Thank you. Good morning, Mr. Chairman and honourable members. Thanks for inviting us here to appear before your committee.
I'm the CEO of the Canadian Gaming Association. With me is Paul Burns, our vice-president of public affairs.
Our association represents the major participants in Canadian gaming—facility operators, equipment manufacturers, and service providers. We sponsor research and speak out on important national and regional issues.
I have participated in gaming from both the private and public sector perspectives for more than 20 years, including assisting in the creation of gaming policy and casino development in Ontario, Nova Scotia, and New Brunswick.
As practice leader of the Coopers and Lybrand—now PricewaterhouseCoopers—Gaming Consulting Practice, I advise numerous private and public sector clients, including the Ontario government, and I authored the “Ontario Casino Market and Economic Impact Study”, the blueprint for the Ontario casino gaming industry.
As the CEO of private sector companies, I developed and managed gaming businesses in Ontario, Las Vegas, and internationally, and have been licensed by gaming regulators in Nevada and Ontario. I regularly comment on gaming issues in media and before government.
We're here today to speak in support of Bill C-290, an act to amend the Criminal Code that will allow wagering on the outcome of a single sporting event, and to answer any questions you may have.
As Joe pointed out, Canada has enjoyed legalized, parlay-style sports wagering for many decades, but the current restriction that prohibits wagering on a single sporting event does not reflect the modern reality for sports betters. 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 Canadian Gaming Association has supported this initiative since it was raised by the Government of Ontario about three years ago and supported on the record by other provinces, including British Columbia, Alberta, and Saskatchewan. Since then we've met with numerous members of Parliament from all parties, as well as many senators, to discuss the merits.
The issue is seen by most as a tool of both law enforcement and economic development, as well as simply catching up with what Canadians are already doing. The reality is that 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, either in physical facilities or online.
A review of the annual reports of the Criminal Intelligence Service Canada indicates that illegal bookmaking exists in all regions of Canada, with organized crime ultimately profiting from the venture. 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 that Canadians wager almost $4 billion annually through offshore sports books. Passage of this bill will allow: a legal and safe alternative for Canadians to do what they already are doing through illegal channels; for provincial agencies to compete online on a level playing field; for a product of competitive differentiation for gaming properties located at or near the U.S. border; and for the diversion of moneys from the underground economy. It's just good public policy to have the law catch up with what so many Canadians are doing and not simply treat them as miscreants.
For provinces that operate online, it can complete their offerings and eliminate the competitively disadvantageous environment in which they currently operate. Sports betting comprises approximately 40% of all online gaming activity, so right now Canadian provinces operating online just don't have a product for 40% of their potential clients.
It will be a potentially significant competitive factor for border and near-border properties. When people come to bet on sports, they often stay to watch the game. If so, they consume food and beverages, may play some blackjack or slots, and may stay overnight. If they bring their spouse, then even more ancillary revenues are generated.
A recent report we commissioned on the impact of sports wagering on Ontario border casinos highlights the benefits of offering a legal, regulated sports wagering product in the Ontario border casinos of Windsor and Niagara Falls. The potential benefits created by additional visits from U.S. patrons include up to 250 new jobs directly in the two casinos, as well as generating economic benefits in the broader community.
Right now the only beneficiaries of the existing situation are offshore operators, bookies, and organized crime. It makes eminent sense to turn off the tap to such a source of funds for the bad guys and to make it available to provincial governments to help fund programs and services for the general good.
From a tourism and economic development perspective, it's a no-brainer. With more than 100 million Americans within a six-hour drive of a Canadian casino and existing U.S. federal law explicitly prohibiting sports wagering where it doesn't already legally exist—which is essentially Nevada—single-event sports betting can be a significant attractor, especially during times and events like March Madness, the NFL and NBA playoffs, and the Super Bowl.
And remember, the revenues from single-event sports betting already exist and continue to grow. The interest in betting on sports is significant and pervasive. Ordinary people, our neighbours and friends, bet on sports every day. Under the existing law, this makes them complicit in illegal activities. These people aren't criminals, and what they are doing is legal in many other countries around the world.
It really is time to catch up with what Canadians are doing and, more importantly, take that money away from the bad guys and make it available for the public good. Not only does it make sense, it's just the right thing to do.
Thank you. I will be happy to answer any questions you might have.