Bill C-290 (Historical)

An Act to amend the Criminal Code (sports betting)

This enactment repeals paragraph 207(4)(b) of the Criminal Code to make it lawful for the government of a province, or a person or entity licensed by the Lieutenant Governor in Council of that province, to conduct and manage a lottery scheme in the province that involves betting on a race or fight or on a single sport event or athletic contest.

Concurrence in Vote 1—The Senate

[Michael Chong, Conservative, Wellington—Halton Hills, ON]

Mr. Speaker, a number of times during the debate about the vote 1 for Senate funding, the issue of Bill C-290 has been raised. I want to put on the record that the Senate should review this bill, and in my view should defeat this bill.

That bill, when it was in front of this House of Commons, did not receive a standing vote at second reading. In fact, what transpired on Friday, March 2, 2012, was that the House leaders worked together to force debate to collapse before the full two hours of third reading had transpired, preventing members like me from “standing five” to request a full standing division on that piece of legislation.

That bill did not receive sufficient scrutiny in this House of Commons. It went through one hour of hearing at committee with the Canadian gaming commission. That is the reason for which we have a Senate. It is the chamber of sober second thought that ensures the decisions made by this House are double-checked by the upper chamber.

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, I would like to ask my colleague a question regarding Bill C-290, which is a bill he supported and voted for in the House of Commons.

The Conservatives supported Bill C-290, but it has been stalled in the Senate for more than a year and a half. The democratic will of the House of Commons passed this bill with no dissension. No Conservative spoke or voted against the bill. However, it was moved to the Senate and it has not gone forward in a year plus.

The bill was in regard to the nefarious operations of organized crime overseas and would have ensured that we had legalized single-sport betting under the rule of government.

Where does the member stand on that with regard to the Senate that has not passed this bill in one and a half years?

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, the hon. member voted in favour of Bill C-290, the sports betting bill, which has been languishing in the Senate for more than one and a half years.

Why has the bill not been passed by the Senate when the House of Commons passed it unanimously with no dissent, no objections, and no one speaking from the opposition? Why has the bill not been passed?

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, my colleague has mentioned a couple of bills that have been in the Senate that were not passed but were passed in the House of Commons.

Bill C-290, a single sports betting bill, was passed in the House of Commons unanimously on Friday. A number of members on the Conservative side chose not to speak to the bill or stand up against it, but when the bill went to the Senate, they actually tried to undermine it. Now we have a situation where organized crime and offshore betting sources will have support against a bill that would balance the system.

I would like my hon. member's opinion on the fact that we have a bill that was passed in the House of Commons, with no objection, because no member stood up and voted against it, but it still has not passed the Senate.

Justice

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, the Conservative government jumps on every opportunity it has to shut down debate. If it is not closure motions, it is letting bills die in the Senate.

Over a year ago, a private member's bill, Bill C-290, that would sustain and grow the largest sector of the entertainment industry in Canada was passed by the House of Commons and sent to the Senate.

As of now, the Senate has not passed the bill.

Why is this bill, which passed the House of Commons with no opposition from any member, languishing in the Senate?

Sports Betting

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, for months now, an important bill that passed through the House unopposed has sat in the Senate penalty box waiting for a final vote at third reading.

Bill C-290 would legalize single events sports betting in Canada and is a game changer for the largest segment of the entertainment industry in Canada. With hundreds and thousands of jobs, massive public investment and billions of dollars of public revenue at stake, the government is a healthy scratch on Bill C-290, while the unaccountable Senate fumbles the ball.

In addition to all-party support in the elected House, both business and labour groups across Canada are fans of C-290. The government is blowing this call, turning a blind eye to a major interference penalty from a small group of unaccountable senators clogging up the progress on this critical bill.

Worse, by sitting this one out, bookies, gangsters and illegal online gaming sites rake in another season of windfall profits.

We know that in the past the government has pushed legislation through the Senate. Why is its approach so weak now on Bill C-290, just inches from the goal line?

An Act to Amend the Criminal Code (prize fights)

[Hoang Mai, NDP, Brossard—La Prairie, QC]

Mr. Speaker, I am pleased to rise today to speak to Bill S-209, An Act to amend the Criminal Code (prize fights).

I think it is important to start by making one thing perfectly clear about this bill. Everyone who has spoken about this bill today has said the same thing. The purpose here is not necessarily to promote a sport like mixed martial arts over another, but simply to update the Criminal Code to reflect current practices.

Personally, like many people from my generation, I was a Bruce Lee fan growing up, but that does not mean I wanted to go out and hit everyone just to be like him. However, I did take lessons that were very interesting. They gave me discipline and taught me to take care of my body. I was not going to hit everyone just for the sake of doing so or so that I could emulate Bruce Lee.

