The Six Nations Gambling Fight
The more I delve into the history of gambling on the Six Nations Reserve in Caledonia, the more I think there are issues behind the Caledonia land dispute that have nothing to do with land.
Imagine this scenario. You are a successful businessman. You want to expand into gambling, but you are being harassed by a local council that is worried about laws that you don't think apply. You try to do an end run around them, they fight back, you persist -- and in all of this, you are wondering just how can you get these troubling people out of the way. You know that gambling is not popular with the voters. If you can somehow swing the voters to your side, you can cut the council off at the legs and get what you want. You are the largest employer in the area, but that doesn't seem to be enough. You are respected, but the people aren't going to give you a blank cheque just because you run a local factory. You need to be a hero! What better way than to put it all on the line, take on forces larger than yourself in a classic David-vs-Goliath battle, and if you're lucky, get yourself roughed up, just a little. Now the people don't just respect you, they adore you. Those cowards on the local council know you have the people behind you, and realize that they will need to pay a price to keep their jobs. That price is to give what you wanted in the first place -- the sole right to managed a lucrative gambling interest without interference or resistance.
Is this Ken Hill's plan?
Consider these excerpts from the Six Nations Council report on internet gaming in 2003:
The following gaming activities are permitted by the Terms of Reference:
- Raffle lottery schemes. (Chapter 4).
- Monte Carlo lottery schemes. (Chapter 5)
- Break-open ticket lotteries. (Chapter 6)
- Lottery schemes at fairs and exhibitions. (Chapter 7)
- Lottery schemes at public places of amusement. (Chapter 8)
- Bingo lottery schemes. (Chapter 9)
- Lottery schemes conducted at bazaars. (Chapter 10)
There is no provision in the Terms of Reference for the conduct, on or off reserve, of gaming activity over the internet.
During the month of June Chief Roberta Jamieson, and Councillor Sid Henhawk attended a meeting at Grand River Enterprises (GRE). Gerry Montour, Ken Hill and Steve Williams attended the meeting. During this meeting, Mr. Montour and Mr. Hill stated their interest in operating a call center and becoming involved in on reserve internet gaming. Chief Roberta Jamieson requested a legal opinion and business plan on the proposed initiatives and Mr. Montour agreed to forward these documents to the Six Nations Economic Development Committee.
At the June 30th Economic Development Committee meeting, Gerry Montour (Acting CEO of GRE Enterprises Inc.), and Steve Williams representing the SixNet partnership discussed their intention to operate Internet Gaming and other potential projects such as a call center and an on-line "shopping mall". Mr. Monture explained that the SixNet partnership had already invested $1.19 million for T-5 fibre cables and equipment. He explained that this would be a "host site" on the internet and that Six Nations would be "landlords" only. The Economic Development Committee requested a legal opinion and business plan and Mr. Montour indicated that he could forward a legal opinion within one week and would provide a business plan.
No further communication was received by the Economic Development Committee from SixNet or the Gaming Commission with respect to this proposed new project. Council was not asked to approve any amendments to the Gaming Commission's Terms of Reference. Council did obtain a legal opinion from Brian Crane, that internet gaming activity in Canada directed at customers who reside in Canada or in foreign countries was not authorized under the Criminal Code. No legal opinion was received from SixNet.
In October, 2003 a complaint received by the Band Council Administration about internet gaming on the reserve. When this complaint was investigated it appeared that the following websites had been established on the internet:
- www.absolutepoker.com - This website contains information allowing a player to open an account and play a variety of virtual poker games online. The absolutepoker.com website contains a statement that Absolute Poker is licensed and regulated by the Six Nations Gaming Commission and has a link to the Six Nations Gaming Commission website. (The website has now removed the logo of the Six Nations Gaming Commission but still retains the statements that it has been licensed by the Gaming Commission and operates under its legal jurisdiction)
This matter came before Council at a Political Liaison meeting held on October 27, 2003.
It was noted by Council that it had not approved the Rules and Regulations to regulate internet gaming or internet gaming license fees which had been posted on the internet. It was noted by Council that it had not approved the establishment of internet gaming on the reserve or the creation of any of the websites and promotional material including a revised Six Nations Gaming Commission logo, found on those websites relating to the Six Nations Gaming Commission.
After discussing the issue, and with Councillor Glenda Porter present, Council passed the attached Resolution terminating the appointments of the members of the Six Nations Gaming Commission - Ava Hill, Glenda Porter and Steve Williams.
It is the recommendation of the Interim Gaming Commission that Six Nations Council not authorize any form of internet gaming which is conducted or promoted by persons on the Reserve unless and until there has been public discussion and approval of the activity by Council.
Quite the soap opera. Interestingly, despite what the report said in 2003, AbsolutePoker.com is still showing the band logo.
Note that Steve Williams, a former chief, a member of the council gaming commission until he was fired over starting an internet gaming enterprise without permission (and for lying to council about it), is also president of Grand River Enterprises, and so is a business partner of Ken Hill. And as we now know, the two renegade gaming commissions, Haldimand Mohocks and Allies Gaming Commission and the Six Nations Internet Gaming Regulatory Body, operate out of the Grand River Enterprises offices.
I have not found any documents after this report indicating that the Council had changed its position on gambling. The band council report of September 2004 reiterated all the points above.
So we have Ken Hill and his team (Steve Williams and Jerry Montour) trying to make a profit on internet gambling, arguing that Canadian law forbidding internet gambling does not apply on the reserve. Williams uses his position on the council's gaming commission to give the internet gaming the veneer of respectibility. The council doesn't buy the legal argument, and is angry about Williams' actions. Williams is fired, and the council is demanding that all representations of the gambling as being under council permission be eliminated.
