Bill C-221 (Historical)

Safe and Regulated Sports Betting Act

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.

Safe and Regulated Sports Betting Act

[Bill Blair, Liberal, Parliamentary Secretary to the Minister of Justice and Attorney General of Canada]

Madam Speaker, I rise today to speak to private member's bill, Bill C-221. After carefully considering the bill and reviewing the earlier debate on the subject, I want to advise the House that I cannot and will not be supporting it. The bill would amend the Criminal Code to authorize a province or territory to conduct betting on a single sporting event, which is sometimes called “head-to-head betting”. Bill C-221 would essentially replicate former Bill C-290 of the previous Parliament.

The bill would delete paragraph 207(4)(b) of the Criminal Code, meaning that the current prohibition on provinces and territories against conducting single-event sports betting would be removed. Currently, section 207 of the Criminal Code authorizes provinces and territories to conduct betting on multiple sporting events, which is normally called “parlay betting”. The current gambling provisions in the Criminal Code criminalize all other forms of gambling, except those that are specifically authorized by the Criminal Code.

I understand that the provinces and territories would stand to gain a substantial increase in gambling revenues if Bill C-221 were to pass. For casinos that have proximity to a city in the United States that has no legal, single-event sports betting, there could be a strong market advantage. Canadian border cities with casinos might see some additional economic development benefits.

While I appreciate the economic advantages that the proposed reform could bring about, the big concern I have to share is the impact that this proposed change could have on individuals and families, the social costs of gaming.

I would like, now, to turn to the very important issue of gambling addiction.

The dangers involved with gambling addictions are serious and profound. Problem gambling is associated with mental health issues, such as depression, anxiety, and suicide. It can also affect family and marital relationships, work and academic performance, loss of material possessions, and it can lead to bankruptcy and, certainly, crime.

Provinces and territories spend millions of dollars toward the prevention and treatment of problem gambling. They offer a variety of services and treatments that have been derived from many different methods of counselling and therapy to assist those who have a compulsive gambling problem, as well as family members of those who suffer from this problem.

Youth are particularly vulnerable to the problems arising from gambling. A 2014 study by the Centre for Addiction and Mental Health, CAMH, in Toronto, found that 35% of students in grades 7 to 12 gambled at least once in the past year. Another study found that a quarter of Ontario students with gambling problems reported a suicide attempt in the past year, roughly 18 times higher than in the general population.

I believe that if Bill C-221 were to pass, the costs to the provinces and territories would inevitably increase. More important, the cost to individuals, families, and society would increase.

We must also consider the issue of illegal bookmaking. Illegal bookmakers enjoy a monopoly on single-event sports betting. Police report that bookmakers are connected to organized crime.

We know that numerous Canadians illegally bet on single-event games. In my view, even if Bill C-221 were to pass, the vast majority of those who bet with illegal bookmakers would continue to do so. This is because bookmakers extend their credit directly to the bettor, unlike the provinces and territories. Illegal bookmakers also have lower overhead costs and can offer more favourable betting odds. Bill C-221 would do nothing to change the attractions offered by illegal bookmakers.

Sports leagues are rightly concerned to ensure that there is no match fixing. Professional sports leagues previously have strongly opposed similar bills. They have argued that allowing single-game betting would open a Pandora's box of match fixing and social problems associated with gambling. The integrity of sport is critical to maintaining the interest, respect, and loyalty of sports fans.

In my view, while the sponsor's stated objectives are indeed laudable, the proposals would not achieve the desired objectives without doing significant harm to society and increasing the already high social costs of gambling. For that reason, I will not be supporting the bill and do not recommend that it be sent forward to a legislative committee for its consideration.

[Tracey Ramsey, NDP, Essex, ON]

Madam Speaker, I am pleased to have the opportunity to rise today to speak in support of Bill C-221, also called the safe and regulated sports betting act.

I would like to thank my hon. colleague and neighbour, the member for Windsor West, for introducing this bill. It is an important piece of legislation. It seeks to delete paragraph 207(4)(b) from the Criminal Code, which explicitly prohibits wagering on any race, fight, or single sports event or athletic contest.

