Bill C-218 (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.

Justice and Human Rights

[Iqra Khalid, Liberal, Mississauga—Erin Mills, ON]

Madam Speaker, I have the honour today to present, in both official languages, the eighth report of the Standing Committee on Justice and Human Rights in relation to Bill C-218, an act to amend the Criminal Code regarding sports betting.

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

[Vance Badawey, Liberal, Niagara Centre, ON]

Thank you, Madam Chair, for the opportunity, and thank you to committee members.

The effect of this amendment would be to render it identical, in effect, to Bill C-13. Like Bill C-13, this amendment to Bill C-218 would ensure that the parimutuel system of betting used by the horse-racing industry across this country would remain under the regulation of the federal Canadian Pari-Mutuel Agency.

Given the testimony we have heard from the horse-racing industry, stakeholders and the Department of Agriculture and Agri-Food, I believe it is in the best interests of the horse-racing industry to maintain the regulatory status quo. The horse-racing industry's primary source of revenue is wagering through the parimutuel system of betting. We must move to protect this revenue stream for the benefit of approximately 50,000 jobs across Canada.

While this amendment does not address the issue of historical horse racing, as raised in testimony by a number of witnesses, I do believe, Madam Chair, that it is an appropriate amendment and that, in fact, it fits within the scope of Bill C-218.

With that, Madam Chair, I will be voting to support this amendment.

Thank you.

[Vance Badawey, Liberal, Niagara Centre, ON]

Thank you, Madam Chair.

I move that Bill C-218, in clause 2, be amended by replacing lines 5 to 7 on page 1 with the following:

2 Paragraph 207(4)(b) of the Criminal Code is replaced by the following:

(b) 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 horse-race; or

I will leave it at that.

Thank you, Madam Chair.

[The Chair, Liberal, Iqra Khalid]

Mr. Clerk, if you could please let in Mr. Waugh with the consent of the committee....

Are members okay with Mr. Waugh sitting in with us today?

Absolutely. He's been such a great representative, I think, over the past number of hearings on Bill C-218.

[The Chair, Liberal, Iqra Khalid]

Welcome back, everyone. We are now in public and webcast. We will be proceeding with the clause-by-clause examination of Bill C-218.

Mr. Brian Masse will now be replacing Mr. Garrison, and Mr. Badawey is replacing Mr. Kelloway. It's very good to have both of you here today.

To assist us in our deliberations, we have in attendance, in Ottawa, Mr. Philippe Méla, our legislative clerk; and our faithful officials from the Department of Justice, namely, Carole Morency, director general and senior general counsel, criminal law policy section, policy sector; and Michael Ellison, counsel, criminal law policy section, policy sector.

Welcome to both of you. Thank you for being here.

Now we'll go to the clause-by-clause consideration. As members know, pursuant to Standing Order 75(1), consideration of clause 1, which is the short title, will be postponed until the very end.

(On clause 2)

Within clause 2, we have two amendments, namely G-1 and CPC-1. Just so that members understand, I will be calling on G-1 first, because it was submitted first. If it is adopted, CPC-1 cannot be moved as they are identical. For the same reason, if G-1 is defeated, then so is CPC-1.

[The Chair, Liberal, Iqra Khalid]

Thank you, Mr. Fortin.

That concludes our second hour of panellists. I'd like to take this time to thank all our witnesses for their very important testimony and your remarks today.

If you would like to provide further clarification for the committee, I would ask that you please send that to our committee clerk as soon as possible so we can include it in our deliberations.

I have a very quick reminder for the members that the deadline for submitting amendments for Bill C-218 is today at 4 p.m. If you have any questions or any issues with that, please don't hesitate to reach out to me or to the clerk as well.

Thank you all very much.

I adjourn this meeting.

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

Thank you, Madam Chair.

My question is for Mr. O'Donnell.

Could you tell me what your views are on the issue of whether or not to exclude racehorse events from Bill C-218? Bill C-13 excluded them while Bill C-218 includes them. My understanding is that they should be excluded, in your opinion.