How annoying this must be for Ken Hill.
What must really be annoying is that the people on the reserve are also against gambling. From the Hamilton Spectator on February 27, 2006:
Six Nations Chief David General believes the people will have to decide whether Internet gaming is a safe bet for Canada's most populous native reserve.
He said all members of the elected band council now agree the thorny question, which first surfaced three years ago, has to be determined by the voters themselves.
The issue first surfaced in 2003 when a group called SixNet approached the Six Nations Gaming Commission (SNGC). It wanted to use a facility on the reserve for Internet gaming. At the time, local entrepreneur Gerry Monture was acting as SixNet's spokesman and promised to deliver a business plan to the gaming commission.
Proponents of Internet gaming claimed it would create high-tech jobs on the reserve and bring in about $3 million a year in licensing fees for the band council. As far as the legality was concerned, they argued the reserve is a sovereign nation and not subject to Canadian laws.
Opponents, including General and about half the band council, argue the financial benefits would go mainly to private interests and not the people.
They're also concerned about the possible criminal and civil liability of sanctioning an activity their lawyers say is illegal in Canada. There is no specific provision in the Criminal Code exempting First Nations people from the law.
General said he isn't morally opposed to Internet gaming, but believes the band council would lose control of the activity under the SixNet proposal.
David said public information sessions were held late last year and the majority of people attending said they didn't want Internet gaming on the reserve.
The Internet gaming referendum would be the second time band members have voted on gambling.
Years ago, the people collectively registered a resounding "no" to a proposal for a reserve casino.
Three years and no progress. The internet gaming continues, but the legality is in limbo. Without council backing, it is hard to expand. Worse yet, the council is actively opposed. And as long as the people back the council, the council can continue to say no to Ken Hill, and there's nothing Ken Hill can do about it.
Unless he can get the people to back him instead. Swing them to his side. But he can't convince them to support gambling. He has to get them to support Ken Hill, the man. If he's popular enough, the people will turn a blind eye to his gambling enterprise.
Then the Caledonia land claim fight erupts.
Amazingly (to me anyway), the dispute starts on February 28, the day after that article in the Hamilton Spectator is published pointing out that the Six Nations people are generally against internet gaming and casinos.
What happens? Ken Hill, businessman and internet gaming proponent, is on the barricades. Not only that, he manages to get himself arrested for assault.
Bet he's being played up as quite the hero on the reserve.
I have to wonder if he's hoping he can turn his arrest into political muscle to take on the council. It can't help but give him credibility. With that comes popularity, and with that comes the power to force the council to cede to his wishes.
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Comments
Steve, if you're right about this, you better move to a safehouse somewhere in Saskatchewan, and sleep with a 12-guage.
How are we ever going to clean up this corrupt mess?
Posted by: ml at June 25, 2006 11:28 PM
Keep up the good work on this issue - I don't think Caledonia has anything to do with land claims.
check out: http://www.caledoniawakeupcall.com/
Posted by: Gary McHale at June 26, 2006 06:31 AM
Steve, you are one guy working out of Toronto on the internet. You were able to dig up all this juicy news fairly quick, like within a week or so of Ken Hill's name being published for assault.
Dalton McGuinty, Premier of Ontario which is the most populous and richest province in the country, has access to CSIS info, OPP info, not to mention lots of cooperating American cop/spy outfits and satelite surveilance and gawd only knows what else.
In your opinion, is it even faintly reasonable that our Dalton wouldn't know this information about Ken Hill?
Posted by: The Phantom at June 26, 2006 09:12 AM
I don't know what McGuinty knows. He doesn't do his own research, so he knows only what his people tell him. Who knows what they filter out? Of course, people have the remarkable ability to ignore what they don't to hear.
But my posts aren't aimed at McGuinty (though it would be nice to know if he or his people read them). They are aimed at you guys, since it is pretty obvious the main stream media is not talking about these links. If they aren't saying anything, you won't hear about it. Who knows? Maybe I can goad them into apply some their research and interviewing muscle into checkng out this angle.
Posted by: Steve Janke at June 26, 2006 09:17 AM
That would be nice, eh? Media doing actual work for a change.
Your theory makes a lot more sense than a sudden freakout of land claim activists. Their statements are so crazy, they have to be made strictly for the rubes.
As to Dalton and his boys, I can't decide if him knowing its all a gambling scam is worse than him not knowing. The first indicates a truly cynical political calculation on Dalton's part, the second indicates total and abject incompetence at all levels of government.
I just put two and two together and get four. Warrior Society is running most of the smuggling in the area because they have access to the border. Warrior Society is running the casinos. Ken Hill made his money on smuggled smokes. Warrior Society members recently busted for running guns into Toronto.
That's just from your site and the media which we agree is doing its best not to pay attention. Add in Oka and Ipperwash, plus the internet stuff, and hey presto, and we have what looks like a criminal enterprise of huge proportions acting with government permission.
Meanwhile up north the reservations don't have clean water and people live like rats.
Paints a pretty ugly picture of governance in this country. Thinking maybe we should look into that at some length.
Posted by: The Phantom at June 26, 2006 10:01 AM
Rumors persist as well Steve that the Six Nations Reserve is one of the largest portals of drug smuggling in North America. Gun smuggling is also rumored to be a major source of revenue for the poor (don't pay income taxes, get paid to go to school and university, business grants to open smoke shops) little Indians. Have you been able to uncover any evidence to these claims? Who better to smuggle anything illegal across the border then a North American Indian who is not scrutinized when crossing.
Posted by: Sick of the Native Bull S$#t at June 26, 2006 04:14 PM
 
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