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.

[Kevin Waugh, Conservative, Saskatoon—Grasswood, SK]

Mr. Masse, the member for Windsor West, I want to first thank you for all the work you did on your bill. You were the champion in 2016 of Bill C-221, and you've been a great ally to me. I drew number seven overall in the private member's bill draw and came to you right away because I did see the need in this country for single-event betting.

As you well know, the provinces, other than New Brunswick, have spent 30 years regulating lotteries and gaming. They have all the expertise. You're exactly right on that. As I said, I think Quebec and maybe B.C. might get the jump a month in if this bill passes, but there are others that may not bring this bill out for a year. They'll have those discussions.

I can look at the Western Canada Lottery Corporation. The head office is in Leduc, Alberta. They may take a little longer because they're dealing with three provinces and one territory. Will you still go to the corner grocery store to fill out a sheet, or will you go to an app? These are questions that only the provincial authorities are looking at right now. Some are ahead of others, and some may take a little while. We'll see how this goes.

The provinces are ready for this, and I don't have to tell you that this is 10 years in the making. They're still gun-shy on this bill because they have been disappointed in the past, not only with your bill, but with Mr. Comartin's bill and then Bill C-627. However, they are ready, and we'll see where that goes.

Safe and Regulated Sports Betting Act

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Madam Speaker, it is a real pleasure to join the debate today on Bill C-218. To start, I would like to congratulate the member for Saskatoon—Grasswood for bringing forward for the House's consideration this bill and its important amendment to the criminal code.

I was a member of the 42nd Parliament, and during my time then I served as our party's justice critic in 2017. As part of my role, I became quite familiar with the Criminal Code and how out of date so many of its sections are and how important it is that the Criminal Code, as a very important federal statute with huge impacts on the lives of so many people, has regular reviews and revisions. To its credit, the Liberal government in the previous Parliament did try to revise many out-of-date sections, but because of the impact it has on institutions and so many individuals, it is important that we regularly review it.

That brings me to Bill C-218, because it would make a very minor, but I think important, amendment to the Criminal Code. It would amend paragraph 207(4)(b), which defines what lottery schemes are and explicitly prohibits provinces from allowing wagering on any “race or fight, or on a single sport event or athletic contest”.

Criminal law is an area of shared jurisdiction. The federal Parliament has exclusive jurisdiction in amending the Criminal Code, and of course the administration of justice is conducted by the provinces. This goes to show members that the actions of the federal Parliament can sometimes have wide-ranging consequences for provincial jurisdiction. I know in my own home province and in provinces right across the country the regulation of casinos and the different lottery corporations is very much under provincial control. Therefore, this is an area where we as a federal Parliament can have a positive impact by allowing provinces to have a bit more control over this very significant sector, one that currently, under its regulated form, employs a lot of people and provides a lot of benefits to many Canadians and communities across the country.

In recognition of what the member has done with this bill, I would be remiss if I did not also recognize my friend and colleague, the member for Windsor West, who in the previous Parliament brought forward a bill that was exactly the same as this one. That was Bill C-221. I was there on September 21, 2016, when that bill, unfortunately, was defeated in a vote of 156 to 33. It was defeated at the time because most Liberal members of Parliament voted against the bill. Here we are in the year 2021 and this is an ongoing issue. We could have resolved this back in 2016. It is a real shame that we have had to wait so many years before we are finally coming to a stage where it seems like we might have enough support to get this over the line.

I know that the member for Windsor West and his former colleague, Joe Comartin, who used to be the MP for Windsor—Tecumseh and another great New Democrat who first brought this issue to our attention back in 2010, had a lot of help in their respective ridings and from across the country. I know that the member for Windsor West is very appreciative of people like Dave Cassidy, the current president of Unifor Local 444, and the past president Ken Lewenza. Those two individuals and many others have really helped make the case for this bill, and as is often the case, it is our privilege as members of Parliament to take that strong collective community action and put it into a piece of legislation for our Parliament to consider.

