Lawmakers in Canada have submitted a bill that would legalize single-game sports betting in the country if it passes into legislation. Moreover, single game sport betting is still not legal nationally. But three states including Delaware, New Jersey, and Las Vegas allows for it. The move has reaped massive dividends for the three states, particularly Delaware, in terms of contribution to the economy. Baseball attracts the biggest number in terms of sports betting. Las Vegas-style betting on single-game sports would open the books to gamblers eager to put down cash on individual games rather than just Pro-Line-style betting, where consumers wager on. The Liberal government is rolling the dice on a bill to decriminalize one-game sports betting, five years after a previous attempt died in the Senate. Justice Minister David Lametti says the bill, tabled Thursday morning, will scrap Criminal Code provisions that ban gambling on single games of football, hockey and other sports to reclaim for casinos some of the $14 billion lost annually to the.

1. Single Game Sports Betting In Canada
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3. Single Game Sports Betting Meaning
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News broke last week that single-game sports betting was all but a done deal in Canada. It’s exciting for a country long forced to choose between playing parlay cards or choosing any number of largely unregulated alternatives.

Even before the announcement of an upcoming government-introduced bill, DraftKings CEO Jason Robins talked on the company’s earnings call about the potential growth into Ontario, which would be the sixth-biggest state if Canada were part of the U.S.

The single-game sports betting bill would represent a departure from the country’s long-established ban on single-game betting. Though it is not a done deal yet, it appears likely to pass, finally.

Background on Canada ban on single-game betting

The criminal law system in the United States is split between federal and state jurisdiction. In the realm of gambling regulation, jurisdiction has historically rested with the states, with some notable exceptions like the Wire Act and PASPA.

However, in Canada, the federal government has principal authority in establishing criminal laws throughout the country. Provincial authorities maintain the ability to regulate minor offenses, dubbed provincial offences.

Though not a perfect analogy, one can think of the Canadian federal government as having authority to regulate felonies, while the provinces have the ability to oversee misdemeanors.

Section 202 of the Criminal Code of Canada is the law that currently bans the operation of gambling businesses and forbids single-game sports betting. Section 204 of the Criminal Code created the exceptions that allowed for the parlay-style system that has become popular across the country.

Time for a change?

The last major change to Canadian gaming laws came in 1985. The adoption of single-game sports betting is a position that has been pushed several times in recent years. Indeed, members of parliament from the Windsor area pushed aggressively to legalize single-game sports betting during the early days of the Christie lawsuits in NewJersey.

The opposition to legalization came from many of the same parties who sued the state of New Jersey to oppose the legalization efforts in the Garden State.

Back in 2012, many of the major U.S. sports leagues and the NCAA (who has a single member institution in Canada) sent last-minute letters reiterating their greatest hits about why they oppose single-game sports betting to members of Canadian Parliament. That effectively killed bill C-290, which had nearly skated by to its final reading without much opposition.

The 2012-2013 effort was only the first of a number of recent efforts often initiated as private members bills, which historically have little chance of passing, though single-game betting had more support than most private member bills. Even the most recent effort appeared to start as a private members bill until Federal Justice Minister David Lametti introduced legislation seemingly aligning nearly all major government parties in favor of legalizing single-game sports betting.

Legal single-game betting a game-changer?

The hope with single-game betting is that it will provide a boost to the economies of the various provinces that offer the contests when allowed. An economic jump-start for the casino industry in the border city of Windsor has long been a catalyst for the region’s politicians supporting the expansion initiatives.

That issue becomes more pressing with the city’s neighbor, Detroit, having a casino industry that has now legalized Michigan sports betting.

Of course, the success of single-game sports betting is going to depend a lot on what the market looks like, much like we have seen with the rollout of sports betting around the U.S. Some jurisdictions have had great success, whereas others have built systems that are built with obstacles to success, effectively limiting revenues to the state.

What to expect when expecting sports betting in Canada

The first area where single-game sports betting in Canada may appear different (at least at first) than much of the United States is that the provinces currently operate monopolies on the provincial gambling operations.

Not only do the provincial lottery and gaming authorities control the current parlay sports betting offerings across the country, but they also control the casinos and online poker in the province of Quebec.

While the Ontario provincial government released a budget that would allow for private entities to enter a new iGaming space with potential inclusion of sports betting under the umbrella, this has not yet played out. The move would see iGaming fall under the jurisdiction of the province’s Alcohol and Gaming Commission, which oversees a variety of industries including aspects of the horse racing industry and Ontario’s legal cannabis stores.

Not the first rodeo for Canadian iGaming

Single Game Sports Betting In Canada

The idea of establishing an iGaming market previously appeared in the 2019 budget. The process of building an iGaming market in any of the province is likely to be lengthy, with stakeholders on both sides likely to engage in a heated debate.

Ontario, in particular, has a history with efforts to bring privatization to government monopolies (called Government Business Enterprises) that has long been a sore spot, including the privatization of the 407 toll-highway for $3.1 billion in 1999, which in 2019 was valued at more than $30 billion and has been called one of the worst deals ever made.

While this effort would effectively create a new market, as opposed to privatizing an existing market, it is uncertain how this will play out and if it would generate a different reaction.

Private eyes?

Efforts to privatize Ontario’s provincially run monopolies like the LCBO (provincially owned and operated liquor stores) have appeared periodically over time; in fact, both liberal and conservative governments have floated the idea at various times.

Ontario faces a challenge with a recently projected budget deficit of more than $38 billion in 2020 and another $33 billion projected in 2021. Historically, various provincial leadership regimes have looked at privatizing government-owned monopolies like the LCBO and the Ontario Lottery and Gaming Commission (OLGC) to shore up stretched budgets. But this plan is different from traditional models of privatization.

