Frequently Asked Questions

1. What is the LONG-TERM REVENUE SHARING AGREEMENT?

In February 2019, the Province of British Columbia committed to 25 years of gaming revenue sharing with BC First Nations. The Interim BC First Nations Gaming Revenue Sharing and Financial Agreement provided for the transfer of the first 2 years of payments (2019/2020 and 2020/2021) to eligible BC First Nations. The long-term revenue sharing agreement, signed on September 16, 2020, will provide for a further 23 years of gaming revenue sharing. The Province and the First Nations Gaming Commission worked together to introduce legislative amendments to the Gaming Control Act (Bill 36) which received Royal Assent on October 31, 2019. Coupled with the long-term agreement this should provide BC First Nations the certainty of a long-term 25-year gaming revenue sharing arrangement.

2. HOW MUCH WILL BC FIRST NATIONS RECEIVE?

Eligible BC First Nations will share in 7% of total net gaming revenue collected annually across the province. This commitment means approximately $3 billion in shared provincial revenue over the 25 year term of the agreement to support First Nation communities.

3. WHO is eligible to RECEIVE a share OF GAMING REVENUES?

All First Nations communities (Indian Bands, Treaty First Nations, and Self-Governing First Nations Established by Statute) situated in British Columbia will be eligible for gaming revenues. Once First Nations become partners in the limited partnership, they will receive a share of the gaming revenue which is collected by the Province and then transferred to the limited partnership for distribution.

4. ARE THERE CONDITIONS FOR HOW THE MONEY MAY BE SPENT BY FIRST NATIONS?

Eligible BC First Nations will determine their own priorities for these funds, which may be spent within six categories of approved purposes:

1. Health and wellness;

2. Infrastructure, safety, transportation and housing;

3. Economic and business development;

4. Education, language, culture and training;

5. Community development and environmental protection; and

6. Capacity-building, fiscal management and governance.

Direct distributions to individuals are not permitted.

Reimbursements to BC First Nations members participating in programs and services, such as education and training programs, are permitted. Reporting at fiscal year-end should demonstrate that the funds were administered through a program or service.

Eligible BC First Nations may pool their funds in order to jointly further a project that falls within one of the above categories.

5. HOW WILL REVENUE BE DISTRIBUTED AMONG BC’S FIRST NATIONS?

The First Nations Gaming Commission has developed a distribution model, approved by resolutions at the British Columbia Assembly of First Nations, First Nations Summit and Union of British Columbia Indian Chiefs, and to be reviewed after 5 years.

Funding will be distributed to communities based on the following formula:

1. 50% base funding (divided equally among partnered and eligible BC First Nations);

2. 40% based on registered population; and

3. 10% for geographically remote communities.

This formula will ensure that all eligible First Nations receive a share of the funding and that larger eligible First Nations are provided with additional funding, based on their registered population (both on-reserve and off-reserve populations). The 10% to be distributed among remote communities recognizes the higher costs of developing infrastructure and bringing services and economic activity to those communities.

6. WHAT IS THE LIMITED PARTNERSHIP?

The First Nations Gaming Commission established the BC First Nations Gaming Revenue Sharing Limited Partnership to receive, manage and distribute funds. The limited partnership is an apolitical flow-through entity through which the gaming revenue sharing funds are received, managed and distributed in a transparent manner. All eligible BC First Nations were invited to become limited partners in the limited partnership. Gaming revenue will be transferred from the Province to the limited partnership for distribution. The limited partnership is governed by an Indigenous corporate board of directors appointed by BC First Nations. The general partner will be responsible for receiving, managing, distributing and reporting on gaming revenue on behalf of all participating BC First Nations.

7. WHAT IS THE PURPOSE OF THE LIMITED PARTNERSHIP AND WHY IS IT NEEDED?

The BC First Nations Gaming Revenue Sharing Limited Partnership is a special purpose entity run by First Nations, for First Nations. It was formed in 2019 to perform the administrative role of receiving, managing and distributing First Nations' share of gaming revenues received from the Province of British Columbia under the revenue sharing agreements. The use of a limited partnership in gaming revenue sharing with First Nations was adapted from the Ontario model which has proven successful in delivering gaming funds to Ontario First Nations for almost twenty years.

