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.

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

Thank you, Madam Chair.

My question is for Mr. Burns.

Right now, Canadian gamblers must go on websites or abroad, such as to a number of American states, which allow single-event sports betting. I am still obviously talking about single events.

If Bill C-218 is passed, people will be able to bet on single sporting events in Canada.

Beyond the impact and the inflow of Canadian money related to single-event sports betting, what impact could this have in terms of foreign money that would ultimately be invested in casinos or other entities, here, in Canada?

[Chris Lewis, Conservative, Essex, ON]

That's great. Thank you.

Mr. Dias, wouldn't passing Bill C-218 represent an expansion of gaming in this country? So isn't that in essence really what we're voting for?

[Jerry Dias, National President, Unifor]

Good afternoon, Chair, and members of the standing committee. It is a pleasure to have been invited to speak to you here today. My name is Jerry Dias, and I am the national president of Unifor, which is Canada's largest private sector union.

Unifor represents 315,000 members across nearly all major sectors of the economy, from coast to coast, including approximately 11,000 gaming workers across the country. We have members working at the Parq Casino in Vancouver, at Manitoba lotteries, and at Caesars Windsor and Casino Rama, just to name a few.

It is on their behalf that I am speaking today when I share Unifor's support for Bill C-218, the safe and regulated sports betting act. We believe the federal government should act now to permit single-game sports betting so this gaming activity can be regulated and so our federal and provincial laws and regulations support safe and responsible gaming policy.

Unifor has been advocating for this legislation on single-game sports betting for several years, because we know first-hand that responsible gaming must take place in a professional, properly regulated and fairly taxed environment. Our members and elected leaders—leaders like Dave Cassidy, president of Local 444 in Windsor, Ontario—have been strong and vocal advocates for this legislative change. Local 444 represents 2,300 members working at Caesars Windsor.

In addition, Unifor's hospitality and gaming council, a leadership group elected by and representing 22,000 workers in the hospitality and gaming sector, has endorsed the legislation and regulation of single-game sports betting. Our workers and leaders in the sector know that regulated gaming supports our communities through good unionized jobs, provides business for the broader tourism and hospitality sector, and drives much-needed revenue streams for local, provincial and federal governments.

For many years, some of the biggest opponents to single-game sports betting were the professional sports leagues themselves. However, over time, technology has changed, regulation and enforcement have changed, and public sentiment has changed. Reflecting this shifting, evolving understanding of responsible gaming, many professional sports leagues have revised their position. In June 2020, the NBA, the National Hockey League, Major League Baseball, Major League Soccer and the CFL issued a joint statement supporting the legalization of single-game sports betting in Canada. These leagues recognize the same fundamental truth our members and local leaders do, and that is this: single-game sports betting already takes place in Canada every day, but right now it is illegal, illicit, unregulated and unmonitored. By now, you've probably heard—which you have—that sports betting in Canada is a $14-billion-a-year business, and that only about $500 million of that is spent on legal provincial sports betting. The other $13.5 billion is spent through offshore organizations and illegal bookmaking operations.

In other words, in reality, Bill C-218 isn't about bringing single-game sports betting to Canada. It's about creating a legal framework that will establish a legal and regulated sports betting market in Canada, which would in turn increase consumer protections, help support responsible gaming measures, and protect the integrity of the sports themselves.

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. As you witnessed just last week, Bill C-218received overwhelming support at second reading, with 303 members voting in favour. For our members working in the gaming sector, their families, and their communities, this show of support is great news.

I'd like to close by reiterating Unifor's support for Bill C-218. It's time to bring legal and regulated single-game sports betting to Canada.

Thanks very much and I look forward to your questions.

[Shelley White, Chief Executive Officer, Responsible Gambling Council]

Good afternoon, Madam Chair and members of the Standing Committee of Justice and Human Rights. Thank you for inviting the Responsible Gambling Council to share our perspective on Bill C-218.