Things change and that is what we are seeing now, in a way. Mixed martial arts are a little more structured. This sport is quite new. The members of the Standing Committee on Justice and Human Rights had a chance to study the bill and many witnesses appeared before the committee, including members of the UFC.

I would like to point out that the UFC is a league. It does not necessarily represent the entire sport. It is a well-organized league. Georges St-Pierre, who is famous in Quebec, Canada and around the world is a member of that league. Again, I am not here to promote this sport, but to say that society has changed and adopted this sport.

At the federal level, the objective is to decriminalize this sport. We do not want to regulate it by proposing rules. We want to leave it up to the provinces to regulate it. In fact, that is what is happening now, even though the sport is technically illegal under the Criminal Code. Subsection 83(2) of the Criminal Code legalizes or decriminalizes boxing, but it does not cover sports like karate, kung fu or, in this case, mixed martial arts.

Our objective is to come up with a certain definition. I am not going to get into the details of that definition, because I think everyone agrees on this. There was no real discussion with regard to the amendments because we all agree on this point. A few questions were asked and the experts who came to committee answered those questions.

We are happy with this bill. I thank my colleague, the member for Chambly—Borduas and the NDP's sports critic. He has worked very hard on this issue.

What I am saying is that society is changing. More and more people are participating in this sport. Although the sport is prohibited under the Criminal Code, such events attract tens of thousands of spectators at places such as the Bell Centre in Montreal and bring in a lot of revenue. Toronto hosted the largest mixed martial arts event in Canada.

Once again, as my colleagues have said, this is not about promoting the sport. We simply want to look at the facts. The provinces already regulate the sport with certain protocols. For example, they require athletes to have a certain skill level. Not just anyone can walk into an arena to fight.

However, if we continue to ignore the facts and say that we are against mixed martial arts and do not want it happening in our backyard, nothing will change. The sport will remain a crime or remain technically illegal, and there will be a black market. That means that people will continue to fight, but the fights will not be properly regulated.

The purpose of the bill is to decriminalize this sport at the federal level and to let the provinces create their own regulations. Several provinces—though not all—have already developed regulations for this sport. However, things are evolving. This sport is very new on the international scene. We are seeing a change within Canadian society.

We know that the people of Quebec have accepted this sport. When there is a major public event, the police do not try to interfere or to stop it. Of course, I am not saying that everyone supports these sports. I am not a big fan myself. I would rather watch a Bruce Lee movie than see people fighting for real in a cage, something I find quite violent.

That being said, I am not passing judgment, and I do not necessarily wish for the federal government to intervene and decide that, based on its moral values, these activities are wrong and must be regulated and criminalized. Things have simply evolved.

The bill introduces legal changes to the Criminal Code. One change adds the word “feet” to a definition, in order to include some mixed martial arts sports. It reflects a societal change.

I will use karate as an example. My four- and seven-year-old nephews are both learning karate. This does not mean that they are particularly violent kids. On the contrary: their parents chose this sport as a way to direct their activities. That is exactly our message to the provinces: they can direct how these sports are practised. They have agreed to have these sports in their territory, so they should be responsible for regulating them.

Meanwhile, the federal government must make sure it does not create obstacles. It must also decriminalize these activities. We know that society has evolved, but the Criminal Code did not evolve in the same way. As a result, provinces may wonder whether they can regulate these sports. We have already seen cases where provinces worked around the problem, either by deciding to treat an event just like an ordinary boxing match or sport event, or by using other solutions. Provinces have tolerated the sport.

When we studied the bill in committee, all parties supported it because they saw it as a good option.

I would like to draw a parallel with another bill that was introduced. Bill C-290 addressed bets on individual events. I want to mention it because it was unanimously passed in the House. Unfortunately, the Senate has not gotten around to dealing with it yet. Now we have a bill from the other chamber. I am wondering how legitimate the Senate really is.

Bill C-290 was introduced by one of my NDP colleagues. The House agreed to it unanimously. Now it is at the Senate. People seem to be waking up. I even heard a Conservative member say that he did not know it passed and that he did not support it.

The bill is at the other chamber. I do not know what is happening with it. We heard that some Senators are not in favour of it. I am mentioning this because the same principle comes into play here. Certain provinces want to legalize both mixed martial arts and betting on individual events. It generates revenues. However, revenues are not the main argument. They simply want to legalize something that is currently illegal and take the money out of the black market and the underground economy.