I mentioned how most Liberal MPs contributed to the defeat of the previous bill back in 2016. I need to highlight that fact because we are now in a situation where we are debating this current private member's bill, but we also have a parallel bill that was introduced by the very same Liberal government in the form of Bill C-13. It was introduced on November 26 last year, but it is still stuck at first reading.

This gives rise to questions as to whether the Liberals are actually serious about this. When we come to a vote on this particular bill are they going to throw their support behind it? Are they going to slow play Bill C-13? I have heard some supportive speeches by current Liberal MPs, but we do not know where the vast majority of that caucus lies. It would be great to have some clarification on which way the Liberals are going to go this time.

With a closer examination of what Bill C-218 does, it is essentially amending the Criminal Code to give provinces the ability to allow wagers on single-event sports betting. I am certainly not an expert on this, but I think it is important to recognize that it is not only helping to modernize the Criminal Code in giving that jurisdictional responsibility to provinces, but is also a real recognition that this is a sector in the legal gaming sector that already employs so many Canadians. This sector contributes billions of dollars in tax revenues to governments of every stripe. It is one that employs thousands of Canadians.

I do not have any casinos in my own riding of Cowichan—Malahat—Langford, but in the neighbouring riding of Esquimalt—Saanich—Sooke. In the town of View Royal, there is a casino there. It is having tough times right now because of COVID-19. If we were to make this important amendment to the Criminal Code, it would help that casino and its patrons, allowing them to reap the economic benefits when we get to the recovery phase.

It is important to talk about why allowing it is so important. We know that single-event sports betting exists in both Canada and the United States. The main difference is that in Canada it is illegal by virtue of this existing part of the Criminal Code. We are in a situation where speakers on this current bill and its previous iterations, including in 2016, acknowledge that single-event sports betting exists. If it is going on illegally, that means it is the black market that is taking all of the benefits.

When we are dealing with the Criminal Code and looking at how various sections of it are acting, we have to make a very thorough analysis of whether keeping an existing section of the law is even worth it if so many people are in fact breaking the law and if most of the benefits from that activity are going to black markets.

If the revenues from single-event sports betting are funding illegal activity, such as the purchase of guns, and are contributing to the local drug trade, that is a bad thing and we need to find ways to properly regulate it under provincial authorities. I do not want to go into too much detail on this, but I think that in itself is an excellent reason for us to consider amending this section of the Criminal Code to bring it under provincial regulations. There are strong steps being taken to strengthen regulations in gaming as well.

In my own province of British Columbia, we have certainly seen some major inquiries into money laundering in casinos. I am not saying that casinos have not had their problems, but because of the actions of the people laundering money through casinos, the Province of B.C. has now stepped with tighter regulations. If we, as the federal Parliament, were to make this important amendment to the Criminal Code, provinces like B.C. and others, would bring in the necessary strong regulations.

If we look at the United States, Americans spent about $150 billion on sports betting in 2016. Here in Canada, it is estimated that Canadians illegally wager between $14 billion and $15 billion annually on single-event sports. That is not a small sum of money, and it is something we have take great account of.

I will end by noting that there is a list of great supporters of this, including the national Unifor union, the City of Windsor, the Canadian Gaming Association and, closer to home for me, the attorney general of British Columbia. We would do well as a federal Parliament to listen to those voices, from the private sector, labour and provincial governments, to make sure that we pass this bill.

I will indicate my strong support for Bill C-218 and hope to see us get it to committee where it can have that important analysis.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Madam Speaker, I thank the Bloc Québécois for giving me the opportunity to speak on this issue, which is all the more important now that ads for sports betting are becoming increasingly common during broadcasts of Canadian sports events on channels like TVA Sports. These ads are not just regulated by Loto-Québec, and we are seeing other initiatives. It is therefore all the more urgent to better regulate them.

Before I get into the meat of the issue, I want to say that my thoughts are with the front-line workers supporting people who are suffering. Their job has gotten even harder because of COVID-19 and all the emotional distress it is causing. I want to thank them for encouraging those people and express my sincere appreciation under the circumstances. The support they provide is also related to the subject we are talking about this afternoon.