RGC is a respected Canadian not-for-profit organization whose mission is to prevent problem gambling and reduce its impact. Canada is considered a leader in responsible gambling. We're proud to be part of this discussion on the legalization of sports betting.

Our position on gambling is neutral. Gambling is a legal activity in Canada, and as such, we exist to ensure safeguards are in place to minimize the risks associated with gambling.

For over 35 years, RGC has worked closely with regulators and operators to provide strategic guidance, research and accreditation. It works with the public to deliver education and information, so they can make informed decisions about gambling.

We are gratified by our work and how it influences a safer gambling industry. For instance, we prepared the responsible gambling Canada review for Paul Burns and the Canadian Gaming Association, which Mr. Waugh referred to on Tuesday.

For over the last few years, sports betting has grown in popularity, and with it, the body of evidence to suggest who's gambling, the issues associated with sports betting and how to support a safer sports betting industry.

According to the 2018 Canadian Community Health Survey, sports betting prevalence in Canada is 7.9%, with Alberta and Manitoba showing the highest proportion of participation.

A survey that RGC conducted in August 2020 with Ontarians asked about their participation in live, online sports betting with a bookmaker. Sixty-two per cent of males responded that they had participated. Thirty-four per cent of respondents had recently lost employment or reduced hours of employment. Thirteen per cent screened with severe anxiety. Forty-seven per cent positively screened for problem gambling. Over one in 10 intend to gamble online post-COVID-19, and 5% intend to increase their online gambling when more options are available in Ontario.

While this study was about gambling during COVID-19, we know that the impacts from the pandemic will be long-lasting. This study clearly underscores the importance of prevention safeguards as a priority as governments seek to provide broader exposure to gambling.

While gambling has existed in Canada for many years, it's important to take note of how sports betting differs from other types of gambling. Sports betting ties gambling to a favourite pastime enjoyed by millions of Canadians. This association normalizes the gambling activity. Added to this, sports betting has the added complexity of tying emotion into the gambling experience. The emotion associated with the heat-of-the-moment game play can make informed decision-making about money and time spent playing more difficult.

It is with these people in mind that we speak to you today. RGC believes that it's in the best interest of Canadians and Canadian society as a whole that Bill C-218 be passed. It is with this evidence and Canadians' best interests in mind, that RGC recommends the following to the committee.

First is that the legislation of single-event sports betting include a robust regulatory framework that requires provincial regulators and operators to prioritize and integrate consumer protection within their strategy, including adherence and accountability to the highest standard of responsible gambling.

Second is that the federal government continue to champion the prevention of addictions and preservation of individuals' mental health and well-being, in accordance with Canada's Mental Health Commission strategy . This can be achieved by prioritizing consumer safety and supporting the provincial authorities to develop comprehensive responsible gambling strategies as well as build their capacity to support individuals and their communities when they introduce legalized sports betting.

The good news is that we don't need to recreate the wheel. Most of the standards already exist and are in place in land-based gambling. We also have the benefit of lessons learned from other jurisdictions.

In closing, Madam Chair and members of the standing committee, it 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 thoughtful and intentional approach will demonstrate Canada's commitment to prosperity as well as the health and well-being of Canadians and society. Thank you.

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

Are you sure that, if Bill C-218 was passed, we could avoid the fixing of single-event sports in Canada?

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

Okay. I have two and a half minutes.

It will go by quickly.

As my colleague said concerning sports betting, the more I hear about it, the more I realize that I don't understand a thing, but that's another story.

Mr. Ellison, in your opinion, if Bill C-218 was passed as is, would the Criminal Code or the Canadian legislation make it possible to properly control problems that are potentially related to the fixing of single-event sports?

If not, what could we do to improve the legislation?

[Michael Ellison]

I suppose I can answer that question.

Under either of the bills that are before the House, Bill C-218 or Bill C-13, we don't have a way to say that all illegal betting would be brought into a legal market.