Will not changing the Criminal Code immediately result in prohibition? Will that fix the problem? No. Society—be it the provinces, the people who watch the sport, or people in general—has changed and now accepts these sports.

I hope that Bill S-209, from the other chamber, will receive majority or unanimous support here. If the bill passes, we hope that Bill C-290, which was passed unanimously here, will make progress in the other, supposedly “wiser”, chamber. I put that in quotation marks because I am not entirely sure that is the case.

Opposition Motion--Senate

[Stéphane Dion, Liberal, Saint-Laurent—Cartierville, QC]

Mr. Speaker, institutional reform, if not done wisely, might create more bad than good. It is a well-known tenet of political science that tomorrow's political difficulties are often the result of today's ill-conceived institutional reforms.

I will show that this is exactly what will happen if the House makes the mistake of supporting the motion moved today by the hon. member for Toronto—Danforth on behalf of the NDP caucus. This motion urges the Government of Canada, in consultation with the provinces and territories, to take immediate steps towards abolishing the Senate of Canada.

Let us list all the problems that implementing this motion would cause. First, we would have to open the Constitution. In these times of economic uncertainty, where the governments in our federation have to work together to protect Canadians' jobs, the NDP is asking them to put a great deal of their energy into constitutional negotiations.

Second, the NDP must tell us whether it really believes that all the governments in our federation are willing to open the Constitution to deal solely with the issue of the Senate. If the NDP thinks that is true, then I suggest they go talk to the current Government of Quebec.

As Professor Benoît Pelletier, from the University of Ottawa, said to Hill Times on February 18, 2013:

I don't see the abolition of the Senate to be something that would get the approval of all the necessary provinces that would have to give their approval. I'm sure that different provinces, including Quebec, would like other subjects to be discussed at the same table. We would eventually get something as large, as wide, and as substantial as the Meech Lake Accord or even the Charlottetown agreement.

The NDP may want a new round of mega-constitutional negotiations, but Canadians put constitutional talks at the bottom of their current priorities, and rightly so.

Third, has the NDP taken into account the fact that the constitutional rule to abolish the Senate almost certainly requires the unanimous consent of the provinces? Most experts think that, if the 7-50 rule—seven provinces representing at least 50% of the population—is needed to change the nature of the Senate, then the consent of the House and the unanimity of the provinces is needed to abolish the Senate, and this would likely be confirmed by the Supreme Court.

In the February 18 edition of The Hill Times, Bruce Ryder, a professor at Osgoode Hall Law School, reminded us of this when he said that the support of 10 provinces was needed. In any case, I would like to remind all hon. members of something that has not yet been mentioned: the Parliament of Canada has passed regional veto legislation. The regional veto act would therefore have to be abolished so that none of the provinces would have the opportunity to veto changes to the Senate or its abolishment.

Fourth, since the NDP keeps saying that it wants to impose a costly referendum on Canadians on this issue, has the party considered what question should be asked and what majority would be required? A question that gives Canadians only one alternative—to abolish the Senate or not—would not do justice to the variety of opinions Canadians have about the Senate.

As for the majority required for abolition, is the NDP thinking of a simple majority at the national level? That will not do because the provincial governments and legislative assemblies that would have voted to keep the Senate would feel, with reason, that their constitutional duty is to have the wishes of their voters prevail.

So we are talking about a simple majority within each province. The probability of attaining such a majority 10 times from coast to coast is so low that you have to wonder why public funds should be spent on such a referendum.

Therefore, we see that abolishing the Senate would represent a major change to the federation, requiring the unanimous support of the provinces under the rules for amending the Constitution. This is very unlikely to happen. As a matter of fact, only three provinces have indicated they are currently in favour of abolishing the Senate.

I think the best conclusion we may reach on this ill-advised motion is the one given by Peter Russell, Professor Emeritus at the University of Toronto. He was quoted in Hill Times on February 18, 2013. Dr. Russell said:

They [the NDP] really haven't done much homework on the pros and cons of bicameralism. I don't know if they honestly know how to spell the word.

Professor Russell said this. Indeed, if we followed the NDP's plan, Canada would become the only large federation in the world to have a single federal chamber. If we were to lose our upper chamber, then we would also lose the useful role it plays in our political system, which benefits Canadians, particularly the regions and minorities.

This is precisely the role that the Fathers of Confederation set out for the Senate, the role of sober second thought. Since senators are not elected, they play their role with moderation and almost always give the elected chamber, the House of Commons, the last word.

However, with sober second thought, senators can detect mistakes and inaccuracies, and can ask members to amend their bills in the interest of taxpayers and citizens.

