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Estevan seen as attractive market for casino

The group interested in building a casino in Estevan is expected to meet with the provincial government in the near future to discuss their wish to open two casinos in Saskatchewan, one here and another in Lloydminster.
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The group interested in building a casino in Estevan is expected to meet with the provincial government in the near future to discuss their wish to open two casinos in Saskatchewan, one here and another in Lloydminster.

As The Mercury reported last week, the Little Pine First Nation approached the City of Estevan earlier this year with a proposal to build a casino/hotel complex. The information was made public when Mayor Roy Ludwig made a motion at a March 17 meeting to ask voters whether or not they would like to see a gaming facility built in Estevan. The non-binding question will be included on the ballot for the April 23 council byelection.

In interviews Monday, officials from Little Pine, which is located in northwest Saskatchewan near North Battleford, spoke at length about their proposal and why they chose Estevan as a potential site.

Chief Wayne Semaganis said Estevan, much like Lloydminster, is a good location for a casino, citing the city's location, young population and prosperous economy as attractive features.

Semaganis added that both Little Pine and the Saskatchewan Indian Gaming Association have identified the Energy City as one of the province's last viable markets for a casino. Since SIGA has not made any overtures towards Estevan, Semaganis said Little Pine is looking to seize the moment.

"I'm trying to run a business for my people, the community of Little Pine," he said. "I want to jump on these opportunities. I talked about it previously at a chief's assembly that was held in Prince Albert and I didn't do anything about it because I was coming up for re-election.

"A year later nobody had made any kind of move on it, I got back in as chief and I am making a move on it."

The Little Pine proposal is somewhat unique in that they do not want to be affiliated with SIGA, which currently owns and operates six casinos in the province. Their potential casino in Lloydminster would be wholly owned by Little Pine. If the Estevan venture gets off the ground it would be owned by a number of First Nations and possibly non-First Nations groups, and Little Pine would maintain a small stake. Little Pine has spoken to the nearby White Bear Reserve, which already has a casino in operation, and offered them a chance to invest in their project.

"For me it's straight business. SIGA is not for profit, and I want to get into a business where we own everything. I encourage investment and the way SIGA is right now, because you are a First Nations band, you automatically have a seat and a voice and that is not how business is," he said. "For me, I want to keep things as business as possible so politics does not interfere in things that we do."

On the gaming side, the proposal for Estevan calls for roughly 300 slot machines, with the possibility of adding more, as well as the usual table games. Little Pine is also looking into opening a sports book which would allow patrons to bet on individual games and events. Given Estevan's proximity to the U.S. border, the group believes a sports book, would be of particular interest to Americans. As well, it's estimated that a casino would create 200 new jobs.

Casinos are typically a divisive topic in any community, and if the early reaction is any barometer, that trend will continue in Estevan. Roughly an hour after a link to the story was posted on The Mercury Facebook page, almost 30 people had weighed in with their thoughts. Although some were in favour, the majority were adamantly opposed.

"I think that's a bad idea, we have enough problems with people being drunk and there's a high enough drug addiction problem in Estevan, let's not add gambling to this. The police are busy enough as it is," commented Tammy Densley.

The thoughts of Densley were largely representative of those against a casino in Estevan. Supporters feel a casino could have many positive spinoffs for the community.

"I would support a new business in our community which would provide stable, well paying, entry level employment for Estevan residents as well as revenue for city coffers," said Brad Cooper. "Gambling is simply a form of entertainment, which our city could use. If coupled with a hotel/convention development it could be a great tourism draw, which has additional spinoff revenue for the city."

Semaganis addressed the concerns, noting that casino gaming is heavily regulated and also addresses addiction by setting aside money for those in need of help.

"It is a business to make money, but it is also your moral and ethical responsibility to ensure that you do not hurt individuals. But I do not feel that we should let the weaknesses of a few decide the healthy choice of the great majority," he said.

As for positive spinoffs, Semaganis said a casino would be a terrific tourism draw and that businesses throughout the community would benefit.

He added that under their proposal a Community Development Corporation would be created and would receive 25 per cent of the profits. Of that, he estimated a third of those funds would be spent in Estevan on local projects such as recreational facilities or infrastructure. As well, because any land Little Pine were to purchase would become part of the First Nation, they would pay money to the City on an annual basis through a municipal service agreement. That payment would be equivalent to the taxable value of the land.

"We want to be a full part of the business community and also a recreational part of the community instead of just siphoning off as many dollars as we can. We are a neighbour too and we want to be a good neighbour."

Semaganis said along with meeting city council, Little Pine has toured Estevan and have located an area of land they are interested in. He added the group is well aware of the housing issues in the city and would look to build an apartment building for employees and may look at future buildings if there is a solid business case.

"I'm just looking at all business opportunities. Talking to a few of the financing groups that want to invest in our business, they are willing to provide the capital," said Semaganis, who was the general manager of the Gold Eagle Casino in North Battleford for five years. "They have done their homework too and that is their business deciding who is a good bet to lend money to."

Although the Estevan proposal is still in a very preliminary stage, Little Pine is said to be further ahead in Lloydminster, where they have purchased land. That land has been rezoned to allow for a casino and they have reached a municipal services agreement with the City according to an article in the Lloydminster Source.

The next step for them is to get the necessary licences from the Saskatchewan Liquor and Gaming Authority and Semaganis said they plan to meet with the province within the next couple weeks. The fact they wish to operate independently outside of SIGA could be a sticking point but Semaganis said he is confident in their chances of success.

"What I have seen of this government is that they are pro-business," he said. "I do not see why having a casino operating outside of SIGA is such a big issue when SIGA can have casinos and the government can have casinos; why can't Little Pine First Nations have a casino?

"This is a venture that is going to benefit not just my First Nation but also the city that we plan to open businesses in. It's the hotels, the shops, the restaurants, the grocery stores, the car dealerships bringing in a bunch of new customers to all those businesses is going to impact everybody."

In an article last week, Mayor Roy Ludwig said the City of Estevan is willing to listen to the Little Pine proposal and will take into account what residents and the provincial government have to say on the matter.

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