To come back to Bill C-218, I want to thank my colleague from Saskatoon—Grasswood, and I also want to recognize my colleague from Windsor West, who began this process a few years ago. In my opinion, the changes that would be brought about by Bill C-218 would improve transparency, better regulate sports betting and give the government additional resources to take care of vulnerable people struggling with addiction. I think that kind of support is key, regardless of the matter of revenue.

I therefore address the House today to express my support for Bill C-218, which seeks to amend the provisions of the Criminal Code on sports betting and sporting events to make it lawful to bet on a single sports event, rather than having to bet on a minimum of two events or more at a time. Single-event betting is already legal in many U.S. states.

This change would enable the provinces to regulate sports betting practices and give them the legal tools they need to keep bettors safe while limiting abuse. Provincial governments and communities will also benefit from economic spinoffs.

We in the Bloc Québécois believe that transparency is the best way to fight the scourges caused by organized crime. This easing of the legislative measures will allow Loto-Québec, a public corporation, to collect revenues associated with this type of transaction. The Canadian Gaming Association estimates that $27 billion could be recovered from the black market every year.

The most important aspect of this is that, through the work of a public corporation, Loto-Québec, the Quebec government is in a better position to prevent pathological gambling problems than organized crime. Our public corporation has taken it upon itself to raise awareness and help people who have an addiction. Thanks to initiatives such as the Fondation Mise sur toi, the Quebec government is aware that it is best positioned to set up support mechanisms.

Our public corporation's approach gets us out of the infernal spiral of debt, organized crime and the suffering of illegal gamblers. When gambling happens on the black market, the identity of those with problems remains unknown and it is impossible to step in to help those who gamble excessively.

Bill C-218 would limit competition in the sports betting world, which is currently preventing Loto-Québec from competing with U.S. casinos. Even the Casino de Montréal is now advertising to attract players.

Our physical proximity to the United States makes it easy for people to place bets outside our borders. The member for Windsor West really helped us understand that, because his riding is close to Detroit and he has observed the phenomenon himself.

Bill C-218 will give Quebec and the other provinces the tools to better regulate sports betting, which will be impossible if it remains in the hands of offshore websites and underground casinos. Especially now in the Internet age, Bill C-218 will help our own Crown corporation, Loto-Québec, adapt to meet the needs of its clientele while also limiting the flow of capital abroad. I think online poker sites are among the biggest culprits.

Bill C-218 will enhance reciprocity between Canada's sports betting market and the United States'. Without that, it does not work. Specifically, Bill C-218 also protects casinos in Quebec and Canada. The casino in Plattsburgh, New York, competes with the Casino de Montréal in Quebec, just as casinos around Detroit, Michigan, compete with the one in Windsor, Ontario. We are talking significant revenue that our governments are missing out on, revenue that could support health care, for example.

Part of the money taken from sports betting transactions outside our borders would be used to structure our own support mechanisms or at least contribute to the well-being of our constituents.

Bill C-218 also helps weaken the funding of organized crime. It is a way to undercut them by taking away another source of income. It is also a way to prevent misfortunes like the one a young man in Quebec went through. I will read his story as reported in La Presse:

The young man went to an online site. At the homepage, the user has to enter a name and a password to access the site and then he can bet on the outcome of several professional sports games and even on the outcome of the U.S. presidential election. According to our research, the name of the site is registered to a corporation in Panama. The site has been hosted on a server in Costa Rica since March 2015, but did not become active until a year later. The corporation that owns the server hosts roughly 75 other online betting sites. We were told that the Montreal mafia's sports betting operation is run by a manager who has an assistant below him, and then some bookies.

It is sort of like a pyramid scheme. The La Presse article continues:

The bookies are responsible for the players they recruit. The interest charged on a debt can increase from 3% to 5% a week, and when a player has a large debt, an individual with ties to organized crime can purchase it and then collect the debt and interest from the player. “The player's family may end up having to take on the player's debt,” a source explained. “Some people have lost their homes because of online sports betting.”