The bill may sound familiar, and for good reason. It was previously introduced by my friend, Joe Comartin, the now retired member for Windsor—Tecumseh. He did more than just introduce it, though. His bill was debated in this place, passed in a vote at third reading, and sent to the Senate. Unfortunately, it languished in the Senate for years before dying on the Order Paper with the dissolution of the 41st Parliament.

It is shameful that the Senate did not do its job and that it prevented the passage of legislation that was passed by elected MPs in the House. Therefore, I thank the member for Windsor West for choosing to reintroduce his former colleague's bill and for his continued work serving his community in the region of Windsor-Essex.

As I mentioned, Bill C-221 would remove the clause in the Criminal Code that prohibits betting on “on any race or fight, or on a single sport event or athletic contest”. Betting on sporting events is not illegal in Canada. Since 2005, Canadians have spent around $500 million annually betting on sports legally. What this bill would do is make betting on a single event legal.

Right now, individuals are required to bet on at least two events. In Ontario, the minimum is three. This so-called parlay system is under the jurisdiction of the provinces, as is all operating, licensing, and regulating of legal gambling. Bill C-221 would simply allow for single sports betting to come under the purview of the provinces as well.

The safe and regulated sports betting act is very relevant to the people who live in my riding of Essex. A large employer and attraction in our region is the world-class Caesars Windsor casino. People come from all over southwestern Ontario and the American Midwest to visit Caesars, both for its entertainment purposes and to enjoy the many other tourist attractions of the Windsor-Essex region. Local residents know how much Americans love coming over to Caesars. All anyone has to do is look at the border traffic on any weekend in Windsor.

Americans choose to come to Windsor-Essex even though Detroit casinos may be more convenient for them. They like coming to Canada, especially now with the lower dollar. The legislation before us today would give casinos like Caesars a competitive advantage over their competition south of the border. This is good for Canadian jobs, tourism, and economy.

Currently, only Las Vegas, Nevada, offers legal single sports betting in North America. Think about that. If people want to place a legal wager on the Super Bowl, the Grey Cup, or a Stanley Cup finals game, the only place they can do so is Las Vegas. For the Super Bowl weekend alone, there are estimates that nearly $116 million were generated.

There is tremendous economic opportunity here. Gaming is the largest sector of the entertainment industry. It directly supports more than 128,000 full-time jobs and generates $8.7 billion in revenue to governments and first nations groups. A Canadian Gaming Association study estimates that the introduction of single sports betting would generate $70 million in revenues and nearly $31 million in ancillary revenues to the Windsor-Essex region. Other border regions with casinos would similarly benefit.

Many communities stand to gain from this new source of revenue that would be returned, in part, to the community. It has been estimated that allowing single sports betting could create 100 direct jobs at Caesars Windsor. This is huge for my region, which has stubbornly high unemployment rates. Over the past decade alone, it has lost well over 10,000 good manufacturing jobs. The region needs new opportunities. This is why my colleague's bill has widespread support, including from the city of Windsor, the city of Niagara Falls, the Canadian Gaming Association, and the Windsor-Essex Regional Chamber of Commerce.

A delegation came to Ottawa earlier this year to encourage parliamentarians to support this bill. Representatives came from the Canadian Chamber of Commerce, the Canadian Labour Congress, the Canadian Gaming Association, and others. Despite the bill's broad support, the government has said it opposes Bill C-221 because it could potentially have negative impacts on those who struggle with gambling addictions. This is a serious concern and something to which I am very sensitive. Addiction is a serious problem, one that can destroy the lives of people and families in our community. Let us not underplay that.

However, I do not see any evidence put forth by the government to support its claims that Bill C-221 would encourage gambling problems. It is important to note that single sports betting already happens in Canada, but it is illegal and unregulated. In fact, it is estimated that the size of the market is in the $14 billion to $15 billion range. It is operated by illegal offshore gaming companies or organized crime rings. These are unregulated and unsafe venues. Yet, every day, people hand over their credit card information to these offshore websites and incur big amounts of debt. These organizations will not hesitate to prey on the vulnerable and they do not help to provide services that benefit the public.

