 1980 – Proliferation of Temporary Charitable Casino Gambling

In 1975, the Attorney-General’s department of the Alberta Provincial Government began to grant multi-day casino licenses in order to assist charitable organizations with the generation of revenue. It is believed that one particular four-day casino event in Calgary in 1975 marked the first major interpretation of a section in the Criminal Code allowing organizations to manage a lottery scheme (Campbell, 1981; Beare, Jamieson, & Gilmore, 1988). Starting in 1976, the casino licensing system was based on “casinos being an alternative fundraising activity by eligible community organizations, which were required to be accountable for the use of proceeds and the conduct and management of casino gambling being the responsibility of the charity” (Alberta Gaming and Liquor Commission, 2001). During this period, commentators have suggested that casinos had undergone a transformation from an entertainment-oriented industry to one that was motivated by fund-raising (Campbell & Ponting, 1984).

1981 – 1990 – Establishment of Permanent Charitable Casinos

Alberta’s first permanent, privately-operated charitable casinos were opened in Calgary (1980 – Cash Casino) and in Edmonton (1981 – Casino ABS). Random draws were held beginning in 1981 to determine the dates when an eligible charity could hold a casino event. During the 1980’s, a series of small changes were made to how charitable casinos were permitted to operate (e.g., allowable casinos per week increased to eight from four, number of blackjack tables permitted per casino increased, betting limited raised to $50, etc.).

1990 – 2000 – Significant Growth & Expansion of Casino Gambling

Even before the introduction of slot machines to Alberta casinos and racing entertainment facilities in 1996, the number of permanent casino facilities was increasing. In 1994, there were three permanent casinos in Calgary and well as in Edmonton (Ocean, 1996). By 1995, the number of provincial facilities had increased to 11 full-time casinos and three that operated on weekends (Alberta Gaming and Liquor Commission, 2001). Also during the late 1990s, the casinos themselves were transforming from basic gambling parlours to larger and more sophisticated destinations. Examples of these changes included allowing the doubling of the maximum number of slot machines in casino facilities, for liquor to be served on the gaming floor, and an allowance to operate on Sundays. The profitability of slot machines no doubt helped spur this growth post-1996. Interestingly, Campbell (1997) had accurately predicted that casino management companies and provincial governments in Alberta and British Columbia would not be able to resist the allure of larger “urban” casino-style gambling that was being developed in other Canadian provinces.

Another important development in the development of casino-style gambling in Alberta was the 1996 introduction of slot machines to the Edmonton Northlands horse racing facility as part of an initiative to revitalize the horse racing industry.

2000 – 2004 – Managed Growth of Traditional & First Nations Casino Gambling

The government announced the First Nations Gambling Policy in January of 2001, which allowed for on-reserve casinos. A moratorium restricting new casino development was subsequently removed in 2002 and the province proceeded slowly with respect to increasing the number of licensed casino facilities (although several facilities expanded).

An eight-step process was established to guide new casino facility applications for both traditional casinos and First Nations casinos. A similar process was also developed for use by existing casino facilities intending to expand or relocate.

2005 – Present – Second Wave of Casino Growth Begins

The opening of Calgary’s Deerfoot Inn & Casino in November, 2005, the River Cree Resort and Casino on the Enoch Cree Reserve west of Edmonton in October, 2006 and the Century Casino & Hotel in northeast Edmonton in November, 2006 ushered in a second phase of growth in the total number of Alberta casinos. In 2007, one traditional casino (Casino Camrose) and two First Nation casinos opened (Casino Dene on Cold Lake First Nation & Grey Eagle Casino on the Tsuu T'ina First Nation west of Calgary). This was followed in 2008 with the introduction of two more First Nation casinos -- the Stoney Nakoda Resort and Casino (Kananaskis) and the Eagle River Casino and Travel Plaza in Whitecourt.

LEGAL AUTHORITY FOR CASINO GAMBLING Section 207 of the Criminal Code of Canada establishes the legal foundation for gaming activities. All gambling that occurs in any province or territory must meet the requirements of the Criminal Code. Provincial authorities are permitted to prescribe terms and conditions relating to the conduct, management and operation of licensed lottery schemes (the term “lottery scheme” includes both casino table games as well as slot machines). The Province of Alberta administers and regulates casinos under the provisions of the Gaming and Liquor Act (Alberta) and the Gaming and Liquor Regulation (Alberta). Important Dates: 1925 – Criminal Code of Canada formally exempted agricultural fairs and exhibitions from some of the prohibitions against gambling (e.g. bingo, wheels of chance). 1969 -- Criminal Code amendment that authorized provincial governments to manage and conduct lottery schemes and authorized charitable groups to do likewise under license. 1985 -- Amendment to the Criminal Code permitting provincial governments to administer computer and video gaming devices (i.e. VLTs, slot machines).

References

Alberta Gaming and Liquor Commission. (2001). Achieving a balance: Gaming licensing policy review. St. Albert, AB: Author.


Alberta Gaming and Liquor Commission. (2004). Annual Report 2003-2004. St. Albert, AB: Author.


Beare, M. E., Jamieson, W., & Gilmore, A. (1988). Legalized gaming in Canada. Ottawa:  Ministry Secretariat, Solicitor General Canada.


Campbell, C. S. (1997). Charity casino gambling in Western Canada. In W. R. Eadington & J. A. Cornelius (Eds.), Gambling: Public policies and the social sciences (pp. 152-159). Reno, NV: Institute for the Study of Gambling and Commercial Gaming. 


Campbell, C. S. (1981). Parasites & paradoxes: Legalized casino gambling in Alberta, Canada. In W. R. Eadington (Ed.), Gambling papers: Proceedings of the Fifth National Conference on Gambling and Risk Taking (pp. 186-207). Reno, NV: University of Nevada, Reno).


Campbell, C. S., & Ponting, J. R. (1984). The evolution of casino gambling in Alberta. Canadian Public Policy, 10(2), 142-155.


Campbell, C. S., & Smith, G. J. (2003).Gambling in Canada – From vice to disease to responsibility: A negotiated history. Canadian Bulletin of Medical History, 20(1), 121-150.


Campbell, C. S., & Smith, G. J. (1998). Canadian gambling: Trends and public policy issues. The Annals of the American Academy of Political and Social Science, 556, 22-35. doi:10.1177/0002716298556001003


Ocean, G. (1996). Challenging the stereotype of gamblers: A case study of casino regulars. Unpublished Ph.D. thesis, University of Alberta, Edmonton, Alberta, Canada.

Last Updated: 01/02/08 by Rhys Stevens