I would like to know why horse racing, as opposed to any other sport, should be treated differently.

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

Thank you.

I have a question for Chief Deer.

As I understand it, there has been no negotiation or agreement with Quebec on the issues you addressed in your remarks.

What is your specific request with respect to Bill C-218?

I understood you were going to suggest amendments to us in writing. We will receive them later, but for now, can you give us an overview of your requests?

[John Levy]

Again, I think the issue must relate to what's in front of us right now, which is Bill C-218. What we want to focus on is that we don't want to do anything that's hurting the racing industry. What the amendment that we're proposing will do is it will leave the racing industry in the same position they're in now.

Are there other issues with respect to racing? I'm sure there are. I mean, I used to be in that business. But the reason they're supporting sports betting is that they see it as something that will really benefit horse racing at Woodbine and all of the other tracks, and the horsemen and everybody all across the country. That's why they're supporting it.

If there are other issues to deal with, let's deal with them down the road, but let's bring it in from the cold, from the grey market, and let's bring it into a licensed and regulated [Technical difficulty—Editor] environment. We don't want to miss this opportunity this time. We missed it a number of years ago. None of those dollars were working for any Canadians over the last period of time. Now is the time to solve this problem. If there are other things that would help horse racing in the future, I would be all in favour of looking at them.

[John Levy]

Your question makes an important point. Hopefully, there's no confusion about this.

We support an amendment to Bill C-218 so it basically follows the same approach as Bill C-13, which as written, did have protection for the horse-racing industry. My understanding is that the racing industry is fully supportive of this amendment. You could go into the specific details of it, but without going into the details, it basically protects racing to be able to operate and conduct racing the way they always have, and it didn't get caught up in Bill C-218 with an unintended consequence. It's an amendment to Bill C-218 to bring it in line with what was originally proposed for Bill C-13, which is favourable to the horsemen, and which the horsemen are in favour of and are supporting.

The second element they're talking about, which is historical racing, is an additional amendment. Quite frankly, I don't know what historical racing is. I think there were some comments.... I'm a horseman, too. I know Bill and Sandy directly. I think that may work or not, but it certainly should be debated at some future time.

For now, I think the amendment we are proposing and that's being fully supported by everybody is to bring Bill C-218 to look like Bill C-13. Get it passed. Let everybody win, having betting be a part of a licence agreement impacted by it.

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

Thank you, Madam Chair.

I thank the witnesses for being here today. It is always important to have different perspectives on important issues like this.

My first question is for Mr. Levy. I understand from your testimony, Mr. Levy, that you believe that Bill C-218 is a good bill, but that ultimately it should be Bill C-13, since you say that horse racing should be excluded from this authorization. I clearly understood your testimony on that.

I would like to know the reason why, in your opinion, horse racing should be excluded from Bill C-218.

[Vance Badawey, Liberal, Niagara Centre, ON]

Thank you, Madam Chair.

May I take this opportunity to first acknowledge that the lands that I'm speaking from here in Niagara are those of the Haudenosaunee and Anishinabe peoples. With great respect to those in the past and still residing here, I give that mention.

With that as well, I do want to thank many members for their bipartisan effort, there's no doubt, throughout the many years of this bill, Bill C-218, being brought forward. To those members, such as MP Irek Kusmierczyk, Brian Masse, Kevin Waugh and Minister Lametti, thank you for bringing this forward and putting it on the table. It's long overdue.

Folks, I think for the most part this bill attaches itself to equitable economic benefits for those across the country. As well, it brings something above ground, legalized wagering for single sport betting, and therefore it's not part of the grey market as it has been in the past.

Being from Niagara, I'll say there's no question that we are positioned to benefit. We are a border community, with two major casinos within an area that attaches itself to a great number of people.

I want to go back to that word “equitable”. With that, here in Niagara, hundreds, if not thousands, of jobs will be created. Tens of millions of dollars will be made. Of course, the equitable balance is going to place us with our competition across the border and there's no doubt we'll benefit.

