This bill was last introduced in the 43rd Parliament, 2nd Session, which ended in August 2021.
This bill was previously introduced in the 43rd Parliament, 1st Session.
Kevin Waugh Conservative
Introduced as a private member’s bill.
This bill has received Royal Assent and is now law.
This is from the published bill.
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.
All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.
The House proceeded to the consideration of Bill C-218, An Act to amend the Criminal Code (sports betting), as reported (with amendment) from the committee.
The Speaker Anthony Rota
If a member of a recognized party present in the House wishes to request a recorded division or that the motion be adopted on division, I would invite them to rise and indicate it to the Chair.
The hon. member for Niagara Falls.
Tony Baldinelli Conservative Niagara Falls, ON
Mr. Speaker, I ask that at report stage the bill be passed on division.
(Motion agreed to)
Some hon. members
Agreed.
Kevin Waugh Conservative Saskatoon—Grasswood, SK
moved that the bill be read the third time and passed.
Mr. Speaker, what a day we have today. It is certainly an honour for me to speak to this legislation once again. Now we are in our third reading, after a robust study at the justice committee.
It is worth noting that Bill C-218 returns to us with a slight amendment, supported by all parties, to ensure that proper protections are in place for Canada's proud and long-standing horse-racing industry.
At first reading and second reading, and in committee, I had the opportunity to discuss many of the issues at the heart of single-event sports betting. Even though single-event sports betting is prohibited by the Criminal Code, it is still a $14 billion industry here in Canada. As I have said before in this place, it is all done by unregulated and unsupervised offshore betting sites and black market bookmakers. There are no consumer protections in place. There are no problem-gambling programs offered and no guidelines that bookmakers are required to follow. This also means that the economic benefits are not being felt by Canadians.
I do not want to repeat what I have discussed already through the various stages of this legislative process. However, for the benefit of my colleagues who did not participate in the justice committee study, I want to highlight some of the important points that were raised by witnesses during the justice committee study on Bill C-218.
The first comment is from Shelley White. She is the CEO of the Responsible Gambling Council, which is an independent organization that works to ensure there are adequate gambling safeguards in place to promote the well-being of Canadians and communities. She said:
[I]t is RGC's neutral and independent stance that we recommend Bill C-218 be passed. This is a unique opportunity to bring together stakeholders from health, mental health, education, financial services and the policing sectors with the gambling industry to create a made-in-Canada responsible gambling culture comprised of evidence-informed regulations and leading practices. We have the opportunities to learn from other jurisdictions who've come before us and applied the highest level of safeguards.
This same point was reiterated by Paul Melia, who is the president and CEO of the Canadian Centre for Ethics in Sport. He said:
I think the legislation provides an opportunity to provide greater services and support to those who may become addicted to gambling than the current system, where we have an unregulated market and where it's going on. We're not really aware of how much is going on, who may be addicted and who might be harmed, so I think there's an opportunity to provide the appropriate services.
I put these two comments first because they address the concerns I have heard from many constituents of mine and from Canadians who have written to me from coast to coast.
When we talk about gambling in any form, mental health and addictions are major concerns, and rightfully so. However, the reality is that the current situation is far worse for those who are struggling with addiction and mental illness. By allowing offshore sites and black market bookmakers to monopolize single-event sports betting, we are ensuring that adequate consumer protections and assistance programs are not available to those who desperately need them. As addressed by the Responsible Gambling Council and the Canadian Centre for Ethics in Sport, this bill presents an opportunity for us to rectify that issue once and for all.
The next comment I want to touch on is from Unifor president Jerry Dias. He said:
It goes without saying that revenues generated in illicit, illegal, underground black market gaming operations do nothing to contribute to good jobs for workers in Canada. This money is siphoned off into the pockets of offshore operators and organized crime. On the other hand, by creating a legal and regulated market for single-game sports betting in Canada, we could help protect thousands of good, unionized jobs in gaming locations across the country and potentially create many more.
I have two more comments from the committee on which I want to touch.
The first is from Zane Hansen, the CEO of the Saskatchewan Indian Gaming Authority, which is responsible for managing several casinos in my home province of Saskatchewan. He provided some important context for the gaming industry, given the COVID-19 pandemic. He said:
...having single-event wagering as an approved form of gambling to incorporate into our business model will really assist us in rebuilding and going forward. It's going to be a whole new world getting our customers back into our building and feeling safe and comfortable.