Allow me to cite some recent examples of sober second thought executed by our colleagues of the other chamber. In 2006, the House accepted 55 Senate amendments to improve the Federal Accountability Act. In 2008, the Senate convinced the government not to proceed with changes to the Canadian film tax credit. It was an infamous censorship provision that would have allowed the minister to deny a film tax credit where it would be, according to the minister, contrary to a vague notion of public policy. There was a huge outcry from everywhere in Canada. Thank God we had a Liberal senator who saw the mistake and corrected it in the House.

It was in 2012, after rejecting Liberal amendments to the Safe Streets and Communities Act in the House, that the amendments were made in the Senate and then accepted in the House. Currently, the NDP bill, Bill C-290, an act to amend the Criminal Code (sports betting), is being carefully scrutinized by the Senate after a number of sports leagues and several provinces raised concerns that the House had failed to provide the necessary level of scrutiny before passing it.

As we see, the Senate has always provided useful amendments and clarifications to bills passed by the House, while rarely obstructing the general will of this chamber. In fact, between 1945 and today, I have enough fingers to count the bills passed by the House of Commons that were rejected by the Senate. The Senate performs an important checking role in the Canadian federation by providing an opportunity for sober second thought on bills passed by the House, a complementary chamber of scrutiny and amendment. This is precisely why the Senate was created by the Fathers of Confederation. It would be particularly unwise to abolish a chamber of scrutiny, since we are currently dealing with the most secretive government in Canadian history. What federal institutions need is more oversight, not less oversight.

For the Senate to properly fulfill its role as a chamber of sober second thought, the Prime Minister has to choose good senators who are exceptional because of their hard-working nature, rigour, expertise and moral strength.

Unfortunately, the Prime Minister has made some very dubious appointments. Instead of appointing highly qualified individuals, he has chosen some people whose sole qualification was as Conservative Party partisans. The Prime Minister is to be held accountable for these bad choices, not the Senate as an institution. The Prime Minister must also be held accountable for the constitutional mess that his own Senate reform would create. He wants to elect senators without changing anything else in the Constitution. Let me describe how much damage that would do to our country.

Many Canadians would like their senators elected rather than appointed, and that is understandable. It would be more democratic. However, what would happen if, as proposed by the Conservative government, we changed the way Senate seats were filled, without changing our Constitution accordingly?

If we went along with the Conservative Senate reform proposal, we would have: no dispute settlement mechanism between the Senate and the House if both were elected; continued under-representation of Alberta and British Columbia with only six senators each, when New Brunswick and Nova Scotia hold 10 senators when they have five to six times less than Alberta and British Columbia; U.S.-style, now Italian-style and Mexican-style gridlock between two elected chambers unable to solve disagreements; and bitter constitutional disputes regarding the number of senatorial seats to which each province would be entitled. Fortunately, the Supreme Court is likely to confirm that such ill-conceived Senate reform cannot be done unilaterally by an act of Parliament alone.

Therefore, first things first: will the provinces be able to reach an agreement on the distribution of senatorial seats? If they do, we can then figure out which constitutional powers we should attribute to the Senate in order to create healthy complementarities with the House rather than paralyzing duplication, after which we can agree on the process to elect senators and federally amend the Constitution accordingly.

Abolition of the Senate would represent a major change to the federation requiring the unanimous support of the provinces under the rules for amending the Constitution. This is very unlikely to happen. Furthermore, the Senate serves a useful function by improving or correcting bills that pass through the House.

As long as the provinces fail to agree on the number of senators to which each one is entitled, we must avoid the kind of constitutional chaos that an elected Senate would cause.

Instead, let us keep the Prime Minister accountable for the quality of the individuals he appoints to the upper house. Let the Senate continue playing the role conferred upon it by the Fathers of Confederation, the chamber of scrutiny and the chamber of sober second thought.

Criminal Code

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, the Liberal Party members support the passage of Bill C-290. We acknowledge that it allows for wagering on the outcome of single sporting events.

I want to add a few comments. I do this from a capacity that I used to have during the nineties when I was the critic for lotteries in the province of Manitoba. That was when casinos and betting really became a major part of the economic activity of not only the province of Manitoba, but shortly after other provinces started to pick up on it.

The member who spoke prior made reference to some of the social costs of gaming. There are some horrendous social costs to it. All we need to take a look at the makeup of our prisons, which ranges from gambling addictions to suicides. There are all sorts of issues which are related to the negative side of gaming. As provinces move more and more toward the gaming industry, and now this will just one component of the gaming industry, compensation or resources should be provided to fight some of the social costs of having a very active gaming industry.