It is obvious that the situation is more than tragic.

Bill C-218 builds on a long line of failures. Ten years ago, in 2011, a bill similar in every respect to Bill C-218 was introduced, and the Liberals were the only ones who voted against it.

Ten years later, it is rather odd to see the Liberals introducing Bill C-213 to amend the Criminal Code provisions on single-event sports betting.

Then, a new version of the bill was adopted in the House of Commons but ultimately died in the Senate, which was also rather surprising.

In September 2016, the Bloc Québécois voted in favour of Bill C-221, introduced by none other than the member for Windsor West. Oddly enough, however, a majority of Liberal MPs opposed the bill once again.

I have no doubt that my New Democrat colleague from Windsor West will vote in favour of Bill C-218, introduced by our colleague from Saskatoon—Grasswood. He has already spoken to this bill and, I should note, I also had the opportunity to speak then.

In conclusion, the Bloc Québécois supports Bill C-218, since it will provide a new revenue stream for Loto-Québec and will impede unfair competition from American casinos. It will allow Quebec and the other provinces to better regulate sports betting, which is currently left to foreign websites and illegal casinos.

The Crown corporation is in the best position to prevent issues with compulsive gambling and organized crime, and to provide meaningful support to those who have fallen victim to the slippery slope of compulsive gambling. This issue causes psychological distress. We need to take meaningful action, and the framework proposed in the bill introduced by the member for Saskatoon—Grasswood is the least we can do.

[Tony Baldinelli, Conservative, Niagara Falls, ON]

Madam Speaker, it is an honour for me to speak in support of my colleague's private member's bill, Bill C-218, an act to amend the Criminal Code to legalize single-game sports betting in Canada.

I want to thank my Conservative colleague, the member for Saskatoon—Grasswood, for bringing this important piece of legislation forward. I also want to thank my NDP colleague, the member for Windsor West, for being one of Parliament's most vocal supporters for legalizing single-game sports betting.

I am proud to add my voice to this effort through second reading debate today, and I sincerely hope that all parties in the House will provide their support for this important piece of legislation, which is long overdue. In addition to legalizing single-game sports betting, Bill C-218 would help stimulate the creation of much-needed new jobs across Canada, generate millions in annual new revenues, spur tourism recovery and, more importantly, undermine the efforts of organized crime.

I will discuss these benefits in more detail, but first I want to recognize the 40,000 hard-working tourism employees in my community of Niagara, including those in our two casinos.

Before the pandemic, Fallsview Casino and Casino Niagara employed approximately 4,000 workers. Due to COVID-19, these casinos have been closed since last March. It is my sincerest hope that we can soon reach a state in Ontario whereby our tourism recovers and our two casinos can return to a sense of normalcy and responsibly reopen so that workers can begin returning to the jobs that they so dearly miss.

Bill C-218 may be a small bill, but if it is passed by Parliament, it could and would make a big difference. Over the past 10 years, there have been several opportunities for Parliament to address and remedy the situation. Each time, however, this opportunity has been lost. The most recent example, Bill C-221, was introduced in the first session of the 42nd Parliament by my colleague for Windsor West. Despite his valiant efforts, the bill was defeated at second reading by the majority Liberal government of the day. Hopefully, this time will be different.

I am encouraged by the kind words of several Liberal members who have been supportive of this initiative. Some even campaigned on it in the last general election. With cross-party support, it is my hope that we can come together as a Parliament and pass this legislation.

There have been some significant changes to the gaming industry landscape across North America since Bill C-221 was defeated. In a 2018 ruling, the United States Supreme Court legalized single-game sports betting. In response to this ruling, many states rushed to implement this newly legal and hugely popular activity. As of December 2019, 13 U.S. states had already legalized single-game sports betting, including cross-border states like New York, Michigan and Montana. These states are Canada's direct international competitors, and compete against border communities in Canada for tourism visitation, jobs, business and revenue generation.

