CGA Message-Fall 2011

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Richard Swayze

Message from the CGA - Archives

Legalizing single event sports betting – the process begins in earnest

Fall 2011


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As expected, Joe ComartIn, the New Democratic Party House Leader, introduced a Bill (C-290) to amend the Criminal Code to allow single event sports betting on September 28, 2011. The first hour of debate at Second Reading took place November 1, with a second hour of debate and the Second Reading vote expected to take place on or around December 13. However, as during the first hour of debate (on November 1) many Members of Parliament spoke in favour of the Bill (from the perspectives of both law enforcement and economic development), Mr. Comartin--sensing strong support from all parties--called for the vote on the Bill, and with consent of the House of Commons it passed Second Reading and was referred then and there to the Justice Committee for consideration. In so doing, Mr. Comartin fast-tracked the process by at least 30 to 45 days.

Canada has enjoyed legalized parlay-style sports wagering for many decades, but the current restriction, which prohibits wagering on a single sporting event, does not reflect the modern reality for sports bettors. With the passage of this Bill, Canadians will have a legal and regulated product for wagering on the individual sporting events of their choice.

The reality is Canadians are wagering on sports predominantly through illegal means, either with bookies or online. This Bill will enable sports wagering to occur in safe, regulated environments. A review of the annual reports of the Criminal Intelligence Services Canada (CISC) indicates that illegal bookmaking exists in all regions of Canada, with organized crime ultimately profiting from the revenue. While the size of the Canadian market is unknown, estimates suggest it is in excess of $10 billion

annually. The growth in wagering on sports through the internet has significantly increased over the past decade, with estimates showing Canadians wager in excess of $2 billion annually through offshore sports books.

A recent report by the Canadian Gaming Association on the impact of sports wagering on Ontario border casinos (Single-Event Sports Wagering in Canada – A Case Study: Border Commercial Casinos in Ontario) cites the facts set out above and highlights the benefits of offering a legal regulated sports wagering product in the Ontario border casinos of Windsor and Niagara Falls. The potential benefits generated by additional visits from U.S. patrons include the creation of up to 250 new jobs directly in the two casinos, and economic benefits in the broader community.

Examining the effect of Super Bowl weekend on the Las Vegas economy is instructive in this regard. Though sports wagering in Nevada accounts for only approximately 1% of the total amount gambled annually in the state, Super Bowl weekend in Las Vegas is one of the busiest of the year. In 2011, $87 million was directly wagered on the Super Bowl. More importantly, the Las Vegas Convention and Visitors Authority estimates the weekend attracts 250,000 additional visitors who generate an economic impact equal to or greater than the amount wagered on the game.

Legal sports wagering would be a significant attractor for communities with casinos; there are more than 100 million U.S. residents within a 6-hour drive of a Canadian casino. The only beneficiaries of the current legal framework are illegal offshore operators, bookies, and organized crime.

Now is the time for political action from the grass roots- -for everyone to contact their Member of Parliament and let them know that this is a Bill worthy of their support.