Canada Eases Toward Single-Event Sports Betting

Now that the House of Commons and the Senate have approved bills legalizing single-event sports betting in Canada, only one step remains, for the governor general to give final approval and royal assent.

Canada Eases Toward Single-Event Sports Betting

Canada’s Senate has joined the House of Commons in approving Bill C-218, which would legalize single-event sports betting. It would amend the Criminal Code, freeing provinces and territories to adopt their own policies and regulations for sportsbook providers. It would also allow online wagering.

The House approved the Safe and Regulated Sports Betting Act in April. The next step is to forward the bill to the Governor-General for final approval and royal assent. Due to the resignation of the most recent Governor General, that duty is currently being filled by Chief Justice of Canada Richard Wagner.

It’s possible sports bets could be accepted in time for the NFL season in September. Websites and casinos could be licensed to accept wagers.

John Levy, CEO of Toronto-based sports betting provider theScore said the bill’s passage puts the country “one important step closer to legalizing single-event sports betting …. The body can now discuss how safe and regulated sports betting will benefit all Canadians.”

The Canadian Gaming Association estimates that offshore, illegal sports betting is a $14 billion black market. That includes U.S. online casinos that take Canadian bets. Levy said that extrapolating U.S. figures to Canada leads him to estimate that online sports betting could generate as much as $5.4 billion annually.

Canada allows the type of sports betting that must include at least two games, known as parlay bets. Such wagers are under the umbrella of local and regional lotteries. The only exception is horse racing, which does allow single-event bets.

Allowing single-event bets would put Canada on an even field with its Southern neighbor. Many feel that the passion of Canadian fans for the National Hockey League would drive a robust market in sports betting during the NHL season.

Bill C-218 has bipartisan appeal and has navigated multiple readings with few amendments, the only significant one preserving the pari-mutuel wagers for racetracks.

The bill’s sponsor MP Kevin Waugh remarked on the “extraordinary amount of support that this bill received from all parties in the House of Commons.” Before the Senate voted on his bill he commented, “Am I confident? I’d say 50-50. It’s kind of out of my hands now.”

He ended up winning.

Waugh has argued for the bill as a way to help Canada recover from Covid-19. “I think with Covid, you can see the need provincially for needed funds. I know B.C., Ontario and Quebec are chomping and I think within a week of passing they could be up and doing single-event betting.” He added, “Take Thursday night] Montreal and Toronto [in the NHL], how much do you think would’ve been bet down East between those two storied franchises?”

Some have suggested it might be a shot in the arm for the Canadian Football League (CFL) which didn’t have any games last year due to the pandemic and reportedly took a $80 million hit. This would give the CFL the opportunity to forge sponsorship deals with sportsbook providers and through the sale of official league data.

British Columbia Lottery Corp. (BCLC) CEO Lynda Cavanaugh said in a statement: “Legalized single-event sports betting would support BCLC to shift play from unregulated websites to [its own site] PlayNow.com.”

A supporter of the bill is Paul Burns of the Canadian Gaming Association, who recently wrote: “Only through the regulation of this activity can it be brought out from the shadows and into the light where we can ensure that proper player protections are available, bets are fair, and the activity is safe.”

The bill, Burns said, is supported by a “broad coalition of stakeholders,” including “The gaming industry, municipal and provincial governments, First Nations, labor and business leaders, professional and amateur sports bodies, law enforcement, and problem gambling experts.”

He said the bill will, “give the provinces the ability to create strong regulatory standards and enforcement.” He added that it would “allow economic benefits to stay in Canada and help provincial governments, Canadian businesses, and local communities. The pandemic has had a severe impact on the hospitality, sports, and entertainment sectors, and making this product available will provide tremendous support as they build back their businesses.”

Stephanie Heredi, manager of the Centre For Problem Gambling and Digital Dependency, disagrees profoundly. She wrote, “The Safe and Regulated Sports Betting Act, has passed in the House of Commons and awaits approval in the Senate, which means Canadians are at risk of losing more money and faster than ever before, by wagering on the outcome of one single game.”

Conceding that most people who gamble are not addicts or problem gamblers, she argues, “we cannot disregard the thousands who are unable to do so, and the possible increase in problematic sports betting that may arise from this legalization.” She added, “Normalization of sports-wagering, ease of accessibility and play and increased promotion may lead someone who is predisposed to problematic gambling to engage in behaviors that could cause to major life-issues.”

She added, “Let’s be clear, I believe this bill is not to protect Canadians from the pitfalls of problem gambling, this will likely benefit a lucrative gambling market at the expense of hard-working Canadians more so than anything.”