Simply continuing the prohibition on single sports betting, as the government seems to favour, will do nothing to stop these organizations from profiting off of Canadians. According to reports by the Criminal Intelligence Service Canada, bookmaking exists in all regions of Canada, and gambling, including sports betting, is used as a funding tool for organized crime. A legal and regulated single sports betting industry would undermine the client base of illegal gambling venues. Legalization would not only reduce their profits by providing customers with a legal alternative, but it would also protect law-abiding citizens.

For those who currently participate in single sports betting by dealing with criminal groups, a regulated industry would provide a safe alternative. This safe alternative would be of greatest benefit to those suffering from an addiction to gambling. As I have said, we need to support those who need our help, and continuing this prohibition on single sports betting impairs our ability to do this. Instead of being exposed to the opportunities and services available to them in a safe, legal, and regulated environment, those suffering from gambling addiction are forced to interact with predatory and criminal enterprises. This is dangerous to their personal safety and financial health, and also detrimental to their ability to heal. Do members think organized crime groups are contributing money to anti-addiction efforts, supports, or services? Of course not. The provinces do this.

Measures are in place to support people with gambling addictions. In Ontario, there is a Responsible Gaming Resource Centre operated by the Ontario Lottery and Gaming Corporation. The one in Caesars Windsor is open seven days a week between 10 a.m. and 2 a.m. These centres provide people with information about community services available to help them fight addiction and also help them learn about safe gaming practices. According to the website rgrc.org, over 170,000 people receive services from these centres.

There are other resources available to those who wish to seek help with their addiction. These include Ontario's self-exclusion program, where individuals can request to be denied access to OLG facilities; and also the playsmart.ca website, which is full of excellent resources. It is incredibly important to have a strong network of services to support people with these addictions.

Bill C-221 would not legalize something that does not already happen. Single sports betting happens every day in Canada. What we are talking about here is providing the opportunity for the provinces to be able to regulate and co-ordinate in a safe environment. We know and believe that moderation is the key to responsibly enjoying other forms of gaming. This principle should be applied to single sports betting.

Let us take the money out of the hands of criminal groups and put it to work for our communities. Providing a safe and legal environment for Canadians and providing the vulnerable with better addictions services absolutely deserve all of our support.

I want to encourage my colleagues to give serious consideration to supporting this bill at second reading. I urge all members to vote in support of the safe and regulated sports betting act.

[Kennedy Stewart, NDP, Burnaby South, BC]

Madam Speaker, it is a pleasure to speak to Bill C-221, an act to amend the Criminal Code on sports betting, put forward by my colleague, the MP for Windsor West.

Before I start, I would like to say a few things about the MP for Windsor West.

I cannot think of a better champion for his or her community than that MP, the dean of the NDP caucus. Not only is he a voice of reason in our party and in the House, but he is also a tireless defender of his community. This bill shows he has a deep understanding of how his region works, the needs of his region, and is prepared to put forward positive ideas and proposals to make the local economy better.

This bill, in brief, proposes to modernize the Criminal Code to allow provinces to regulate single-event sports betting. In doing so, the member argues, in putting his bill forward, that it would add economic benefit to not just his community, but many Canadian communities, and reduce the influence of organized crime.

I will speak a bit about those two points. I am supporting the bill for a different reason, which I will share shortly.

Bill C-221 would amend the Criminal Code by deleting a section in it which explicitly prohibits provinces from allowing wagering “...on any race or fight, or on a single sport event or athletic contest”. The bill would allow for wagering on the outcome of a single sporting event, and many Canadians are probably confused that we do not already have this. This is a throwback law that has been in place for a long time, and in a lot of people's views, unnecessarily.

There has been a shift in how betting laws are regulated in Canada. The federal government has decentralized a lot of this control to the provinces over the years. Provinces are currently responsible for operating, licensing, and regulating all legal forms of gambling, including the lottery schemes. This is really because each region, each province, has individual needs and, of course, different cultures for gambling and related events.

Perhaps there are different views among the populations that have to be reflected in provincial laws, which makes sense. It is not as if we do not have unregulated betting at all. It is handled by the provinces.