Another development in the aftermath of this ruling was a shift among major professional sports leagues, which have become far more favourable in their support of single-game sports betting. For example, on June 15, 2018, the NHL released a statement. It read: “The National Hockey League has long opposed legalized sports betting; however, in light of the U.S. Supreme Court's recent ruling, the practical reality is that the landscape for sports betting in North America has changed dramatically. The National Hockey League is no longer opposed to Canadian federal legislation that may be contemplated to eliminate the provisions in Canada's Criminal Code that prohibit provincial governments from offering bets on single sporting events.”

Other major professional sports leagues in Canada that endorse single-game sport betting after this ruling include, but are not limited to, the Canadian Football League, the National Basketball Association, Major League Soccer and Major League Baseball. I cannot overstate the significance of these changes and what it means to have the support of these leagues behind this legislation.

According to a 2017 national economic benefits report published by the Canadian gaming industry, $17.1 billion was generated by this industry, including $16.1 billion in direct gaming activity and $1 billion in non-gaming revenue, which includes items such as food and beverages, entertainment, accommodations, retail and so on. Before the COVID-19 pandemic, gaming in Canada directly supported 182,500 full-time jobs and generated $9.2 billion annually to fund government and community programs and services. Of significance, the Canadian gaming industry has also invested $120 million annually on problem gaming treatment and initiatives to promote research, awareness and prevention as well as responsible gaming programs. It is incredible to think that these were the contributions of the gaming industry to our economy as of 2017. One can only imagine the growth that is ahead when our Canadian Parliament finally agrees to legalize this activity.

A final benefit I would like to discuss is the impact legalization would have on the illegal gaming market that currently exists. In January 2020, the Canadian Gaming Association noted that Canadians are estimated to be spending $10 billion annually through illegal sports betting operations controlled by, or orchestrated by, organized crime.

In December 2019, the Ontario Provincial Police put an end to a sophisticated illegal gaming operation through an investigation called Project Hobart. The police operation led to the arrest of 28 individuals who are now facing a combined 228 charges. From January 1, 2019, to July 2019, a period of just seven months, their illegal gaming websites are alleged to have brought in approximately $13 million in illicit funds. Over the period of five years, the police believe they grossed more than $131 million in illegal revenues. These revenues are a strong source of funding for organized crime.

OPP Commissioner Thomas Carrique said the illegal gaming network placed individuals, society and the economy at risk. It is for these reasons and more that it is time we legalize single-game sports betting in Canada. If the economic arguments are not convincing enough for some of my esteemed colleagues, perhaps this public safety argument is.

The truth is that Canada is very far behind on this matter. We need to catch up to our international competitors, and do so quickly. We were behind even before the pandemic struck, then Parliament was prorogued and here we are today: even further behind. Every day that goes by is an additional day lost to our international competition. These delays cause Canadians to miss opportunities that they should be afforded.

From a tourism recovery perspective as we seek to navigate a path forward from COVID-19, Bill C-218 would deliver exactly what this industry needs as we prepare and plan for our recovery. As member of Parliament for Niagara Falls, I am proud to support Bill C-218 to legalize single-game sports betting, and I encourage my parliamentary colleagues of all party stripes to do the same.

[Rhéal Fortin, Bloc, Rivière-du-Nord, QC]

Madam Speaker, I look forward to the return of the Nordiques, especially since, in my opinion, Alain Côté's goal was legal.

Having said that, such short, clear and succinct bills rarely generate that much interest and debate. Bill C-218 consists of three clauses. The first tells us its title, the safe and regulated sports betting act. The third and final clause states that this act comes into force on a date to be fixed by order of the Governor in Council. All the substance of the bill is found in the second clause, which states that paragraph 207(4)(b) of the Criminal Code is to be repealed. It is pretty straightforward. It is simple, but Bill C-218 is like a ghost haunting the halls of Parliament.

It started in 2011. At the time, so during the 40th Parliament, we had Bill C-627. The bill that had been introduced had the same objectives, but it was never debated.

There was a second attempt during the 41st Parliament, in 2013. That was Bill C-290, but it died in the Senate in October 2014.