Time will tell whether the Ford government is able to follow through on this aspect of the budget, but it could allow for a U.S.-style online gaming marketplace that includes sports betting if the pieces fall into place.

Room for partners?

Free Betting Games

Even without a ‘free market,’ there could still be room for private enterprises to participate.

If the iGaming market does not develop immediately and sports betting is instead under the oversight of the OLGC, there might still be room for partnerships.

Ontario previously worked with Caesars World to build and operate a casino as a joint venture, though the province maintains ownership. A similar type of deal could conceivably be possible for sports betting products should the provinces choose to depart from their current sports-based branding of Proline in Ontario, the WesternCanada Lottery provinces and Atlantic Canada, Sports Action in British Columbia, and Mise O Jeu in Quebec.

The other key area for development is the expansion of mobile betting. Provincially-regulated online gaming in Canada remains nascent and has room for growth. A number of provinces still do not allow for the placing of parlay bets online, though both Quebec and British Columbia do allow for wagering online via the lottery retailer websites.

Change is coming for sports betting in Canada

After spending years being unable to legalize single-game sports betting, Canada appears poised to finally cross that bridge.

An effort that began as an opportunity to gain a competitive advantage and provide a different product offering in border cities than was available on the U.S.-side has transformed into a need to remain competitive with the products being offered south of the border and through offshore competitors.

While single-game sports betting appears poised to finally be coming to Canada, now with the support of nearly all major professional sports leagues, there are remaining questions as to just what it will look like when it arrives.

TORONTO—Bill C-290, an Act to amend the Criminal Code, which will allow wagering on the outcome of a single sporting event, has certainly attracted a lot of attention recently. The bill was passed unanimously by the House of Commons at third reading after hearings before the House Justice Committee, and has passed first and second reading in the Senate, and earlier this month was passed by the Senate Committee on Legal and Constitutional Affairs Committee after extensive hearings, and reported back to the Senate for third reading debate.

The federal minister of Justice has received letters from five provincial governments requesting the amendment, including British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario. The provinces of Quebec, Prince Edward Island, and New Brunswick have also indicated support.

The Senate committee sought the views of experts from the regulatory, legal, law enforcement, academia, responsible and problem gambling fields, the International Olympic Committee, and from representatives of North American sports leagues.

The experts included a past chair of the International Association of Gaming Regulators, lawyers recognized by Best Lawyers in Canada as leading practitioners in gaming law, current and former senior officers from the Ontario Provincial Police, a professor of psychiatry from McGill University, and the chief executive officers of the Responsible Gambling Council and the Ontario Problem Gambling Research Centre.

To a person, all the experts supported the legalization of single event sports betting and passage of Bill C-290—from the aspects of consumer protection, social policy, problem gambling treatment, crime prevention, law enforcement and the ability to detect attempts to fix the outcome of sports events.

Their testimony made the following points: Single-event sports betting in Canada is a huge business; estimated to be in excess of $10-billion annually (and as much as $40-billion) and conducted illegally through bookies by organized crime; and $4-billion through offshore internet sites that are not regulated by Canadian provincial regulators.

Betting on sports is widespread throughout all stratas of Canadian society, and viewed by those betting as either a victimless crime or no crime at all.

Experience shows that if a legal alternative is made available, the overwhelming majority of bettors will patronize it, and that it significantly diminishes illegal activity and consequent revenues to organized crime.

Single Game Sports Betting Meaning

Legalizing gaming makes it easier to build in responsible gambling controls.

Single-event betting is legal in Great Britain, much of Europe, Australia, Nevada, and regulated online gaming sites.

Being able to see who is betting how much and on what greatly enhances the ability to detect attempts of match fixing.

Moving billions of dollars from the underground and offshore economies to the legal domestic economy will provide additional resources to support and sustain programs such as health care and education.

The IOC stated in its submission to the Senate Committee that, “The IOC has adopted a proactive approach by creating a Working Group on Irregular and Illegal Betting in Sport, comprised of representatives of the sports organizations, governments, betting operators, and international organizations such as the United Nations Office on Drugs and Crime, The European Union, the Council of Europe and Interpol, in order to define a common approach and position on the matter.”

Among the working groups approved recommendations are: “…to establish an information exchange between existing national sports betting regulatory authorities…the creation of a common monitoring or information exchange system among the various sports betting operators; and the sharing of information with national regulators, international organizations (such as Interpol) and betting operators…and encourage states that have not yet done so to pass legislation that allows for irregular and illegal sports betting to be combated effectively.”

In contrast, the sports leagues insisted that legalizing sports betting would lead to attempts to fix the outcomes of games, which could be true if no sports betting was currently taking place—but we all know that isn’t the case.

They have a point in saying that criminal elements have in the past attempted and continue to attempt to fix the outcome of games. What they seemingly fail to either understand, or more likely, concede, is that bringing the betting above ground, as has been done in Great Britain, Europe, Australia, Nevada, and regulated-online gaming sites, brings to light unusual and questionable betting patterns, or even single bets, that can be and are investigated. This is exactly how the reported match-fixing over the last few years has been detected.

The professional leagues offered no alternatives or solutions and failed to admit the volume of wagering already occurring illegally on their games.

Doesn’t it make sense to offer a legal, regulated environment with proper consumer protection measures? The alternative is to continue to allow organized crime and offshore online operators take billions of dollars out of the Canadian economy.

Bill Rutsey is president & CEO, Canadian Gaming Association.

The Hill Times

Bill Rutsey
CEO, Canadian Gaming Association

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