The role of the limited partnership is to support limited partners in satisfying their obligations under the partnership agreement and to assist unsigned Eligible First Nations in becoming limited partners. The limited partnership conducts all of its operations from a First Nations lens. For example, the limited partnership will interpret usage of funds for Approved Purposes to include within its meaning and scope the cultures, traditions, values, beliefs, methods and practices of First Nations in order to afford First Nations as much latitude as possible for use of funds.

The limited partnership, as a matter of principle, is accountable under the revenue sharing agreements and limited partnership agreements to carry out its duties in a cost-effective and transparent manner.

The First Nations board of directors and the staff of the limited partnership include chartered professional accountants, lawyers, and others with financial and business acumen to ensure funds are managed to a high standard. As a value-added service, a limited partner may request the limited partnership to invest its funds in certain permitted investments and may direct that the funds be released to the limited partner at any time.

8. What documentation must be submitted to register as a limited partner?

On August 12, 2019 an information package e-mail was sent out to all eligible First Nation’s with all the required documentation for registering your First Nation to the Partnership. In order to finalize your registration, all of the documentation listed below must be received by the Partnership. Please find a list of all required documentation to finalize your registration below:

• Joinder Agreement

• Band Council Resolution

• Bank Account Information Form

• Auditor Contact Information Form

• Cheque of $110.00 Payable to BCFN GRS GP INC.

Please find a detailed step-by-step application tutorial here.

9. WHEN CAN FIRST NATIONS EXPECT TO RECEIVE THEIR SHARE OF THE FUNDING?

The Interim BC First Nations Gaming Revenue Sharing and Financial Agreement facilitated a transfer of $194.84 million, representing the first 2 years of payments (2019/2020 and 2020/2021), to the BC First Nations Gaming Revenue Sharing Limited Partnership. In August 12 2019, all eligible First Nations were sent a comprehensive information package including step-by-step instructions on how to join the limited partnership. The 2021/2022 fiscal year funds were distributed in May 2021 to limited partners. First Nations partners can expect to receive the funding in May of each year moving forward.

10. Is the B.C. First Nations Gaming Revenue Sharing Agreement the same as the Provincial host local government gaming revenue sharing program (“HLG Program”)?

British Columbia’s HLG Program provides for the Province to share gambling revenue with local governments that host casinos and community gambling centres in BC. Host local governments receive ten per cent of the net casino gambling revenue from community casinos and community gambling centres in their jurisdiction. Host local governments may use this revenue for any purpose within their legal authority, but must submit annual reports to the Gaming Policy and Enforcement Branch.

The HLG Program is in some respects similar to the First Nations gaming revenue sharing scheme, but different in other ways. Both require that funds be expended for a public benefit to the host community (with the Approved Purposes being essentially examples of public benefit spending), require a simple reporting form to be returned and prohibit per capita distributions. However, important distinctions exist which reflect the core principles of the First Nations agreement and the evolution of First Nations interests in British Columbia. 

11. WHAT ARE FIRST NATIONS’ REPORTING AND ACCOUNTABILITY OBLIGATIONS UNDER THE AGREEMENT?

All gaming revenue recipients, such as municipal government and non-profit organizations, have reporting requirements for the use of funds from gaming revenue. Participating BC First Nations will be required to submit a short spending statement annually to the limited partnership, confirming how gaming revenue was utilized. These are in turn provided to the Independent Appointee, an independent third-party auditor jointly appointed by the limited partnership and the Province of British Columbia. The limited partnership will provide aggregated reports to limited partners and the Province each year. Neither the limited partnership nor BC First Nations are obligated to provide individual First Nations’ spending statements.

12. WHAT ARE THE CONSEQUENCES IF FIRST NATIONS DO NOT COMPLY WITH THEIR OBLIGATIONS REGARDING USE OF FUNDs AND REPORTING?