Putting all that aside, I want to prioritize my time with our indigenous community.

Chief Deer, as well as Chief Delisle, sekoh. It's great to see you folks and I appreciate the time that you're giving us.

You both spoke earlier, and Chief Deer, you in particular had run out of time. With all due respect, I want to give you that time right now, with my time, to expand on some of the comments and points that you were about to make. I feel that a lot of what you and the indigenous community are discussing is very important to create that equity and to ensure that it is a partnership between the provinces and territories, and of course, the federal government.

With that, Chief Deer, I'll go straight to you and allow you to finish some of the topics that you were discussing earlier.

[John Levy]

I think that's kind of the way we are. When we launched our TV network in Canada—and thank you for your question—we were up against the big boys here in Canada, too. We launched in the mid-1990s. TSN had a 10-year head start on us. Rogers was launching Sportsnet. We have never been afraid of competing.

For us, it has always been about having the customer come first. Sports betting was really just a natural extension for us in the context of serving the needs of our consumers.

The repeal of the single-event wagering and introducing Bill C-218 and having it pass would be of enormous growth, not only for our company, but for all Canadians. We're already experiencing what that looks like in the U.S., where we have launched in four states, working with regulators and creating technology that allows us to be part of the solution and not part of the problem, which I think is very important.

We're very excited about the prospect of being able to execute on our home turf and satisfy the needs and the passions of our millions, literally, of sports fans all across Canada who are looking for sports wagering.

[John Levy]

Madam Chair, first of all, thank you for providing me with an opportunity to articulate our full support for Bill C-218 and the legalization of single-event sports betting in Canada.

I'm proud to appear before you today on behalf of theScore, a Canadian innovation success story and third-generation family business. Following in the footsteps of my father, who is a pioneer in the Canadian cable television industry, we have built theScore into a North American leader in sports media, betting and e-sports. Utilizing a technology-led, mobile-first strategy, theScore has become one of the most popular sports media apps in North America. We then capitalized on the emerging regulated sports betting opportunity in the United States and launched an innovative mobile sports book operation that is now licensed in multiple jurisdictions.

In September 2019, we debuted theScore Bet, making history by becoming the first media company to create and operate a mobile sports book in the United States, and theScore Bet is now live in four states with a growing footprint and user base. Our early entry into regulated sports betting has positioned us at the forefront of the robust industry and led to significant growth of our company. In two years our workforce has increased by more than 50% and we're actively hiring at an accelerated pace to support the rapid expansion of our sports book operation.

Canada is now poised to usher in this vibrant industry that has potential to be transformative to our economy. Sports betting has flourished in the U.S. since legalization in 2018. It's created thousands of jobs, generated additional advertising revenue for sports media platforms and sponsorship revenue for teams and leagues, and produced significant tax proceeds for the states where it's legal, all providing a highly regulated system for fans to feel comfortable placing bets on the teams and sports they love. It's clear that a similar thoughtful and modernized legal wagering framework would benefit all Canadians.

The essential component of the public policy conversation around this bill is underscored by quoting the bill's name in full: Safe and Regulated Sports Betting Act. Unregulated and illegal sports gambling is rampant across our country and offers no consumer protections or tax revenues for the provinces. Sports wagering needs to be monitored and regulated with comprehensive oversight to protect the consumers.

Bill C-218 will allow the provinces to implement necessary consumer safeguards to provide for a safe and responsible sports wagering environment. These have been established by provincial and territorial governments for other forms of wagering over decades. Single event sports betting will seamlessly integrate within these regulatory frameworks already in place.

We urge the House of Commons and the Senate to pass Bill C-218 as quickly as possible. In connection with the legalization of single event sports wagering, we acknowledge the need for the horse-racing industry to be safeguarded. We note that Bill C-13, the government version of this legislation, contained language to properly address this issue, and we support an amendment to Bill C-218 that would replicate the approach of Bill C-13, thereby ensuring that the interests of the horse racing industry are protected.