There was too much regulation at one point, and now we are kind of reaching a point that we have decided that the provinces will take care of all of this. Therefore, each province determines the type, amount, and location of gaming activity that is available in their jurisdiction, which seems right to me.

Since 1985, gaming facilities have been established in most provinces, offering a diverse range of options, including slot and video machines, card games, and games of chance such as Roulette and Craps. In greater Vancouver, we have seen a kind of flourishing of the gaming industry, but a moderate flourishing. When this started, a lot of people thought it would be a very bad and intrusive industry that would change the very nature of our communities. However, it does not seem to have had that impact, although it has had both positive and negative impacts.

The key is that at least it is regulated now. At least the provincial governments get a significant amount of revenue from these industries. Not only provincial governments but municipalities and charities also receive a significant benefit from gambling.

Gaming is one of the oldest activities in the world. It is proper to regulate it, again, much like marijuana. It is something that happens, and government involvement is important. Also, it would lead us to recover some of the revenue so we could help support things like addiction services and counselling when people have trouble with these activities.

Oversight in this industry has been decentralized to the provinces, but the Criminal Code still applies to some aspects of the gaming industry, including single-event sports betting. Therefore, if this proposed law were in place and single-event sports wagering were permitted, each province would determine how and if it would be implemented.

It is not like passing this law would all of a sudden open up single sports betting right across Canada. It would still be up to the provinces to decide if they were going to allow it and what the laws would look like in each province.

The public is not losing control of this industry or oversight of this industry, it is just being decentralized to the provinces, who, I would say, are in better shape to make decisions about those more localized communities.

We heard some arguments today about the economics of this industry. Gaming is an important contributor to the Canadian economy. It is the largest segment of the entertainment industry, and supports more than 128,000 full-time jobs, with another 283,000 indirect jobs. It generates almost $9 billion in revenue for government and community programs. It is nothing to sneeze at, and it is something to take very seriously.

I am glad my colleague from Windsor West has brought the bill forward. It allows us to have these kinds of debates. Again, it puts pressure on the government to consider if, indeed, we are regulating this industry in the correct way.

The reason why single-event sports betting is important is that it would give the Canadian gaming industry an edge over the American gaming industry. In British Columbia, where I am from, although there are local casinos, most people talk about going to Las Vegas. Lots of British Columbians fly to Las Vegas to bet down there. One reason is single-event sports betting, which is allowed in Las Vegas but not in British Columbia.

One could imagine the reverse flow of residents and gamers if this were allowed in British Columbia, starting here with this law and then regulation by the province. It would reverse the flow of that money. That is an important consideration. We all know we are in tough economic times. This would be important.

Now in Vancouver, with a fairly robust economy, maybe this would not make a huge difference, but in some communities along the border, this would make a difference, especially from what I am hearing from my colleagues in Windsor. No other states have legalized single-event gaming operations, so this would give Canadian gamers an edge. My colleagues have said it very well, that this is occurring. These betting activities are occurring, but mainly illegally in Canada. What this allows us to do is capture the revenue that we are losing.

Again, the government has made the same claims about legalizing marijuana, saying that when it is an illegal substance it is only dealt with in an illegal way and all the profits remain in the hands of organized crime. That is why they are arguing they should legalize marijuana. It would allow the government to regulate and capture this revenue. The same case could be made for single-event sports betting.

We have heard opposition from the other side, and we have heard a number of Liberals say that they are not going to support the bill. They have in the past, and I am hoping that they again reflect on what they are denying Canadians by voting against the bill.

In terms of organized crime and the effects of organized crime in this area, illegal sports wagering includes both illegal bookmakers and illegal Internet betting companies operating in North America. It is hard to estimate the size of black markets, but according to the American Gaming Association, Americans spent almost $140 billion on illegal betting last year. In Canada it is harder to get a sense of what illegal gambling brings in, but it is estimated that it is between $14 billion and $15 billion, only on single-event sports betting.

One can imagine the amount, if this entire industry were regulated, in two ways: first, if we were able to capture revenue on the $14 billion to $15 billion, and second, if we were able to attract some of the American betters.