The function of the limited partnership is to assist participating BC First Nations in meeting their obligations under the revenue sharing agreements. If a First Nation uses its funds outside of an approved purpose or if it does not submit its reports in a timely manner, the limited partnership may allocate a portion of the First Nation’s funds towards helping the First Nation meet its obligations under the agreements.

The general partner has the discretion to suspend payments in accordance with policy guidelines set by the general partner. If a First Nation remains non-compliant five months after its payments are suspended, the First Nation may forfeit its share of distributions and the general partner may distribute the funds among the remaining eligible First Nations.

13. WILL THE PROVINCE BE DECREASING FUNDING THAT SUPPORTS EXISTING PROGRAMS AND SERVICES NOW THAT BC FIRST NATIONS HAVE ACCESS TO ANOTHER SOURCE OF FUNDING?

There will be no reduction in provincial funding to First Nations as the result of the new gaming revenue sharing agreement. Funding provided through the new gaming arrangement will be incremental to all existing provincial funding that First Nation communities currently receive. Additionally, the agreements do not in any way reduce BC First Nations’ access to community gaming grants.

14. Will the BC First Nations Gaming Revenue Sharing distributions impact funding received from the federal government?

The gaming revenue sharing is intended to benefit all BC First Nations, including Treaty First Nations.  Treaty First Nations can benefit from gaming revenue sharing without any impact to Own Source Revenue (OSR). The federal government’s OSR policy exempts provincial transfers of revenues from a lottery corporation, and this includes transfers under the Long-Term British Columbia First Nations Gaming Revenue Sharing and Financial Agreement.

15. does the gaming revenue sharing arrangement have any impact on claims regarding jurisdiction over gaming, siting of gaming facilities or conduct of gaming?

The Long-Term BC First Nations Gaming Revenue Sharing and Financial Agreement expressly does not affect, impact or detract from any asserted or determined Aboriginal or Treaty rights pursuant to section 35 of the Constitution Act, 1982. Any long-term agreement will include a similar provision. First Nations may pursue claims in respect of gaming, however the gaming revenue sharing funds may not be used to further those claims.

16. If a first nation is unsure about whether a proposed expenditure falls within the approved purposes, who can THEY CONTACT for further information?

The six categories of approved purposes are broad. In determining whether an expenditure falls within an Approved Purpose, the general partner and Appointee will interpret it within the meaning and scope of the cultures, traditions, values, beliefs, methods and practices of BC First Nations.

For further information, please contact the limited partnership at info@bcfngamingrevenue.ca. Please allow 5 business days for a response.

17. MY COMMUNITY IS NOT CONSIDERED AN ELIGIBLE FIRST NATION. HOW CAN WE BECOME ELIGIBLE?

The criteria for determining eligibility of BC First Nations to participate in gaming revenue sharing was established by the British Columbia Assembly of First Nations, First Nations Summit and Union of British Columbia Indian Chiefs. As a matter of practical necessity, the initial list of Eligible First Nations started with all Indian Bands, Treaty First Nations and Self-Governing First Nations Established by Statute situated in British Columbia.

While it recognizes the right of First Nations to self-determine their governing entities, the limited partnership itself is apolitical and does not have the tools or authority to make determinations of eligibility.

In recognition of the right of self-determination, several mechanisms have been built into the partnership arrangements by which an ineligible First Nations community may become eligible to receive funds:

1. If the ineligible First Nations community becomes an Indian Band, completes a Treaty or becomes a Self-Governing First Nation Established by Statute, at that time it will fall within the eligibility criteria and will become eligible to receive a revenue share.

2. The limited partnership will follow a direction that it receives from an eligible First Nation to redirect a portion of funds to an ineligible First Nations community or to recognize it instead as the eligible recipient entity.

3. The First Nations community may approach the British Columbia Assembly of First Nations, First Nations Summit or Union of British Columbia Indian Chiefs, or any limited partner, to propose its addition to the list of eligible First Nations. The limited partnership will add the entity to the list of eligible First Nations upon ratification by its limited partners.

For more information, please view the Backgrounder document on our website.