During the 42nd Parliament, in other words, the last session of Parliament, there was Bill C-221, but it did not pass second reading on September 21, 2016.

Today, under the 43rd Parliament, we are back with Bill C-218. Hopefully, we can finally make an informed and effective decision on this bill.

Unsurprisingly, the Bloc Québécois will vote in favour of the bill. It will do so because we have to take reality into account. The bill is in line with the legislative movement in the world. Our American neighbours already have laws allowing sports betting on a single sport. The attempt to end this practice was settled by the U.S. Supreme Court on May 14, 2018, with the Murphy v. NCAA decision. That court ruled that it was unconstitutional for Congress to ban sports betting. Americans can therefore do this.

It is 2020 and people in France and England can place bets online. Earlier, in the lobby, I spoke to someone who made bets on a site based in Gibraltar, so we no longer need to meet someone in our city to bet. Now, it can be done everywhere in the world, and it is even easier in the United States.

Our neighbours to the south are competing unfairly Quebec and Canada in the gaming industry. Quebec has always been somewhat concerned about the pathological aspect of gambling and the use of that money. My Conservative colleague spoke about $14 billion. In Quebec, we are talking about $27 million a year, which is no small amount. What is more, we have always felt that this money should not go into the pockets of organized crime but should instead be replenishing the government coffers.

Quebec therefore set up an institution called Loto-Québec, which manages gaming in Quebec. However, the gaming industry in New York state and the entire online gaming industry are currently competing unfairly with Loto-Québec. It is time for that to stop.

Bill C-218 seeks to regulate gaming and make it safer for the people who engage in it. My intention is not to say that betting is a virtue, but it does exist. It always has and it always will. Our job as legislators is to regulate it as best we can.

I will now go back to what I was saying at the beginning of my speech. The title of Bill C-218 is as follows: safe and regulated sports betting act. In my opinion, we must ensure that this industry is regulated so we can better protect the players. It is a major industry around the world.

We want to avoid unfair competition, regulate gaming more effectively and be part of the global movement.

There was a situation in Quebec less than a year ago, in December 2019, involving an 18-year old man from Laval who racked up an online gambling debt of $80,000. When online gambling debts are controlled by the mob, the interest rate ranges from 3% to 5% a week and the debt increases exponentially. That is a scourge that we need to tackle.

This young many obviously did not have the means to pay that kind of money and ended up committing suicide in his home. He ended his life because he was unable to manage his gambling debt and he feared the worst for the safety of his family and the people around him. The website in question was tied to the Montreal Mafia.

We do not want that. Our responsibility as legislators is to prevent situations like that from happening again. The National Assembly of Quebec decided to tackle this problem as best it could. In 2016, it passed Bill 74 to regulate gambling in Quebec. However, the Superior Court of Quebec deemed the bill to be illegal because it did not fall within Quebec's jurisdiction. According the court, Quebec did not have the authority to prohibit gambling.

Quebec's hands are therefore tied. There is a pathological addiction to gambling among people who play. We want to control this problem, and we have some expertise through casinos and commercial lotteries. However, we need the additional tool of Bill C-218 to prevent situations as sad as the one of this 18-year-old young man.

In Quebec, we are talking about $27 million, but my colleague was talking about $14 billion. No matter how many millions or billions of dollars we leave to organized crime, I think it is a disgrace and that we owe it to ourselves to take back this jurisdiction and ensure that people play safely within a well-regulated framework.

Some parliamentarians opposed to the bill have concerns about cheating. I would just like to point out that section 209 of the Criminal Code already prohibits cheating at play. This risk already exists, and will always exist, even after Bill C-218 is passed, and so I do not think this is a problem that should concern us.

We must instead ensure that people who gamble do so within a safe and regulated framework and that the profits from gambling do not end up in organized crime, but remain in government coffers to benefit the citizens of Quebec and Canada.

[The Speaker, Liberal, Geoff Regan]

Pursuant to order made on Friday, June 17, 2016, the House will now proceed to the taking of the deferred recorded division on the motion at second reading stage of Bill C-221, under private members' business.

