and NBA as well as European soccer and college football. Xavier Etienne, FDJ, Executive Vice President and CEO of FDJ Gaming Solutions categorised the move as a “key achievement for FDJ group” as it has “strong ambitions to develop its betting services in North America.”
Changes to Canada’s gambling laws mean that there has been a flurry of announcements and mounting speculation over deals made between provincial lottery operators and sports betting companies. Te BCLC has already appointed Genius Sports as the official data provider for its sportsbook operations. More deals will likely follow.
PlayNow.com, which is British Colombia’s only legal gambling website, announced that it would allow players to wager on the outcome of a single game or match. Alberta Gaming, Liquor & Cannabis (AGLC) said that it would add sports betting, including single-event options, to the website later in 2021.
WHY NOW?
While single-event sports betting will improve provincial revenues this is not, according to Don Bourgeois, Principal of Gaming & Regulation Group Inc, the main reason why the government decided to change its gaming laws. In fact it was the need for stronger regulation not more revenue that provided the real impetus for change.
Governments in the past have attracted bettors from other ‘grey markets’ by providing a safer quality product that also appeals to the customer. Doing so may take time - for example, in the case of cannabis, there has been a gradual but notably shift to lawful retailers of cannabis from illegal operations over the last few years since legalization.’
Amendments to the Criminal Code do not mean an end to state monopolies over sports betting. Nine out of the ten provinces will still retain their sports betting monopoly. Only Ontario will allow for an open market having created an agency called iGaming Ontario, which will create a system to license and regulate private gaming operators.
“Ontario as of December, will also have competition from ‘grey market operators’ who have agreed to carry on their activities as suppliers to the new iGaming Ontario corporation that will be an independent part of the Alcohol and Gaming Commission of Ontario,” Mr Bourgeois explained. “Te intention is to shift grey market operators and their customers to the competitive, but regulated market that is consistent with the ‘conduct and manage’ legal requirements in Canada. Tese operators will be paid a commission for providing their services to iGaming Ontario.”
“Te intention is to shift grey market operators and their customers to the competitive, but regulated market that is consistent with the ‘conduct and manage’ legal requirements in
Canada. Tese operators will be paid a commission for providing their services to iGaming Ontario.”
Don Bourgeois Principal of Gaming & Regulation Group Inc.
“Tere will be an increase in revenues and, of course, revenues is an important factor for governments at any time. However, the driving factors seem more to be regulating and making clearly lawful activities that Canadians are doing in any event and to establish a regulatory regime that ensures integrity and responsible gambling and prevents money laundering and fraud.”
Regulating the sportsbetting market will not happen overnight. Mr Bourgeois, who has over 25 years of experience in the gaming sector and was previously General Counsel for the Alcohol and Gaming Commission of Ontario, says that the provincial governments will make their own decisions on what type of gaming will be permitted and, consistent with the Criminal Code, ‘who’ may be involved.
Not all provinces currently permit online gambling - although most will likely do so as this sector continues to develop he says. “Most will offer the service directly through their Crown corporations, which have the lawful authority to ‘conduct and manage lottery schemes.’
P58 WIRE / PULSE / INSIGHT / REPORTS
Canada offers a large number of entry points for gambling companies. “Tere are multiple opportunities. First is, of course, as a supplier to the Crown corporations and in the case of Ontario that includes a more flexible approach through iGaming Ontario. Second grows out of the business development opportunities in locating the business in Canada. Canada has the ingredients that are necessary to be successful for online businesses, including staffing, government support programmes, infrastructure, and so forth.”
How much is channelled to the regulated markets depends on a number of factors including, tax rate and the sports betting offer to consumers. How taxes on sports betting in Canada will work will vary though.
“Because of the unique legal construct in Canada which requires the government or its Crown Corporation to ‘conduct and manage lottery schemes,’ the concept of ‘tax rate’ is more complicated. Te Crown corporations may also operate the sports and event wagering directly, such as OLG (Ontario), Loto-Quebec (Quebec) and
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