SIGA eyes management sideline

The Saskatchewan Indian Gaming Authority (SIGA) is setting its sights outside the province.

SIGA, which operates six casinos inside Saskatchewan, is interested in contracting out its management services to other casinos across Canada, Guy Lonechild, chief of the Federation of Saskatchewan Indian Nations, said in a recent interview.

"The experience of the Saskatchewan Indian Gaming Authority in managing casino operations very successfully in rural Saskatchewan is a nice model for other parts of the country to look at . . . we run our casinos very efficiently in Saskatchewan. We have a very high retention and employment rate for First Nations people in the corporation and I think that’s drawing a lot of attention around the country," he said.

The Federation of Saskatchewan Indian Nations is the main owner of SIGA, a charitable corporation that distributes its earnings to Saskatchewan First Nations and to the province’s general revenue fund.

Lonechild said SIGA has had discussions with organizations in Manitoba, where there are two First Nations casinos and a third is being planned. As well, he noted the management contract for Casino Rama in Orillia, Ont., the largest First Nations casino in Canada, is coming open next year.

But the notion of SIGA operating outside Saskatchewan faces some significant obstacles and Lonechild acknowledged that it is "quite a ways away."

The casino operating agreement between SIGA and the provincial regulator, the Saskatchewan Liquor and Gaming Authority, expressly does not allow SIGA to "carry on or be engaged in or be concerned with or interested in or advise, lend money to, guarantee the debts or obligations of any person or entity engaged in or concerned with or interested in any business within or outside of the province of Saskatchewan."

SLGA spokesperson Stephanie Choma noted the SLGA and SIGA have a relationship as partners under the agreement.

"There is always an opportunity for them to sit down and discuss anything that comes up, opportunities that present themselves," she said.

Lonechild noted that the overall gaming framework agreement between the government and FSIN is coming up for discussion. The next review period begins in December, 2011.

"What we’d be planning is having a SIGA Management Inc., or some sort of arm of the FSIN, that would look at gaming management operations," said Lonechild.

SIGA president Zane Hansen was away from the office and not available for comment.

This is not the first time the idea of SIGA operating outside Saskatchewan has surfaced. In 2008, a consultant raised the possibility of the organization operating new casinos in Taiwan, but SIGA quickly quashed a proposed deal.

But being able to market itself outside Saskatchewan for its operational prowess would mark a remarkable turnaround for SIGA, which has had serious mismanagement issues in the past.

In 2000, then-CEO Dutch Lerat was fired after the provincial auditor flagged $360,000 in corporate debit and credit card advances. In November 2000, 16 SIGA directors were fired by the province after an audit revealed more than $1.7 million in misspending.

Since then, SIGA has been receiving improved marks from the auditor, although some issues have remained.

The provincial auditor’s 2009 report released last December called for improved training and supervision of employees to prevent the loss of money through error or fraud.