http://www.cbc.ca/news/canada/manitoba/story/2011/...
Can't say I've worked in that industry, but from working in other industries with management fees, 37% seems pretty high.
Update:@Howard L: I have no stake in this, realistically speaking, outside of the few million my provincial government takes off the hop.
This was a news story on TV last night. I've noticed the CBC tends to blow things out of proportion on other stories. That's why I ask before I form an opinion.
This is what we were told is the fee - 37%. Is that a typical management fee in the casino world? That's all I'm asking. No greed or any other motive. Also, if you had seen the TV version, the First Nations people they interviewed were actually defending the management firm & the deal.
Before I get caught up in CBC's rhetoric, I'd like to know the industry standard.
@ (((Guy))) - you very well could be right, it does appear that way on the surface. I'd still like a comparison before I go there.
They said more 'shocking' news about this tonight...LOL...can't see how anything even exploitation is shocking now a days....
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For a First Nations casino......not at all.....but you won't find those sort of management fees attached to a non-Native Canadian casino. Certainly not either in Niagara Falls pays out that much....but then again, they don't even pay out nearly the taxes that Rama or Great Blue Heron does either. Exploitation at its finest.
Apparently the Casino wouldn't even exist if it wasn't for the efforts of the management company. The 63% of 27 million the tribes got is a lot more than 100% of nothing. Doesn't seem at all steep to me. What it does seem like is another case of someone becoming greedy and dissatisfied with the contract terms they agreed to.
It seems to be a lot. Several years ago my state of Alabama voted on whether to have a lottery or not. It was voted down because it came out in the news that the people running it would get paid so much that they would have to raise taxes to run the lottery.
Yes, but it's not unusual. All casino deals are, imo, are a rip off of the people they're meant to benefit.
Just one more example of exploitation.