Town of Hay River considers taking a bigger cut of Chase the Ace - Action News
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Town of Hay River considers taking a bigger cut of Chase the Ace

Chase the Ace has surpassed $200,000 in prize money, and the Town of Hay River is considering changing its bylaws to take a bigger slice of future games.

Change in bylaw would see town take a percentage rather than a flat fee

The Town of Hay River is deliberating on how to change its bylaws to make the most of the increasingly popular Chase the Ace raffles.

Chase the Ace has been earning hundreds of thousands of dollars for the Hay River Curling Club and for its eventual lucky winnerwhile attracting hundreds of people tothe town every Friday. Now town council is debating whether it is currently getting enough out of the deal.

On Monday night, council discussed the possibility of changing the existing fee structure around the game, in the process claiming five percent of the total prize money from raffles. That would mean that for a Chase the Ace game like the current one, the town could claimwell over $10,000.

For a prize likethe record-breaking Sydney, Nova Scotia game in May, worth $2.9 million, it would mean a windfall of$145,000 for the town.

Currently the town has a tiered systemin which raffles worth over $20,000 pay a total of $1,550 each draw, according to Glenn Smith, who coordinates Chase the Ace for the Hay River Curling Club.

The amended system would have raffles pay a $50 fee each week, and then five per cent of the total prize money once the jackpot has been won.

Not allcouncillorswere in favour of the idea, with councillorsVinceMcKayand KeithDoheyvoicing concerns that the town shouldn't be taking from organizations that areraising money to provide a service.

"I don't want to see this become a cash cow for the town," saidMcKayin council.Doheyagreed, saying the town should not be profiting off the work of community groups.

Councillor JasonCoakwellraised concerns overthe wording of the amendment. The amended bylaw wouldtakea cut of "total value of prizes offered,"whichcould cause problems for some raffles that, for instance, spend $9,000 for an ATV that brings in $10,000 in ticket sales.If the bylawdoesn't take into account net (rather than gross) earnings, organizations could even end up losing money on raffles.

Inuvik, where Chase the Ace is said to have originated, has a similarfee structure to what Hay River is proposing, but with a five percent fee for prizes over $1,250.

InNova Scotia, where Chase the Ace has reached certified frenzy status, the province-wide gaming commissioncollects less than half of whatInuvikdoes:2.13 percentof any prize over $500.

Council has already changed existing bylaws to account for the ballooning popularityof Chase the Ace. In May, they voted to restrict the number of Chase the Ace games that could go on at the same time to one.

That brought about its own challenges, however:Council now also has to decide whichapplications get priority.In the last four months, two organizations have asked for permission, and it is all butcertainthat following the success of the current game, other organizations are soon to follow.

The amendment is being discussed by administration and the finance committee, and will return to council after that.

Corrections

  • An earlier version of this story incorrectly described the town's current lottery license systems. The original story said that raffles worth over $20,000 pay a total of $1,550. This has been amended to reflect that licensees pay a $1,550 payment for each draw.
    Oct 04, 2016 5:10 PM CT