By the way, Zane Hansen provides what I feel is important insight from the industry's perspective because it is also from an indigenous perspective.
Bill C-218 would provide a significant opportunity to help the gaming sector begin the rebuilding process. This applies not only to SIGA or Saskatchewan, but to all establishments and communities across the country.
The final comment I want to touch on is from David Shoemaker, CEO of the Canadian Olympic Committee, as it gives an all-encompassing overview of the legislation. He said:
The timing is right for Canada to expand sports betting. This bill has the potential to unlock new growth opportunities, reduce illegal betting and generate revenues for both the sport industry and governments. Our interests are in ensuring that single sport betting is introduced in a responsible, effective and profitable manner.
I am not sure I need to add anything else to Mr. Shoemaker’s remarks tonight, other than to point out that the support coming from the Canadian Olympic Committee is representative of the fact it is not just professional sport that wants the legislation to pass, but amateur sport as well. Bill C-218 is in the best interests of all athletes.
We know the legislation has support across party lines, throughout industries and from countless stakeholder groups. Let us not delay any further and get Bill C-218 sent to the Senate so it can be considered and hopefully passed there.
Mark Gerretsen Liberal Kingston and the Islands, ON
Madam Speaker, I want to thank the member for bringing this bill forward and for getting it through the various stages. Hopefully, tonight we can see this put to an end and it will make its way over to the Senate.
One of the things I find very attractive about the legislation, which the member brought up in his comments, is that as a lot of this activity is already going on, there is an opportunity for the government to get involved and generate legal revenue from it.
Would the member like to expand a bit on that.
Kevin Waugh Conservative Saskatoon—Grasswood, SK
Madam Speaker, I want to thank the member for Kingston and the Islands for his support on this bill, Bill C-218.
He is absolutely correct. All the federal government has to do is take a single line out of the Criminal Code to give the provinces and territories the much-needed support to move forward with single event sport betting. This is just the first of many processes. If we can get it passed tonight and on to the Senate, where it can look at it and make the necessary adjustments if it wants to, then it will give that power to the provincial governments, through their lotteries, which quite frankly have been dealing with gaming institutions for the past 30-plus years. We are really looking forward to the legislation moving forward.
Kristina Michaud Bloc Avignon—La Mitis—Matane—Matapédia, QC
Madam Speaker, I thank my colleague for introducing his bill. The Bloc Québécois supports the bill, and I would like my colleague to remind us how it can help protect organizations like Loto-Québec from unfair competition from American casinos, for example.
Kevin Waugh Conservative Saskatoon—Grasswood, SK
Madam Speaker, that is happening in the industry now. In 2018, in the United States, New Jersey challenged the bill, because the only place people could access single game betting was in Nevada. New Jersey took it to the Supreme Court and won.
Therefore, what we have right now, two or three years later, are states like Michigan and New York, which are bordering Canada, offering single game betting already. The member is right. The issue is that in Canada, particularly closer to the border, as Quebec and Ontario are, we do not have that luxury today. Obviously, the benefit goes to those casinos that are closer to Canada as they will take a lot of our money away and the prosperity we could enjoy in Canada, in Quebec, Ontario and B.C. in particular.
Brian Masse NDP Windsor West, ON
Madam Speaker, I thank the member for Saskatoon—Grasswood for his work on this. The committee also worked very diligently on a robust study to get it back to the chamber.
I have a quick question, though, regarding the money that will be taken away from organized crime. One thing is clear in reflecting on this, and that is that it will actually also take money away from the organized crime that police spend on because organized crime uses that money for other types of criminal activities. There will be a net benefit for Canadians and policing.
Kevin Waugh Conservative Saskatoon—Grasswood, SK
Madam Speaker, I want to thank the member for Windsor West for all his support going forward with this bill. Unfortunately, his bill in the last Parliament did not pass, so we are here again, trying to push it across the finish line.
The member for Windsor West is correct. We heard in the justice committee testimony that a lot of this money is going to organized crime, fuelling drugs and fuelling guns. We are not going to get it all back. There is $14 billion that we know is bet, illegally, today in Canada.
A lot of this money needs to come back to the provincial coffers. With this bill passing, I think we are going to do very soon.
