People make bets in the sports book at the South Point hotel and casino in Las Vegas. Nevada. (John Locher/AP)

People make bets in the sports book at the South Point hotel and casino in Las Vegas. Nevada. (John Locher/AP)

Canada’s proposed sports betting law could generate taxes, protect consumers: experts

A private member’s bill passed by the House of Commons on Thursday would legalize putting money on a single sports game

Canadians should soon be able to place a wager on the outcome of an NHL game thanks to what experts say is an overdue change to the country’s laws on sports betting.

A private member’s bill passed by the House of Commons on Thursday would legalize putting money on a single sports game. Currently, people skirt the law by using offshore betting services to place wagers.

Modernizing the legislation is “long overdue,” said Tom Mayenknecht, a Vancouver-based sports marketing expert.

“It’s impossible in this era to police people betting offshore,” he said. “So this way, it keeps more of the money in Canada, both in terms of where it’s being spent and then secondly, the investment of a share of the proceeds back in the community.”

Canada’s current sports betting legislation is “ancient,” and loosening the rules would be similar to changes the federal government made around cannabis in 2019, said Michael Naraine, an assistant professor of sports management at Brock University.

“Obviously for a very long time, everyone was like `cannabis is bad.’ But people were users of cannabis. It wasn’t that it was just magically removed from the country. People were smoking and using cannabis,” he said.

The federal government changed the laws around cannabis not only to generate tax revenue, but to educate the public on responsible use, too, Naraine said.

“Rather than punishing the consumer who’s already doing it, embrace the activity but do so in a way that you can provide them choice but also, more importantly, education.”

How, exactly, new-look sports betting would work in Canada remains to be seen. If passed by the Senate, Bill C-218 would give the provinces and territories full jurisdiction over single-event betting.

Each province and territory would likely do things slightly differently, said Paul Burns, president and CEO of the Canadian Gaming Association.

Some may run their own betting services while others will dole out licenses to sportsbook companies like FanDuel or DraftKings. A province could also opt for a hybrid model.

“This allows the regulated industry in Canada to catch up and play on a level playing field,” Burns said.

Currently, Canadians can only place parlay bets that cover multiple games. But that isn’t appealing to many want-to-be bettors, who can turn to about 2,000 offshore websites, many of which are not well regulated, said Burns.

“We get calls to our offices from people who have trouble getting their money out of sites,” he said.

Each year, Canadians are betting about $4 billion through offshore sports books and another $10 billion through operations in Canada run by organized crime, Burns added.

The idea behind parlay betting was that it would help prevent corruption and collusion in professional sports, said Naraine.

“Now sports integrity is a lot more enshrined. We have a lot more confidence in sports integrity,” he said. “We’ve got the numbers, we’ve got the data, we’ve got cameras everywhere. It’s so difficult to be corrupt in sport now.”

The NBA, NHL, MLB, MLS and CFL all signed on to a joint letter last June supporting the changes to legislation.

Mayenknecht said the leagues recognized that single-event sports betting could be a “massive” new source of revenue.

The biggest chunk of cash will come from commissions or licensing fees on the actual wagers, Mayenknecht said, but the leagues will also be looking at future opportunities.

He sees a day in the not-so-distant future when fans will be able to walk up to a window outside an arena or a kiosk on the concourse to place a bet on the outcome of a game. He noted that the Phoenix Suns announced earlier this year that they’re working with FanDuel to create a “betting lounge” in their home arena.

Leagues also know the new legislation will open opportunities for new sponsorships, Naraine said. After exhausting the traditional avenues like official coffee and official vehicle, teams are looking to branch out into new areas like computer technology and ride sharing, he said.

“These are categories that didn’t exist 10 years ago. And one of those categories is also a sports gaming operator,” he said.

One industry knows the impact of Bill C-218 won’t be entirely positive. The new legislation will hurt the horse racing industry, said Jim Lawson, CEO of Woodbine Entertainment.

“There’s no question in my mind, even now, that sports betting is going to cannibalize our mutual wagering dollar in Canada,” he said. “As you let people wager on sports, (the horse racing industry) is going to lose a lot of those customers to sports betting. There’s only so many sports betting dollars available.”

Woodbine pushed for an amendment that prohibits fixed odds wagering on horse racing, and Lawson said the ensuing change will help limit the impact to his industry.

“I think (the legislation) is a good thing for the country,” he said. “It’s going to generate revenue and largely, but not completely, replace a grey market that does exist.”