Time is of the essence with the passing of this bill. These gaming revenues represent a significant boost to a recovering economy by incenting job creation and regional economic development in many communities that will see direct and immediate benefits. Until the bill is passed, consumers will continue to remain exposed as they engage with unregulated outfits. There is now widespread industry and clear cross-party support to amend this outdated federal law, and it's time we seize this opportunity.

I thank the members of the committee for their consideration and thoughtful deliberation of this bill and the opportunity to provide my perspective and recommendation.

Members of the committee, thank you very much.

[Chief Michael Delisle Jr., Chief, Mohawk Council of Kahnawake]

Thank you, Chief Deer.

I'll start with a brief history of gaming in Kahnawake. The Kanyen'kehà:ka, Mohawk in English, have engaged in gaming and sports betting since time immemorial, a fact that has been confirmed by historical research. Games of chance and wagering on sporting events such as lacrosse have always been and continue to be an integral part of Kanyen'kehà:ka culture and central to our relationships with other nations. In 1996, as an assertion of our inherent right to self-determination, Kahnawake enacted the Kahnawake gaming law, an assertion that is clearly also reconcilable with subsection 35(1) of Canada's Constitution Act, 1982.

Over the following 25 years we utilized our own ingenuity and resources to build a successful, sound and reputable gaming industry in both the online and land-based sectors. Online and land-based gaming in Kahnawake is licensed and regulated by the Kahnawake Gaming Commission. Its pragmatic and thorough approach to regulation has earned the commission a reputation of being fair, diligent and well respected.

From an economic perspective, gaming in Kahnawake is a socio-economic initiative. Gaming produces significant revenues that are used for a variety of community projects we would not otherwise be able to recognize. It employs hundreds of people, both from Kahnawake and elsewhere, and facilitates valuable workforce development.

Kahnawake's sports betting brand, Sports Interaction, is operated by Mohawk Online, a company wholly owned by the Mohawk Council. Profits from Sports Interaction have been benefiting our community and have most recently provided us much-needed relief from costs stemming from the COVID-19 pandemic.

The Kahnawake gaming industry is a perfect example of an indigenous community's succeeding. We are facilitating economic self-sufficiency to take care of our evolving needs. In our 25 years of operation we have exercised our jurisdiction over gaming openly and conscientiously. We have done so with the knowledge and support of members of the current federal government, such as Minister Lametti.

First, we must be clear that Kahnawake does not take issue with the intent of the code being amended to permit provinces to facilitate sports betting. We recognize Bill C-218 as a positive move forward for Canada's gaming industry. However, we do take issue with the bill's failure to consider, accommodate and reconcile the interests of indigenous peoples.

In its present form the bill threatens the economic resilience of Kahnawake's gaming industry. Simply put, Bill C-218 perpetuates an injustice to indigenous communities that resulted from an agreement between Canada and its provinces in 1985, whereby authority to conduct and manage gaming was exclusively delegated to the provinces. At that time indigenous peoples were not consulted, nor were our interests considered or accommodated. We were simply closed out. What happened in 1985 was a stain on the honour of the Crown.

While it is true that since 1985 some provinces have made efforts to accommodate indigenous interests and share some portion of gaming revenues, this is not the case in Quebec. To date, Quebec has not entered into any agreements to share in gaming revenues with indigenous communities, nor has it ever indicated a will or intent to do so. In short, advancement of Bill C-218, unless it is amended, will result in a deepening of the injustice experienced by indigenous communities, including Kahnawake, since 1985. Worse, Kahnawake's gaming industry will so severely be affected it could face total decimation.

The present state of the single events sports wagering market is frequently described as being under control of either organized crime or offshore interests. To be very clear, Kahnawake's gaming industry is not operated by organized crime nor offshore interests. The fact is we occupy ourselves with good and honest social responsibility and have built a gaming industry that we stand behind as being integrous. This fact must be considered in your deliberations.

I'll pass it back now to Chief Deer.