+ RMA Rural Municipalities
of Alberta

Resolution 8-03S

Gaming Licences for Non-Profit Groups/Dissolution Requirements

January 1, 2003
Expiry Date:
March 31, 2006
Active Status:
Vote Results:

WHEREAS the Alberta Gaming and Liquor Commission grants gaming licenses to non-profit organizations to assist with the operations of a casino; AND WHEREAS the Commissions Gaming Licences Policy states that “proceeds from the gaming activity will be used only for charitable or religious objectives or a purpose approved by the Board”; AND WHEREAS the Commissions Gaming Licenses Policy states that “a group that provides recreational sports activities for its members, and operates a facility, may be eligible for licence if its bylaws include a dissolution clause. If a group dissolves, any assets remaining after paying debts and liabilities must be given to eligible charities”;

Operative Clause:

THEREFORE BE IT RESOLVED that the Alberta Association of Municipal Districts and Counties urge the Alberta Gaming and Liquor Commission to amend their policies to allow dissolution clauses to include municipalities as potential recipients of the assets of a dissolving non-profit organization.

Member Background:

A number of municipal recreation facilities are run by non-profit organizations. The non-profit organizations provide an efficient and effective way of providing recreational activities to our ratepayers. The organizations receive funding in various ways, including operating grants from the municipality, user fees, and other grants from the provincial government including gaming licences. As a result of a recent application for a gaming licence, a recreational club that operates a municipally owned arena was advised to change its bylaws to indicate that any proceeds from the gaming licence, if disbursed, would go to a charitable organization and not to the municipality that owns the facility. The application happens to be for repairs to the ice-making plant and the Zamboni, which are owned by the municipality. Therefore it is difficult to disburse the assets when the municipality owns them.As a result, this issue also extends to curling rinks, ski hills, parks, and community centres that are owned by a municipality but operated by non-profit organizations. The municipality is recommending that the AAMD&C lobby the Alberta Gaming and Liquor Commission to change its policy in this regard, so that if a group dissolves, the assets may be given to an eligible charity and/or to the municipality that owns the facility or equipment.

RMA Background:

The AAMDC has no resolutions currently in effect with respect to this issue.

Back to Resolutions Database