Over the years, I have had many discussions with different stakeholders that have expressed their concerns. I appreciate the fact that the reason we are passing the bill is because it is in provincial jurisdiction. Therefore, I say this more as a concerned citizen and someone who has a casino located within Winnipeg North. It is known as the McPhillips Station Casino. I have first-hand experience with numerous complaints that have ranged from everything from bankruptcies to marriage breakups to suicides to crimes that have been committed. If managed properly, and that is the key, it can be a win-win. It does provide economic activity. It is a great form of entertainment. However, let us not lose sight of the fact that there is a social cost to this. We do have a role to ensure that the resources are there to support that. Earlier we were talked about educational programs. We encourage provincial jurisdictions to take the responsibility of promoting responsible gaming. There are far too many people's lives destroyed as a result of this industry every year, if not every day.

We support the bill because it is under provincial jurisdiction, but we want the government to be aware of the strong social costs of gaming. There is a burden of responsibility that governments at the provincial level have to take, in some cases more seriously, in order to prevent the damages caused by irresponsible gaming policy.

With those few words, we are happy to see it pass.

[Robert Goguen, Conservative, Parliamentary Secretary to the Minister of Justice]

Mr. Speaker, I will be speaking in favour of the private member's bill of the hon. member for Windsor—Tecumseh, Bill C-290, an act to amend the Criminal Code (sports betting), as amended by the Standing Committee on Justice and Human Rights.

Bill C-290 itself is very brief, being only two clauses long. Clause 1 of the bill would repeal paragraph 207(4)(b) of the Criminal Code. Clause 2, which is the standing committee's only amendment, is a coming into force clause that would see the bill come into force on a date to be fixed by order in council.

The repeal of paragraph 207(4)(b) of the Criminal Code would have the effect of permitting provincial governments to conduct and manage lottery schemes that involve bets made on a race, fight, single sports event or athletic contest.

Bill C-290 would leave it to each province or territory to decide whether to offer single sports event betting and, if so, whether to operate the betting by telephone, Internet and/or land-based locations. Such provincial-territorial decision-making is precisely what now exists in section 207 of the Criminal Code with respect to other forms of lottery schemes, such as video lottery terminals and slot machines.

For example, under the current lottery scheme provision of the Criminal Code, only a provincial or territorial government may conduct a lottery scheme that is operated on or through a computer, slot machine or video device. A province or territory may not licence others to do so. Some provinces currently place video lottery terminals and slot machines in a land-based location such as a casino or a race track or another location. Similarly, under Bill C-290, a province or territory could place a single sports event betting operation in a casino, race track or any other location it might choose.

Furthermore, under section 207 of the Criminal Code, a province or territory may also conduct a lottery scheme in co-operation with another province. We know that the provinces and territories, using this authorization, have worked together to offer such national ticket lottery schemes, such as Lotto 6/49. Similar inter-jurisdictional co-operation would be possible under the amendment proposed in Bill C-290 for single event sports betting. A province or territory could choose to work co-operatively with another province or territory as it sees fit.

As I have previously indicated, it is important to note that Bill C-290 would leave it to each province or territory to decide whether or not to offer single sports event betting, and if so whether to operate the betting by telephone, by Internet, and/or at land-based locations.

Conversely, it would be up to the provinces and territories to ensure that they consulted with sport organizations to ensure the integrity of the games on which single sports betting were offered, and it would also be up to the provinces and territories to consult with problem gambling service providers to ensure that single sports event bettors gambled responsibly.

On the issue of problem gambling, I would note that provinces in Canada have already dedicated major funding for the prevention and treatment of problem gambling. In this regard, the provinces are far ahead of their counterparts in the United States and, possibly, the world. Quite rightly, Canadian provinces have addressed problem gambling because they hold the constitutional legislative authority for matters relating to health, including problem gambling.

Provinces and territories have had many years experience in conducting a broad range of lottery schemes. It makes sense that the range of lottery schemes that they are authorized to conduct be expanded to include single sports event betting.

It would also make a lot of sense to keep Canadian gambling dollars within a province or territory rather than sending that money to illegal bookmakers in Canada, or to offshore Internet betting sites that poach Canadian bettors, regardless of whether those offshore sites are legal or illegal in another country. Bill C-290 would be a step in that direction.

I support private member's Bill C-290 and will be voting in favour of it. Provinces and territories certainly have the experience to offer this form of betting, it that is what their electorate wants. On the other hand, if a province or territory chooses not to go in that direction, that would be its local decision.

I see this private member's bill as responding to a growing demand and as modernizing the Criminal Code's lottery scheme provision to reflect our circumstances in the 21st century. That is the direction we want to take.