Mark Gerretsen Liberal Kingston and the Islands, ON
Madam Speaker, it is an honour to rise today to speak to this private member's bill.
I do want to express my support for Bill C-218, the safe and regulated sports betting act that is before us. I also want to take the opportunity to congratulate and thank some other members too, in particular the member for Windsor West, who just asked a question a moment ago. He brought forward a similar bill that did not get to where we think this one will get to after the vote today.
The legislative process is very interesting in the way things can work their way through this House and the way bills can come forward and be lost, but the issue may not be lost and it can keep gaining momentum. Then somebody else will bring it forward, or perhaps a government will bring it forward. Eventually, it will end up getting here. Although the bill from the member for Windsor West did not make it through, it certainly played a role in advancing this issue in this House.
In my own caucus, I think of the member for St. Catharines, who routinely talks about this issue and brings it up, making sure it was at the forefront and people were continually considering it. I had many opportunities over dinner and at various times listening to him talk about this issue.
What we have come to realize is this is a $14-billion industry in Canada. Right now, a lot of that money, the majority of it, is offshore or in crime. We have an opportunity here to recognize the fact that this is already happening, so why not use it as an opportunity to regulate the industry, control it, and get that money out of crime. Getting that money legitimately into our economy will make sure that governments, whether federal, provincial or regional, have the opportunity to benefit from this as well, and that the money is not just in organized crime or hiding behind legitimate ways of doing business.
One other thing I will add is that I genuinely think this will increase the integrity of sports. It will help, in particular, the booking of sports and the police in doing their work to make sure that things are being done legitimately.
There are a number of good arguments for this legislation. There is the angle of tourism, as it relates to sports betting and what it means to certain tourism industries in certain parts of country. I think of Niagara and Windsor off the top of my head. As I am from Ontario, those are the two that come to mind first.
The government plans to support this piece of legislation. It is long overdue, and I am happy to lend my voice to that support and vote in favour of this when we get to that moment shortly.
The Assistant Deputy Speaker Carol Hughes
I can confirm that your camera is off. We will move to the next speaker so that the member for Saint-Jean can deal with her technical issues. She will then be able to resume her speech.
We will move to another speaker for now and come back to the hon. member for Saint-Jean.
Resuming debate, the hon. member for Windsor West.
Brian Masse NDP Windsor West, ON
Madam Speaker, I am thankful for the opportunity to participate again in this process.
I want to thank all the members who were part of this effort, and not only this one but the previous one and even the one before that, which my comments will reflect on.
The former member for Windsor—Tecumseh, Joe Comartin, had a bill that went through this process and it got to the Senate. However, it languished there for a number of years and was never passed. With that lesson in mind, I am hoping that this process will go to the Senate, and the other chamber will be a little more expedient. I thank the government side for its support of this bill, Bill C-218, as well the Conservative Party, and I am hoping that the independent senators will connect and move this forward.
As has been noted, it is very important to acknowledge that things have changed a little, which is one of the reasons why I think the bill before us has more hope and opportunity than the previous ones. The NHL, NBA and other professional sports leagues have not just joined the process of getting this bill passed, but have changed to supporting it from being opposed to it in the past. That related to the fact that they had a monopoly and a system and structure that were based out of Nevada.
The situation with these restrictions today goes back to the United States and the syndicated crime that created Las Vegas. These were struck down by the court's ruling in New Jersey, which said the leagues should not have a monopoly on something that had been invented. They did not necessarily have a right to it. It had evolved over a number of different processes and was shattered, creating these differences.
We are different from other countries in that this type of regulation has come into effect through Europe and other place around the world. We can bet on our phones, we can bet on our computers and we can bet in a number of ways, but that is sending money to organized crime offshore and not helping the public purse. It is not helping people to deal with addictions or to identify strategies.
One of the most important things that we heard at committee was about the responsible gaming element and strategies to have people be registered through the process to get help, to redirect resources to it and to work with people to flag those problems before they get worse. This is as opposed to dealing with bookies in a backyard or over the phone with an offshore account who do everything they can to bait people into gambling more. What is recognized in this process is that we have a responsible, moral and ethical view in dealing with this, because if we do not, we leave vulnerable people in the hands of others.
I will wrap up my comments by reminding members that we have been here before. We had a bill pass in the House of Commons that was pretty much the same as this one and, later on, we had my private member's bill. We have to get this bill to the other chamber and have to get support there. I am working with members in the other chamber already, and I hope all members do.