The question is on the motion.

The House resumed from June 16 consideration of the motion that Bill C-221, An Act to amend the Criminal Code (sports betting), be read the second time and referred to a committee.

Food and Drugs Act

[Brian Masse, NDP, Windsor West, ON]

Madam Speaker, I would like to congratulate the member for Brampton East for a very good intervention, which also touched on several complicated issues related to this agreement.

I was also pleased to hear the discussion around CBSA. What I have raised on Bill C-13 is the question of organized crime, and particularly the goods that get into our country. The ports only check 4% of goods that come into our country, and they will be mixed, including now, with new types of materials and other things that are going to other countries.

Organized crime is one of the things that I have been pushing against with a number of different things, including my bill that will be voted on this Wednesday, Bill C-221. The bill would help eliminate $10 billion in organized crime from single-event sports wagering. We have British Columbia, Ontario, and other provinces onside to diminish organized crime in this country.

I ask the member if, in his opinion, CBSA would get enough resources to tackle the potential of organized crime, basically using Trojan horse trade coming in to allow other goods and services of contraband, which should not be coming into Canada, to go to other countries.

[Chris Bittle, Liberal, St. Catharines, ON]

Madam Speaker, I will be splitting my time with the hon. member for Thunder Bay—Rainy River.

I would like to thank my hon. friend from Windsor for all his work on Bill C-221. It is an excellent proposal and I look forward to voting on it on Wednesday.

Today, I am pleased to have the opportunity to talk about the organization that made the agreement on trade facilitation, known as the TFA, happen: the World Trade Organization.

The TFA is the first multilateral agreement concluded since the creation of the WTO over 20 years ago and is a notable success for both the organization and the multilateral trading system.

As an export-driven economy, one in five Canadian jobs depends upon exports and over 40,000 Canadians companies abroad. The WTO has played an important role in helping to liberalize trade, and trade liberalization remains vital to Canada's future.

For these reasons, Canada has been a key player in the development of robust international trade rules since the 1947 beginnings of the General Agreement on Tariffs and Trade, which later became the WTO.

The WTO remains a cornerstone of Canada's trade and investment policy and serves as a backstop against protectionism. The continued enhancement of global trade rules benefits Canada and the international community as a whole.

The WTO provides an important and effective forum for settling trade disputes, which has dealt with 500 cases in just over 20 years.

Today, 98% of global trade takes place under the WTO rule book, and the WTO's 164 members actively monitor each other's trade measures against those rules in order to improve transparency and avoid protectionism.

It is a system that continues to deliver results, as evidenced by decisions in Canada's challenge of the U.S. COOL rules; that is, country of original labelling.

The WTO delivers results in other areas too, such as the Nairobi package announced at the 10th WTO ministerial meeting in Nairobi, Kenya, late last year, which included discussions on issues important to developing and least-developed countries, including the elimination of trade-distorting export subsidies and conclusion on the expanded Information Technology Agreement, the ITA.

Once implemented, the ITA will eliminate tariffs on certain information technology products that represent around 10% of global trade, which is about $1.3 trillion annually.

The Minister of International Trade participated in the 2015 ministerial conference, where she talked about the importance of inclusive growth and shared prosperity for both developed and developing countries. We want trade and opening up of markets to help raise standards of living, empower women, and protect the environment.

The WTO better helps to integrate developing countries into a global trading system and ensures that they derive real, tangible benefits from it. The WTO also provides the technical assistance required to help improve their trading capacities.

The TFA, a multilateral undertaking, was successful in large part due to the flexibility it allows in the way new commitments are taken on, which has proven to be a crucial ingredient for the WTO's recent successes. It allows developing WTO members to implement commitments in ways commensurate with their capacity.

Under the TFA, developing members are able to divide commitments into those they can implement immediately, those for which they will require extra time, and those requiring both additional time and technical assistance. Developed economies are to facilitate the provisions of technical assistance.

Canada is well positioned to assist developing WTO members in implementing the TFA's provisions and has been refocusing development programming to promote trade facilitation reforms.