[Joe Comartin, NDP, Windsor—Tecumseh, ON]

moved that Bill C-290, An Act to amend the Criminal Code (sports betting), be read the third time and passed.

Mr. Speaker, the bill itself is a very small, short bill. It would delete one small clause of the Criminal Code that prohibits anyone from wagering on a single sports event. It has been long standing in Canada that we can place bets on multiple sports events. Most people who are like me tend to follow one team, know a lot about the one team and do not know a lot about other games in the same league. The bill would do away with that prohibition. It has been in the code for a long time. It goes back to English history.

There are two reasons for my pushing for this change and for the widespread support that it has garnered.

One is the economic development tool that it provides to communities, particularly those with existing casinos or racetracks and other gaming operations. We have heard from some provinces, as they are the ones responsible for deploying this tool, that they would be placing the operations at one of those centres, some more broadly and others on a more limited scale. We had a study done by the Canadian Gaming Association last summer and it showed, for instance in my region which has a very substantial commercial casino, that it would either save or create 150 to 200 new jobs. The same is true for the casino in Niagara. The focus on those two casinos is because we are immediately adjacent to the American border. A number of bets would be placed by our American neighbours because this practice is illegal in the United States, with the exception of Nevada. It would be a good economic tool that would draw gaming dollars in from the United States and potentially from other parts of the world, depending on how it is deployed.

The other major reason was the inspiration for the initiative. This gaming is going on now but it is almost exclusively offshore. In Canada it is completely controlled by, and is a major revenue source for, organized crime. We have estimates of billions of dollars being gained in Canada and tens of billions of dollars in the United States because it is illegal there. This would strike a blow against organized crime by taking revenue away from it. We know one of the major tools a government can deploy to fight organized crime is to take away financial incentive. This would help us do that. The extent would depend on how many provinces use this resource and to what extent they use it.

I want to acknowledge the support I have had for the bill. I want to start with members of Parliament from all of the parties. We have had very close to unanimous support for this, for both reasons that I have already cited: the economic development and the fight against organized crime. People understand that. Members of Parliament understand it and are supportive that this is a good step forward. I also want to acknowledge the work by provincial governments, particularly Ontario and British Columbia. They have been very strong. They have already been working up plans, if this bill goes through, as to how they would deploy it in their provinces. I want to recognize the Canadian Gaming Association. It has done a fair amount of the background on this, including the study I mentioned. I want to recognize the Canadian Auto Workers Union. It represents a number of people at some of the casinos across the country and it has also been very supportive in pushing this bill forward.

Finally, I want to recognize both the City of Windsor and the City of Niagara Falls. Their municipal councillors have passed resolutions in support of the bill.

With regard to the process, we are at third reading stage now. At second reading the bill passed with no opposition at all in the House. It went to committee. It was supported unanimously at committee with one amendment.

There are still some negotiations going on in consultation with some of the provinces. The government felt the need to hold off giving royal assent, assuming it gets through the House and the Senate, until it finalizes those consultations. Members of the NDP are strong supporters of extensive consultations with the provinces. The legislation should not go through unless the provinces are fully aware of what the bill will do and its consequences. I anticipate that the consultation process will finish some time this year.

Now the bill is back in the House and looks like it has substantial support. I am not going to say anything further because my voice is about to disappear. I want to again thank all members of the House, both those who are here and those who in the past have supported it. I appreciate that widespread support.

The House proceeded to the consideration of Bill C-290, An Act to amend the Criminal Code (sports betting), as reported (with amendment) from the committee.

Justice and Human Rights

[Dave MacKenzie, Conservative, Oxford, ON]

Mr. Speaker, I have the honour to present, in both official languages, the fourth report of the Standing Committee on Justice and Human Rights in relation to Bill C-290, An Act to amend the Criminal Code (sports betting).

The committee has studied the bill and has decided to report the bill back to the House with an amendment.

Criminal Code

[Brent Rathgeber, Conservative, Edmonton—St. Albert, AB]

Madam Speaker, it is an honour for me to speak in favour of private member's Bill C-290, An Act to amend the Criminal Code (sports betting).

At present, the Criminal Code only authorizes a province or territory to conduct betting on the outcome of multiple sporting events. That form of betting is sometimes called “parlay betting”. By way of contrast, a province or territory may not currently conduct betting on the outcome of a single game.

Private member's Bill C-290, as sponsored by the hon. member for Windsor—Tecumseh, would modernize section 207 of the Criminal Code, which is the “lottery scheme” provision by authorizing a province or a territory to conduct, within its jurisdiction, betting on a single sporting event, such as a single hockey game.