If we are working on COVID-19, on policy and a whole series of things, one thing we can do right now is direct money away from organized crime and put it to the public good. We are all looking for, and debating, ways to help with the financial constraints during this pandemic. In this situation, more people have been using the online and offshore accounts than ever before.
Unfortunately, right now we cannot help some of the other good industries that are associated with this, like Casino Windsor and other places. However, the reality is that we would redirect traffic from organized crime. If we get this bill, Bill C-218, passed, it promises more resources and more support to make sure that people will be able to do this activity in a responsible, regulated manner.
The Assistant Deputy Speaker Carol Hughes
Resuming debate.
The hon. member for Saint-Jean. It is lovely to see her.
Christine Normandin Bloc Saint-Jean, QC
Madam Speaker, I am pleased to rise today to speak to Bill C-218.
I had the privilege of listening to my colleague from Saskatoon—Grasswood when the bill was introduced and during the first round of speeches. I found his remarks very informative. I am taking the opportunity to speak today, but I do not pretend in any way that I will be able to teach the House as much he did.
Bill C-218 is actually quite simple. It consists of three clauses: one for the title of the act, one for its coming into force and one that proposes to replace a Criminal Code paragraph that currently excludes, from the definition of lottery, “bookmaking, pool selling or the making or recording of bets, including bets made through the agency of a pool or pari-mutuel system, on any race or fight, or on a single sporting event or athletic contest”. This would in effect decriminalize what is known as single event betting, which usually involves sporting events.
This bill kind of reminds me of a cat, not because it winds up sleeping on a shelf like a cat, which is what sometimes happens to certain committee recommendations that certain governments shelve, but because it has had several lives, as some of my colleagues mentioned earlier.
During the 40th Parliament, NDP MP Joe Comartin's Bill C-267 was never called for debate, unfortunately. During the 41st Parliament, NDP MP Joe Comartin once again introduced the bill, this time as Bill C-290, and it progressed a little farther and was passed at third reading without a recorded division. Back then, the current member for Winnipeg North spoke on behalf of the Liberal Party. Bill C-290 then died in the Senate.
During the 42nd Parliament, the NDP member for Windsor West introduced the bill. Unfortunately, it was defeated at second reading by Liberal and Conservative votes. The Bloc Québécois, on the other hand, voted unanimously in favour of the bill.
At the time, one of the arguments for killing this bill was that decriminalizing single sports betting might lead to cheating. That is like saying that leaving sports betting in the hands of organized crime would ensure that cheating does not happen. It is a weak argument, to say the least. Criminalizing something does not make it disappear. It just drives it underground. That is why this bill seeks to take sports betting out of the hands of organized crime.
In the 43rd Parliament, that version of the bill was passed at second reading with only 15 votes against it. Given that the government has introduced Bill C-13, which is substantively similar to this bill, we can expect Bill C-218 to make it to the Senate this time.
There are several advantages to decriminalizing single sports betting. One is that it would protect gamblers. Allowing the mafia to control sports betting opens the door to things like loansharking.
I will echo my colleagues who mentioned the case of the young man in Laval who ended his life in December 2019. He was only 18. The coroner's inquest showed that the man's suicide was tied to an $80,000 debt that he racked up on the Internet, on a gambling site that was run by the Montreal mafia.
According to an article written at the time, the young man gambled online. To access the site, users entered their name and password on the homepage, at which point they could bet on the results of all sorts of professional sporting events, and even on the results of the U.S. presidential election.
According to our research, the name of the site is registered to a corporation in Panama. This site has been hosted on a server in Costa Rica since March 2015 but did not become active until a year later. Using network management tool MyIP.ms, we can see that the corporation that owns the server hosts roughly 75 other online gambling sites. The site ranks 58th in number of visitors with roughly 200 daily visitors. We learned that the Montreal mafia's sports betting was run by a manager and working under him is an assistant and some bookies, in other words, recruiters. The bookies are responsible for the gamblers they recruit. The interest rate for paying off debt climbs by 3% to 5% per week. We are talking about mafia control and loan sharking. In this case, we are talking about people who lost their home because of online sports betting. What is more, there is no way to protect minors, who can easily access these sites.
