The Samson Cree First Nation in Hobbema, which has been racked with gang violence, is one step away from getting permission to build a resort-style casino.

The latest victim of the gang violence was a 16-year-old boy who was shot and killed on Sunday.

In April, two-year-old Asia Saddleback was caught in the crossfire of gang activity, when a bullet struck her as she ate dinner in her grandfather's home on the reserve about 100 kilometres south of Edmonton.

In a bid to reduce the violence, a four-month gun amnesty, announced last week, begins on Friday. Hobbema residents can hand over their illegal or unwanted firearms and ammunition to the Mounties from Aug. 1 to Nov. 30 without facing charges for possessing unregistered and unlicensed weapons.

Lynn Hutching Mah, spokeswoman for the Alberta Gaming and Liquor Commission, said a review of the Hobbema application is nearing completion.

"We’re looking into the background of the proponents, and other key persons associated with the project. So, if everything checks out, the commission would then recommend to the board, and the board would make the final decision on approving construction," she said.

If approval is given, the band is planning to use the money made from gambling to fund programs that would fight drugs and gangs on the reserve.

While a casino could mean more jobs and more money for the community, a University of Alberta professor warns it could also bring more social problems.

"They should realize at the outset that while there are benefits, there are absolutely going to be associated costs — particularly with problem gambling," said Harold Wynne, who researches the effects of gambling.

"The costs can be prohibitive, and can perhaps outweigh the benefits from such an adventure, as well-intentioned as it may be — costs such as those borne by problem gamblers and problem gambling in the community. Typically, in the siting of any casino, these kinds of costs haven’t been calculated into the picture."

Wynne said any community about to get a casino should put in place gambling addiction programs.

Samson is hoping to gain approval ahead of a rival bid from the nearby Louis Bull Mountain First Nation because the Alberta government will only grant one casino licence for the area.

Alberta's first aboriginal-run casino opened on the Enoch Cree Nation reserve at the southwest edge of Edmonton in the fall of 2006. The first casino on a southern Alberta reserve, The Grey Eagle Casino southwest of Calgary, opened in December 2007.