Q&A: Is Canada inching closer to legal single event sports betting?

Back in June professional sports leagues including the NBA, NHL, MLB, MLS and Canadian Football League sent the Canadian Prime Minister a statement of support for an amendment to Canada’s criminal code to allow betting on single sporting events.

Granted it’s not huge progress in the plight for legal sports betting in Canada, but it is more significant than anything that has happened in the last few years.

Here, gaming and regulatory lawyer at Dickinson Wright in Toronto, Canada Chantal Cipriano breaks down the country’s current regulatory landscape:

EGR NA: What do gaming laws in Canada look like at the moment?

Chantal Cipriano (CC): We are a bit different from several other jurisdictions as there is a monopoly on gaming by our governments, with no private operator market available. Gaming and betting is legislated by our federal Criminal Code and conducted and managed by our provinces.

While igaming is run by our governments, we have a large offshore igaming market whereby operators in different jurisdictions offer their products to Canadian players. They operate in a so-called “grey zone”.

In regards to sports betting, we offer parlay betting, but we have not legalized single event sports betting, making it difficult for our border casinos to compete with casinos in the United States that have legalized single event sports betting.

EGR NA: What are the most recent movements in legalizing single event sports betting in Canada?

CC: The Safe and Regulated Sports Betting Act, a Private Member’s Bill known as Bill C-218, was introduced into Parliament by Kevin Waugh, member of parliament for Saskatoon-Grasswood. The Bill, if enacted, will amend the Criminal Code to legalize betting on the outcome of a single sporting event.

In addition, the commissioners of the five professional sports leagues in Canada sent a letter to our Prime Minister, Finance Minister, and Justice Minister and Attorney General of Canada, indicating their support for the legalization of single event sports betting and requesting the government amend the Criminal Code.

EGR NA: Why has the government opposed bills for legalizing single event sports betting in the past?

CC: Gambling has simply never been a priority in this country. We prioritize several other issues before gambling, and while we are not trying to be the next Las Vegas, I think we have missed the mark when opposing the two previous bills that attempted to legalize single event sports betting. As a result, revenue is flowing out of our economy by way of Canadian players placing bets on a single sporting event with offshore operators. For the third time, we have the opportunity to bring such revenue back into our economy and use it for all of our other priorities.

Another reason for opposition is problem gambling. I understand the concern, but we have programs in place to offset such concerns. Perhaps if the Bill is enacted, our programs will be strengthened even further.

EGR NA: What is a likely timeline for the possible implementation of single event betting in Canada?

CC: Some people in the industry are hoping that this will happen within the next couple of months, particularly in light of all the revenue that has been lost by way of our casino closures due to Covid-19. Others think that this will not happen for the next few years since our government does not have a real interest in gambling matters. Perhaps it will not happen at all (although at this juncture it seems unlikely)! I cannot say for certain.

EGR NA: What have you been working on in this space?

CC: I do a lot of work with offshore igaming operators that are interested in entering the Canadian market by offering their products to Canadian players. I assist with, amongst many other things, assessing their risk profile and restructuring operations. I am also involved with advising igaming start-ups.

In regards to land based gaming, I counsel various casino suppliers with their licensing, reporting, and compliance and governance obligations in order for them to serve the casinos.

EGR NA: Is the industry more bullish than it has been in the past on the potential for legal single event sports betting in Canada?

CC: It seems the industry is definitely more open to it now than it was in 2012 and 2016 when the other two bills were introduced. This can be attributed to the many stakeholders that are now on board, including the sports leagues, members of parliament, and other industry experts.

Chantal Cipriano is a gaming and compliance lawyer at Toronto firm Dickinson Wright