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

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

• Chase the Ace fever hits Hay River

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 claim well over $10,000.

For a prize like the 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 system in 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 all councillors were in favour of the idea, with councillors Vince McKay and Keith Dohey voicing concerns that the town shouldn't be taking from organizations that are raising money to provide a service. 

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

Councillor Jason Coakwell raised concerns over the wording of the amendment. The amended bylaw would take a cut of "total value of prizes offered," which could cause problems for some raffles that, for instance, spend $9,000 for an ATV that brings in $10,000 in ticket sales. If the bylaw doesn'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 similar fee structure to what Hay River is proposing, but with a five percent fee for prizes over $1,250. 

In Nova Scotia, where Chase the Ace has reached certified frenzy status, the province-wide gaming commission collects less than half of what Inuvik does: 2.13 percent of any prize over $500. 

Council has already changed existing bylaws to account for the ballooning popularity of 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 which applications get priority. In the last four months, two organizations have asked for permission, and it is all but certain that 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.