Lawson said Woodbine has already been approached by companies looking to create partnerships as Canada’s sports betting landscape shifts. They like that Woodbine already has infrastructure in place, he said, from anti-money laundering systems to responsible gaming programs to a mobile app.

The legal changes are unlikely to completely shutter offshore betting websites, Lawson said.

“What it will do is it will bring most of the major players into Canada, operating legally, regulated and paying taxes,” he said.

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Just Posted

FILE – Perry Bellegarde, National Chief of the Assembly of First Nations, takes part in an event on Parliament Hill in Ottawa on Tuesday, July 7, 2020. THE CANADIAN PRESS/Sean Kilpatrick
Indigenous Peoples Day must be a ‘call to action’, says Assembly of First Nations chief

Discovery of children at Kamloops residential school site must lead to change, Perry Bellegarde says

lotto max logo
Are you the lucky winner?

A $1 million ticket was bought in Burns Lake for Friday’s Lotto… Continue reading

Jill Mackenzie carefully replaces books on the shelves at the Houston Public Library. (Angelique Houlihan photo)
District approves annual library grant

Craft kits featured for summer reading club

The tradition of Houston Christian School grads giving Bibles to incoming kindergarten students will take place this year, but outdoors and in a modified fashion. (File photo)
Houston Christian School grad day is June 24

Grads themselves have set tone for the day, says teacher

Scott Richmond will be starting as the new vice principal for HSS and TSE. (Submitted/Houston Today)
Houston gets a new vice principal

Scott Richmond takes over from Dwayne Anderson who moved to Smithers

The border crossing into the United States is seen during the COVID-19 pandemic in Lacolle, Que. on February 12, 2021. THE CANADIAN PRESS/Paul Chiasson
VIDEO: Border quarantine to soon lift for fully vaccinated Canadians

Eligible travellers must still take multiple COVID-19 tests

Chilliwack secondary school’s principal is apologizing after a quote equating graduation with the end of slavery in the U.S. was included in the 2020-2021 yearbook. (Screenshot from submitted SnapChat)
B.C. student’s yearbook quote equates grad to end of slavery; principal cites editing error

Black former student ‘disgusted’ as CSS principal apologizes for what is called an editing error

Skeena MLA Ellis Ross. (Photo by Peter Versteege)
BC Liberal leadership candidate condemns ‘senseless violence’ of Okanagan church fires

Skeena MLA Ellis Ross says reconciliation isn’t about revenge for past tragedies

A coroner’s inquest will be taking place at the Capitol Theatre in Port Alberni for the next week. (ELENA RARDON / ALBERNI VALLEY NEWS)
Teen B.C. mom who died following police custody recalled as ‘friend to many’

Police sent Jocelyn George to hospital after intoxication had gone ‘beyond the realm’ of normal detox

FILE - In this Nov. 29, 2020, file photo, Las Vegas Raiders defensive end Carl Nassib leaves the field after an NFL football game against the Atlanta Falcons in Atlanta. Nassib on Monday, June 21, 2021, became the first active NFL player to come out as gay. Nassib announced the news on Instagram, saying he was not doing it for the attention but because “I just think that representation and visibility are so important.” (AP Photo/John Bazemore, File)
Nassib becomes first active NFL player to come out as gay

More than a dozen NFL players have come out as gay after their careers were over

Penticton Indian Band Chief Greg Gabriel speaks to the Sacred Hearts Catholic Church burning down early Monday morning, June 21, 2021. (Monique Tamminga Western News)
Penticton band chief condemns suspicious burning of 2 Catholic churches

Both Catholic church fires are deemed suspicious, says RCMP

COVID-19 daily cases reported to B.C. public health, seven-day moving average to June 17, 2021. (B.C. Centre for Disease Control)
B.C.’s COVID-19 infections drop to 90 on Sunday, 45 Monday

Pandemic spread dwindles as 77% of adults receive vaccine

By protesting uninvited in First Nations’ territories, conservationists are acting in a neocolonial or paternalistic manner, says Huu-ay-aht Chief Robert Dennis. Photo by Heather Thomson
A closer look: do Vancouver Island First Nations support the war in the woods?

First Nations/environmentalist old growth alliance uneasy, if it exists at all

A blood drive in support of 1-year-old Rielynn Gormley of Agassiz is scheduled for Monday, June 28 at Tzeachten First Nation Community Hall in Chilliwack. Rielynn lives with type 3 von Willebrand disease, which makes it difficult for her to stop bleeding. (Screenshot/Canadian Blood Services)
Upcoming blood drive in honour of Fraser Valley toddler with rare blood condition

The Gormley family has organized a blood drive in Chilliwack on June 28

Most Read