Nova Scotia is one of the four Atlantic provinces of Canada. The province has an area of 21,425 square miles and a population of 935,000 (1998). The two casino cities – Halifax, the capital of the province, and Sydney – have populations of 350,000 and 85,000 in the respective metro areas.
In a province with high unemployment and a suffocating debt load, any new business investment that creates jobs is a welcome option. Casino gaming is such an option, and the government was wise to pick this option. Casino gaming not only creates jobs just as other business investments do, it creates many jobs and many secure jobs. In fact, casino gaming is perhaps the most labor intensive of all entertainment industries. In addition to the direct employment effect there is the indirect employment effect through the casinos’ purchases of goods and services. Furthermore, there would be a direct and indirect employment effect during the construction period of the casinos. Altogether, this would create an employment effect of substantial proportions.
Next in line is the tourism imperative. Tourism is a very important industry for Nova Scotia, and the government and casino proponents eagerly emphasized the enhancement of tourism through casinos. A note of caution is in order, however. Nova Scotia is known for its beautiful nature and tranquility, and that will remain the premier cause for tourists to come and see such attractions as Peggy’s Cove and the Cabot Trail. It would appear very unlikely that “gaming tourists” can be attracted in the sense of tourists who did not have Nova Scotia on their map previously and excluding visitors from the other three Atlantic provinces. Nevertheless, there can be no doubt that casino gaming will represent an additional incentive for tourists. This well-to-do category of gaming patrons is a premier target group for casinos in general and for the two Nova Scotia casinos in particular. Take, for instance, cruise passengers. The number of cruise ships coming to Halifax has risen considerably in recent years, and this increase has been fueled mainly by the New Atlantic Frontier consortium of sixteen East Coast ports. Cruise passengers will come to the casino, and they come in droves since the Halifax casino is only a leisurely twenty-minute walk away from the cruise terminal at Pier 21.
Finally, there is the monopoly aspect for the operator, which is perhaps the most powerful incentive and a lifeline for sustained profit performance in a sparsely populated province. The twenty-year contract with the government provided SCNS/Casino Nova Scotia with the franchise to be the sole casino operator in Nova Scotia. In fact, the monopoly extends to all of Atlantic Canada, at least for the foreseeable future, since there are no active casino-initiatives in New Brunswick, Prince Edward Island, and Newfoundland. This means a monopoly in a territory the size of France, with a population of 2.4 million people. It should also be noted that the Halifax and Cape Breton gaming markets can be viewed as separate markets, since they do not intersect at the 0–100-mile range. Consequently, the likelihood of cannibalism is very low.
After the announcement that casino gaming would come to Nova Scotia, some bands of the Mikmaq Indians indicated plans to establish casinos on Native land. Consequently, the government started negotiations with the Indian bands in order to preserve the monopoly status of the two casinos. In February 1995, an agreement was reached with the Eskasoni Band Council in Cape Breton regarding gaming activity on the reserve and profit sharing from the proceeds of the Sydney Casino. Specifically, under the terms of the agreement, the band would regulate and monitor gaming activity on the reserve, which would include VLTs and charitable gaming but not a casino. Furthermore, 50% of the profits of the Sydney Casino would be earmarked to go to the entire Mikmaq Community in Nova Scotia.
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