Sask. First Nations to manage casinos for Taiwan aboriginals, by Jason Warick - Canada.com - 25th July 2008
Deal to land group $600 million annually for a quarter century
SASKATOON - Saskatchewan's First Nations hit the jackpot during a recent trade trip to Taiwan, inking a casino deal expected to earn them up to $600 million a year for 25 years.
The Saskatoon StarPhoenix has learned officials with the Saskatchewan Indian Gaming Authority (SIGA) have signed a memorandum of understanding to manage one, and likely two casinos for the Thao Tribe, a Taiwanese aboriginal group. The arrangement was finalized during a recent trade mission by Saskatchewan First Nations officials that included major deals for Taiwanese companies to invest in northeast Saskatchewan's oilsands.
Taiwan's new president is receptive to casinos on the island, said Saskatoon First Nations consultant Ken Thomas, who has been to Taiwan several times over the past 15 years and brokered the casino deal.
A Las Vegas consortium is already signed on to run one major casino on Taiwan's Penghu Island, Thomas said.
The Saskatchewan Indian Gaming Authority has signed the memorandum to operate one, with two more likely at Kinmen Island and Sun Moon Lake for 25 years, he said. Annual revenue for each casino is estimated at $1 billion, he said. As the operator, SIGA's cut would be up to 30 per cent, for a potential total of $600 million.
"This is a global industry," Thomas said Thursday afternoon. "This is expertise SIGA already possesses. We have all the trainers."
SIGA operates five casinos in Saskatchewan, with a sixth in Swift Current, Sask., set to open later this year. Thomas was a negotiator for the original deal with the provincial government, which created SIGA in 1996.
The Taiwan casinos would dwarf any of those in this province.
Many of SIGA's current staff have the skills to help run these Taiwanese operations, and they may be asked to take senior positions there, he said.
Taiwan currently has no casinos, and mainland China allows them only in Macau, a special administrative district on the South China Sea. Macau's casinos are extremely profitable, but are largely controlled by Vegas interests, Thomas said. That's one reason the Thao Tribe wants SIGA to run their casinos, Thomas said.
"They're scared of the Vegas guys. They'd take over."
Thao officials are waiting for approval of their casino-permit applications.
The one at Kinmen Island could begin construction within a matter of months, but the Sun Moon Lake casino may take longer, Thomas said.
Thomas said more details should be available in October after SIGA officials return from another trip to Taiwan.
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