If the ownership of these sites could be publicly disclosed, particularly by Crown corporations like Loto-Québec, it would mean that we could also expect more money to be injected into the fight against pathological gambling. Crown corporations also contribute in other ways. They give back to society. For example, Loto-Québec sponsors many events, owns and acquires public assets, and funds cultural events. Society will therefore benefit if we take sports betting out of the hands of organized crime.
Another advantage is that we would be be taking money away from organized crime. During an investigation conducted in Quebec as part of Operation Colisée, an expert estimated that, between December 2004 and December 2005, the Rizzuto clan took in approximately $27 million a year from illegal sports betting. We can expect that amount to be even higher now. By taking this revenue away from organized crime, we would be preventing criminals from diversifying their operations. For example, after a major drug seizure, organized crime can turn to illegal betting to survive. By cutting off this source of income, we are hurting organized crime.
Another advantage that my colleagues have mentioned is that governments could see an increase in revenue from decriminalizing single sports betting. Deloitte has pointed out that within five years of decriminalization, Canada's revenues could go from $500 million to as much as $28 billion, which is a handsome sum.
In the U.S., the industry grew after our neighbours to the south legalized it in response to Murphy v. National Collegiate Athletic Assn. More than 25 U.S. states now allow sports betting.
Decriminalization could lead to competition. For example, the casinos in Detroit, Michigan, would be in direct competition with those in the riding of the member for Windsor West. Quebec would be no exception, since New York state has legalized sports betting. Gambling establishments in Plattsburgh, which is less than 90 minutes from the U.S. border, could end up competing with Loto-Québec once the border reopens.
In conclusion, beyond all these advantages, we must not forget the gamblers themselves. In talking with my colleagues, I realize that there is interest in sports betting. Many of my colleagues would very likely be happy to be able to make bets legally, if they could do so without contributing to companies that send their income to tax havens without paying tax. Lastly, they could place bets using French-language platforms.
For all these good reasons, the Bloc Québécois will be pleased to support Bill C-218. We hope that this time, the cat will not have to use up its nine lives.
The Assistant Deputy Speaker Carol Hughes
Resuming debate, the hon. member for Saskatoon—Grasswood has five minutes for right of reply.
Kevin Waugh Conservative Saskatoon—Grasswood, SK
Madam Speaker, the prohibition on single-event sports betting is one where we are all well behind the rest of the world, including our neighbours to the south. I believe, and others believe, it is time that we simply catch up with the rest of the world. Instead of strong regulations and consumer protections, right now we have a system run by criminals and offshore companies. Instead of profits going toward the public good, they are actually going to funding their criminality.
It is time for that to end in this country. There is a clear consensus across party lines that Canadians agree with that tonight. I am very hopeful that in a few moments, we will be able to formalize that consensus and get this legislation sent where it should be, the Senate.
As this will likely be my last opportunity for me to speak in the House on this legislation, I want to thank all the members of Parliament from all sides in this place who have supported Bill C-218 through the legislative process. In particular, though, I want to thank the member for Niagara Falls, the member for Essex and the member for Windsor West for their hard work and support on this file.
I also want to thank the many stakeholders who came forward to provide their expertise and insight to me directly, the justice committee, and all my colleagues for their conversation. Since I brought this bill forward last February, I have heard from provincial and municipal governments, industry organizations, mental health and responsible gambling advocacy groups, amateur and professional sports organizations, sports media and various other groups. All of them provided valuable information, which was so crucial to the development of this legislation.
This could prove to be a historic day for our country. The passage of Bill C-218 here in the House of Commons would be a clear indication that the elected representatives of the people of Canada believe that this change is in the best interest of all Canadians. I am hopeful that upon passage of this legislation, our colleagues in the Senate will take up this legislation with haste, so that this outdated prohibition can finally be removed from the Criminal Code in Canada. It is well past time that we do so again.
The Assistant Deputy Speaker Carol Hughes
The question is on the motion.
If a member of a recognized party present in the House wishes to request a recorded division or that the motion be adopted on division, I would invite them to rise and indicate it to the Chair.
The hon. member for Niagara Falls.
Tony Baldinelli Conservative Niagara Falls, ON
Madam Speaker, I ask that this bill pass on division.
The Assistant Deputy Speaker Carol Hughes
I, therefore, declare the motion carried on division.
(Motion agreed to, bill read the third time and passed)