Canadian Gambling Legalization
Proponents of Bill C-290 cling to the revenue potential that is eliminated if they do not take control of the industry; An argument that can be better distilled by the comments of a supporter who said: “Make no mistake: if you vote against this bill, you are not voting to end single-event sports betting, but you are voting to ensure that it remains in the shadows, with the money flowing abroad and into organized crime.” It should be noted that the U.S. President`s Commission on Organized Crime ranks second after illegal sports betting after drugs as a source of revenue for crime syndicates. While Naraine closely monitors the development of the industry and observes it from an academic point of view, he has something else in mind for now: whether his first bet will pay off after legalization. “I bet the Toronto Blue Jays would win the American League East,” he said. It doesn`t look that great at the moment. The Saskatchewan Liquor and Gaming Authority oversees gambling in the province, but Saskatchewan Lotteries handles day-to-day sports betting. Saskatchewan lotteries accept sports betting through their Sport Select service. While online gambling sites cannot be legally operated within Saskatchewan`s borders, there have been developments in the province that finally legalize online sports betting by the summer of 2022. At the moment, however, there is a wide range of offshore casinos and sports betting that accept Saskatchewan players, and residents can register and gamble without fear of legal consequences. Among Canada`s eleven provinces and territories, Ontario has made by far the most progress in its online sports betting market since it received the green light in August 2021. All iGaming operations that take place in the province are overseen by the Alcohol and Gaming Commission of Ontario (AGCO), a regulatory group established by iGaming Ontario prior to launch. The AGCO covers all online gambling in Ontario, from sports betting to online casino games. Online racing betting has not been discussed in terms of legalization.
However, one would expect that if online sports betting is allowed, online horse betting will also be licensed and regulated in Ontario. But experts also warn that betting can lead to addictive behavior and significant financial losses for some. By allowing bets on individual games, these microtransactions can add up quickly. And due to the increasing access to sports betting sites, this can lead to irresponsible gambling as players try to make up for losses on one site by jumping on another. Yes, Canadians have enjoyed legal sports betting since 1985, but the addition of single-match betting will bring sports betting to unprecedented levels in the white Far North. Prior to August 27, 2021, parlay betting – two or more bets in one – and pari-mutuel betting were the only types of sports betting allowed in the country. In addition, these bets are only available through each province`s lottery system. This has led Canadians to look for cheaper online options and invest about $14 billion a year in gambling websites abroad.
To fully understand Bill C-218, you need to have a context for regulating gambling and betting in Canada in general. It surprises many to learn that the Criminal Code (the “Code”) is the central legal framework for regulating gambling activities in Canada. The code allows various gambling regulators in the province to operate under their own legislation, but it all starts with a complete criminal ban. Essentially, the Code prohibits both the offering of gambling and betting itself (in its myriad forms) and all activities designed to facilitate gambling or betting; For example, marketing, financing, provision of equipment, logistical support or rental of space for gambling or betting purposes. No. Canadians are not required to pay taxes on winnings from sports betting or any other form of gambling winnings. This money does not need to be reported to the CRA unless it is your main source of income. Then taxes would be applicable. Global gaming revenue is expected to reach $525 billion by 2023.
The online gaming and betting business (“iGaming”) accounts for a significant portion of these revenues, with an estimated market size of $66.72 billion in 2020. Canadians have shown an incredible appetite for iGaming, despite the fact that regulatory hurdles for private companies looking to enter the iGaming industry in Canada leave limited opportunities for Canadians: provincially run gambling, grey markets or offshore sites. Taken together, these numbers point to attractive opportunities for iGaming in Canada. The merits of Bill C-290 will continue to be debated, but it cannot be ignored that the current ban does not stop activities. Without a doubt, the debate on Bill C-290 marks one of arguably the most influential decisions on the legalization of sports betting in North America to date, and what is exciting is that Canada is at the forefront.