I am not a huge fan of gambling. It may seem strange to say that after this speech but I have talked to my constituents. I opposed a mixed martial arts bill that came from the Senate in the last session. However, I voted for it because my constituency told me loud and clear that this was what they wanted. The same applies to this bill. I have talked to a number of people in my constituency, elected officials and local residents. They have said they want me to support the bill, and that is what I am doing.

I am standing up today to support my colleague from Windsor West and his private member's bill. I hope everyone here in the House will as well.

[Brian Masse, NDP, Windsor West, ON]

Madam Speaker, I thank my colleagues on all sides for taking part in this debate. What takes place next is a simple process. It is about whether this House has the courage to tackle organized crime in the most significant legislation that will be proposed in this House of Commons for this session of Parliament. It is clean and simple. We send this to committee to be studied, examined, and brought back here for a final vote.

Let us look at the facts carefully. The bill was already in previous Parliaments. It went through with Liberal, Conservative, and NDP support. It was stymied in the Senate and had to re-emerge here. With about $10 billion going to organized crime per year, it has cost us over $20 billion. As it has stalled in the Senate for three years, that is $50 billion going to organized crime.

If the bill does not make it this time and we do not get it to committee, it becomes another four years, unless it is introduced by the government, having to eat crow. What do we have in the meantime? We have a $50-billion gift to organized crime. Organized crime will get the biggest single corporate tax cut from the government. They will get the resources.

Sports betting across this globe is a $2-trillion annual business. Canada is a laggard in terms of accountability. Very little of that is recovered by governments. About 80% is going to organized crime.

If we vote for the bill right now, we give it a chance to go to committee. Let us hear from the experts that are for it. Let us hear it from the experts that are against it. Let us hear about one sentence in the Criminal Code that, in my view, would increase accountability, tourism, and jobs and would give us more reason to tackle other organized crimes, because we would unplug them from their single most profitable source of revenue. That would mean new revenue for health care, education, gaming addiction, and other elements.

I am being mocked and heckled by a Conservative over there, but that is okay. They do not take it seriously, but I do, because those revenues are being asked for and supported by the Province of Ontario and by the official opposition in Ontario.

This gives the provinces the opportunity to choose, if they want, to go into this type of possibility. They have the infrastructure, such as the Alcohol and Gaming Commission, which has accountability and the ability to put this out to market if they choose to do it.

For example, if Ontario wants to bet on one event one time, they can do that, monitor it, and provide the accountability and oversight that so many people want.

I can still hear my colleague, and I would ask him to maybe speak to the bill.

[The Assistant Deputy Speaker, NDP, Carol Hughes]

I ask the members to keep their voices down, but I do want to advise the member that there is a private conversation going on here, and it has nothing to do with what the member is saying.

Again, I will ask the members to keep their voices down so you can continue with your speech. You have one minute left.

[Brian Masse, NDP, Windsor West, ON]

Madam Speaker, this is an opportunity we will not have again. We will not have it for this Parliament, unless the Liberals decide to actually introduce it as part of their process.

We have heard testimony on gaming accountability from international and domestic police and others who have testified to the veracity of the exposure we have from unregulated, unaccountable, single sports betting that is taking place in backrooms, bars, basements, and back halls and through organized crime. Sadly enough, with the click of a mouse, it is also being done by our youth.

Let us send this to committee. Let them hear the evidence, and let us move on.

[The Assistant Deputy Speaker, NDP, Carol Hughes]

Is the House ready for the question?

[Some hon. members]

Question.

[The Assistant Deputy Speaker, NDP, Carol Hughes]

The question is on the motion. Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

No.

[The Assistant Deputy Speaker, NDP, Carol Hughes]

All those in favour of the motion will please say yea.

[Some hon. members]

Yea.

[The Assistant Deputy Speaker, NDP, Carol Hughes]

All those opposed will please say nay.

[Some hon. members]

Nay.

[The Assistant Deputy Speaker, NDP, Carol Hughes]

In my opinion the nays have it.

And five or more members having risen:

Pursuant to Standing Order 93, the recorded division stands deferred until Wednesday, June 22, 2016, immediately before the time provided for private members' business.