[Michael Ellison]

The main difference is that, of course, Bill C-218 has a complete repeal of the paragraph. Bill C-13 would maintain most of the language. It would remove all of the references, other than that we would insert a reference essentially under that bill to horse racing. It completely excludes any system of betting on horse races from provincial and territorial authority. That would very clearly maintain the long-standing role of the CPMA, while opening up all other forms of single-event sports betting or betting at athletic contests or fights—anything of that nature—for the PTs. They could regulate any of those products as they see fit.

I hope that answers your question—

[Brian Masse, NDP, Windsor West, ON]

Yes. I hope, Madam Chair, I don't lose my time. I'll be really quick to try to catch up.

Just with regards to C-13 and C-218, the Speaker ruled that they're the same. I was just questioning Ms. Foss with regards to the sustainability of her program. This is the germane part between the two. Could you provide your professional commentary on the differences of the bills, and on if we amended it, and it still doesn't solve our problem?

[Brian Masse, NDP, Windsor West, ON]

Thank you.

Maybe I can move to you, Mr. Ellison, with regard to that. You distinguished the difference between Bill C-13 and Bill C-218. Can you talk a little bit about that change there? I had argued to keep both bills going. The Speaker ruled that they're the same.

What's your reflection on that? Could you provide your professional opinion on that?

[Michael Ellison]

To get to the point as quickly as possible, because I know we don't have a lot of time, there are agreements in place between provinces and territories and indigenous peoples. Whether it's an indigenous nation within the province or a community or an organization, those agreements can involve indigenous peoples and they can have a direct effect on them. For example, the Province of Saskatchewan and SIGA have a very comprehensive agreement in place that deals with revenue sharing and whatnot. Bill C-218 can have an impact on indigenous peoples by affecting those agreements, and the ability of provinces and territories to offer additional products would also allow indigenous operators to offer additional products as well if there was an agreement in place between them and the province or the territory.

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

Apologies, I don't mean to interrupt, but we don't have much time.

If I understand correctly, you are saying that gambling is not currently taking place on first nations lands. So the impact of Bill C-218 would be the same on first nations lands and among civil society in general. Is that right?

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

Thank you, Madam Chair.

Mr. Ellison, I would like to know what you think about the current legal status of gambling on first nations reserve lands. We know gambling is taking place there.

Also, if passed, what impact would Bill C-218 have on that gambling?

[Michael Ellison]

As Ms. Foss described, parimutuel betting is a form of pool betting. While I would defer to her on the specifics of the exact operation of parimutuel betting, it is essentially a form of pool betting. All interested bettors on the outcome of a horse race pool their bets together. A levy is taken out of that pool for the operation of the CPMA and to help pay for the horse industry in general, including the race operators. The remaining money, depending on the outcome of the race and which horse was bet on, is then divided up between them. That is the pool-based system.

The difference between that and single-event sports betting is that...essentially there is no difference. Single-event sports betting is legal in Canada in one form, and that is parimutuel betting, because ultimately this parimutuel betting system that's in place, which is regulated by the CPMA, is a form of betting on the outcome of a single sporting event.

While Bill C-218 seeks to decriminalize single-event sports betting, it does so when we're talking about provincial and territorial powers. The bill would propose to decriminalize single-event sports betting, including betting products and games of chance, however they are set up by the provinces and territories within their structure of lottery schemes.

To quickly sum up, parimutuel betting—as it's constructed under the CPMA currently—is one form of single-event sports betting, but there are no other legal forms of single-event sports betting today.

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

Yes, I knew that. Thank you, though, for confirming that.

Mr. Hansen, thank you for coming to committee today.

So much has been said about the casinos in Niagara Falls, along with Windsor. I brought you to committee—and you accepted—because of the indigenous aspect. This bill, Bill C-218, has a broad effect across the country. You had a very good statement today. You employ up to 1,800 people or more, and 65% of those are indigenous. This is the group that I feel in our province needs hope and opportunities. I think this bill's going forward gives your company and the people of Saskatchewan an opportunity for hope and employment because coming out of COVID is going to be, as you said, extremely difficult.

Could you comment on that?