First Nations Development Fund

The 2001 First Nations Gaming Policy included a provision for the allocation of slot machine proceeds from First Nation casinos into a First Nations Development Fund Grant Program from the Alberta Lottery Fund. It was strongly supported by Alberta’s First Nations (77%) and was the result of hard work by government and First Nation representatives over a three year period.

Similar to the Alberta Lottery Fund, First Nations will be able to apply for grants to support economic, social and community development projects. The slot machine proceeds will be allocated as follows:

• 30% to traditional Alberta Lottery Fund initiatives.
• 40% to the First Nations Development Fund Grant Program. Of this 40%, 75% is available to the Host First Nations and 25% is shared among other First Nations in Alberta.

FNDF Grant Agreement Key Features

• Formulas for sharing the grant funding among all Alberta First Nations and covering administration costs from the FNDF Grant Program.
• Requirements that FNDF grants be used by First Nations only for economic, social and community development projects.
• Prohibition against using FNDF grants for operating or financing costs of a casino or other gaming facility/equipment or for per capita distributions.
• Requirement for reporting about the use of FNDF grants at least annually by the First Nations.
• Ability of AGLC or the Auditor General of Alberta to conduct audits to ensure compliance with the Agreement and FNGP.
• Ability to suspend the Agreement and discontinue FNDF grants for non-compliance.
• Process for dispute resolution while retaining Ministerial powers for final decision making.