Key examples of our efforts include contributions to the World Bank's trade facilitation support program and the new Global Alliance for Trade Facilitation.

The World Bank's trade facilitation support program is a multi-donor program that helps developing countries implement trade facilitation reforms in a manner consistent with the World Trade Organization's TFA. Canada donated $2 million to this worthwhile initiative.

The Global Alliance for Trade Facilitation, launched in December 2015, is an innovative public-private platform to ensure effective trade facilitation reforms in developing countries measured by real-world business metrics.

The key innovation of the alliance is to leverage private expertise to identify, validate, and support practical reforms that simplify customs procedures, reduce border wait times, and reduce trade costs—to which Canada contributed $10 million, as a founding donor.

The TFA has attracted widespread support from Canadian and international stakeholders, including the Canadian Council of Chief Executives, the Canadian Chamber of Commerce, Canadian Manufacturers & Exporters, and a large number of agriculture and agri-food business associations.

The TFA will only enter into force once two-thirds of WTO members have ratified the agreement. Some 92 members have already ratified the TFA. This includes our major trading partners—the United States, the European Union, China, and Japan—and Canada is expected to follow suit expeditiously. An additional 18 ratifications are required for the TFA to enter into force.

The statutory amendments contained in Bill C-13 are required to allow Canada to ratify this agreement. These amendments are designed to protect the health and safety of Canadian consumers and workers, as well as the environment, in the event that goods in transit are diverted into the Canadian market, and to clarify practices related to the treatment of rejected goods.

Canada is committed to making the world more prosperous and helping the poorest and most vulnerable reap the poverty-reduction benefits of economic growth. Canada can do its part by ratifying the TFA as quickly as possible.

I urge all hon. members to support the legislative amendments contained in Bill C-13 that will enable Canada to do our part to bring this agreement into force.

[Brian Masse, NDP, Windsor West, ON]

Madam Speaker, I actually did not raise the TPP during my speech, but I would be happy to answer.

The concerns the NDP members have raised, and they are concerns brought to us by many stakeholders, not just here in Canada but at the beginning of the discussions on the TPP, were that they were done in private and created an agreement that, basically, we cannot amend right now.

Let us imagine that someone went to buy an automobile—my personal preference, in terms of my riding, would be a Pacifica—and in trying to negotiate the sale was given a contract, with the only option being to sign that contract.

Later on, when there were discussions and hearings, as we are having, we heard concerns that people were not consulted during the creation and have no avenue to deal with the issue.

I would continue to at least look at some of the benefits and some of the challenges we have. On Bill C-13, I have talked a lot about organized crime and the exposure of our ports, with goods and services coming into Canada, which would expand, as would the problems we have with organized crime.

Interestingly, we are going to have a chance in this chamber very soon to deal with a bill on organized crime. It is my private member's bill, Bill C-221, which is up for a vote on Wednesday. That bill alone will end a $10-billion annual benefit, in cash, for organized crime in Canada alone, and $4 billion in Canadian money that goes offshore.

We can affect things right here, right now. This bill, C-13, will have further challenges if we want to tackle organized crime.

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.

[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.

[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.

The House resumed from April 19 consideration of the motion that Bill C-221, an act to amend the Criminal Code (sports betting), be read the second time and referred to a committee.

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, later today my Bill C-221 will be debated in the House of Commons for the second time before going to a vote. I would like to thank the member for Skeena—Bulkley Valley for his support for this bill.

This bill would allow single-event sports betting, which is critical for the Canadian economy. Most important, it would take away $14 billion of money to organized crime and unregulated offshore betting taking place right now in a market that induces our youth. The money it supplies to organized crime can be rerouted to public infrastructure, health care, education, gaming addiction, and a number of different priorities that Canadians want.

Sports analysts across the world are coming to the conclusion that regulation is necessary for this activity. This bill, to be clear, would allow the provinces to do this if they so choose. It would not make them do anything. Why would Liberals be opposed to the province of Ontario? Are they listening anymore?