Bill C-290 would leave it to each province or territory to decide whether or not to offer single sporting events betting and if so, whether to operate the betting by telephone, Internet and/or in land-based locations. Such provincial-territorial decision-making is precisely what now exists in section 207 of the Criminal Code with respect to provincial and territorial choices for other forms of lottery schemes, such as VLTs, video lottery terminals, and slot machines.

Under the lottery scheme provisions of the Criminal Code, only a provincial or territorial government may conduct a lottery scheme that is operated on or through a computer, slot machine or video device. A province or territory may not license others to do so.

Some provinces currently place video lottery terminals and slot machines in a land-based location, such as a casino or a race track, or in a lounge or pub. Similarly, under Bill C-290, a province or territory could place a single sport event betting operation in a casino, a race track or any other location that it might deem appropriate.

Currently under section 207 of the Criminal Code, a province or territory may also conduct a “lottery scheme” in co-operation with another province. We know that provinces and territories using this authorization have worked together to offer such national ticket lottery schemes, such as Lotto 6/49. Similar inter-jurisdictional co-operation would be possible under the amendments proposed in Bill C-290 for single event sports betting. A province or territory could choose to work co-operatively with any other province or territory.

Similarly, it would be up to the provinces or territories to ensure that they consult with the sport organizations to ensure the integrity of the game on which the single sport event betting is being offered. Similarly, it would be up to the provinces and territories to consult with problem gambling service providers to ensure that single sport event betters gamble responsibly.

I have been talking today about single sport event betting that would be conducted by a province or territory as a lottery scheme under the authority of section 207 of the Criminal Code of Canada. It is worth remembering that section 204 of the Criminal Code already authorizes any bet, so long as it is done between persons who are not in any way engaged in the business of betting. In Canada we are free to spend our money on a bet if we so choose, so long as we are betting with another private individual who is not in any way engaged in the business of betting.

Historically Parliament has not been concerned with betting between private individuals, but rather with illegal bookmakers who entice betters with credit and who charge exorbitant rates of interest on any debt. Parliament should maintain that concern for illegal bookmaking which has links to organized crime, as the member for Windsor—Tecumseh has correctly pointed out.

If a province or territory chooses to operate a lottery scheme under the amendment proposed in Bill C-290, there would be a benefit to betters who wish to bet on a single game, but have difficulty finding another person to take the opposite side of the proposed bet. Also, in provinces and territories that choose to operate single sport event betting, betters who currently bet with illegal bookmakers would have the opportunity to bet with a legal operation conducted by their province or territory. The profits from legal single sport event betting would support provincial programs and services rather than being channeled by illegal bookmakers into organized crime.

Provinces and territories have had many years' experience in conducting a broad range of lottery schemes. It makes sense that the range of lottery schemes that they are authorized to conduct be expanded to include single sport event betting.

Finally, it also makes a lot of sense to keep Canadian gambling dollars within a province or territory rather than sending the money to illegal bookmakers in Canada or elsewhere, or to offshore Internet betting sites that poach Canadian bettors regardless of whether those offshore sites are legal or illegal in the host country. Bill C-290 would be a step in correcting this and a step in the right direction.

For all those reasons, I support Bill C-290 and will be voting in favour of it.

Provinces and territories have the experience to offer this form of betting if that is what their the electorate wants. On the other hand, if a province or territory chooses not to go there, that again is the province's decision to make, and it falls within the province's constitutional jurisdiction.

I support this private member's bill. I see it as responding to a growing demand for the modernization of the Criminal Code “lottery scheme” provision. It reflects our circumstances in the 21st century.

For those reasons, I will be supporting the bill. I congratulate the member for Windsor—Tecumseh for bringing this important matter forward.

[Sean Casey, Liberal, Charlottetown, PE]

Madam Speaker, I would echo the comments of my colleague who just spoke. I congratulate the hon. House Leader of the Official Opposition for his thoughtful consideration of the matter, a matter that is important to Canadians.

We will be voting in support of this bill at second reading in order to send it to a parliamentary committee for further review and examination and to hear from witnesses.

Gambling in Canada is a properly-regulated activity governed by the Criminal Code that sets out the parameters for gaming. As has been previously stated in debate, up until 1985 the federal government was directly involved in running lotteries. It then devolved that through a provincial-federal agreement and the ensuing revenues went to the provinces. As a result, while the Canadian government maintains its legislative responsibility for criminal law, it is the responsibility of the provinces to licence and regulate all legal forms of gaming so long as the activities remain within the scope of the Criminal Code.

Betting on sports currently falls under paragraph 207(4)(b), which is the paragraph that is proposed to be amended by this private member's bill. It defines “lottery schemes” and explicitly prohibits provinces from allowing wagering on “any race or fight, single sports event or athletic contest”.

In reaction to this prohibition, provinces, through their provincial gaming corporations, have long offered parlayed-based wagering on sporting events. This allows for individuals to bet on the outcomes of three or more sporting events. We think of PRO-LINE, which is popular with millions of Canadians and allows them to wager on sports throughout the world, whether it is the National Hockey League, the National Basketball Association or the one that is most popular in my house, the English premier football league.

These types of wagers allow individuals to choose the outcome of three or more sporting events, the odds of which are published in advance by the provincial gaming corporation. In order to win, a person must correctly predict all of the outcomes. For millions of Canadians, this is a fun activity. It allows them to be more involved in the sport they are watching or following.

Regulated gaming provides a legitimate and sanctioned activity free from tampering and has the effect of generating substantial revenues for governments.

Bill C-290 would delete the section from the Criminal Code that currently prohibits betting on a single sport and would allow provinces the ability to create a regulated environment consistent with their current gaming activities. For individuals, the change would allow them to bet on one match as opposed to three or more so long as the odds were predetermined and published.

It has been suggested by my colleague, the House Leader of the Official Opposition, that several provinces have a desire to see this specific change to the Criminal Code. As an example, two of them, Ontario and British Columbia, have taken the additional step of writing the federal justice minister.

Why support this change? There is a lot of illegal gambling in Canada. Some of it relates to betting on single sporting events. Millions of dollars are spent illegally on single sport gambling and much of this activity is conducted by organized crime and bookies. It is underground and it unregulated.

Technology is also playing a role in the new gaming reality. Members will not be surprised to know that the criminal world adapts very quickly to new technology, using the Internet to exploit and make money from illegal gaming. Illegal sports wagering is all too common throughout North America.

The full extent of this illegal gambling is unknown, but some reports suggest it is massive. I will cite a couple of them.

The United States National Gambling Impact Study Commission has stated that estimates of the scope of illegal sports betting in the United States range anywhere from $80 billion to $380 billion annually. We have heard these figures from the member for Windsor—Tecumseh.

In Canada, a review of the annual reports of the Criminal Intelligence Service Canada suggests that “bookmaking exists in every region of Canada”. According to the report, gaming profits revenue to organized crime groups to fund their illegal and legal activities. It says:

While the size of the illegal bookmaking market in Canada is unknown, it is also thought to be significant. If the range of illegal sports betting in the United States is accurate, it would not be unreasonable to assume that the range in Canada is between $10.0 billion and $40.0 billion.

These figures underline the seriousness of this issue and the need for action.

Regulated gaming provides a legitimate way for Canadians to gamble and, to be frank, it is a significant source of revenue for governments. Illegal gambling means lost tax revenue that provinces might use to provide more and better service to their citizens.

One sensible measure to combat illegal gambling is to change the Criminal Code to allow the provinces to regulate betting on single sporting events. It would have the effect of legalizing what is a common practice and deprive organized crime of another revenue stream.

While single-game betting is currently illegal in most jurisdictions, it is a booming business in other parts of the world. Online gaming is regulated and legal in many countries and they are reaping the benefit from increased tax revenues and profits. The largest component of this online betting includes sports and horse racing.

I believe this bill helps get the discussion going by pointing to a significant reality in Canada; that is to say there are legal and illegal forms of gaming and we need to address the latter.

I realize, as well, that some Canadians and perhaps members here as well, have, for various reasons, an issue with gambling under any circumstances. For them, there are some reasonable concerns. Like many activities, there are dangers involved in gambling. We all know, or have heard stories, of people who have an addiction to gambling with consequences that are serious and profound. A gambling addiction can overtake one's life. It can result in job loss, a broken family and financial ruin and we need to be sensitive to those concerns. However, for the vast majority of Canadians gambling is a fun and harmless activity.

In my home province of Prince Edward Island, for example, one of the highlights of the summer is our famous Gold Cup and Saucer. The Gold Cup and Saucer is one of the premier harness-race events in the world and one that has attracted thousands of tourists over the years. It is a great spectator sport, a great tourist attraction and a source of economic activity that is important to the local economy of Charlottetown. Tom Mullally and his team at the Red Shores Racetrack & Casino have done a wonderful job in preserving and enhancing this great island tradition.

I will be supporting this bill at second reading and hope that all members will do the same. It is important that we might have the opportunity to call witnesses at the committee to better understand the issues related to gaming in Canada. We may also have the chance to hear from people who may have concerns about this legislation and it is important that we hear from all sides of this issue before we proceed. I am sure the mover of the bill would agree with this as well.