Good morning, Madam Chair and members of the committee.
My name is Bill Ford, and I'm here today on behalf of Racetracks of Canada. I appreciate the opportunity to speak.
Racetracks of Canada is a national organization representing over 40 racetracks across the country. Some are large like Woodbine in Toronto, but the majority are smaller seasonal tracks that play vital roles in their respective communities, many of which are in rural Canada.
Before turning to my substantive comments, I would like to provide some key statistics from a 2019 Jockey Club of Canada report on the Canada-wide economic impact of horse racing and breeding: $2.9 billion in value-added GDP; 56,000 full-time equivalent jobs; $2.1 billion in wages and salaries; and $1.2 billion in tax revenues to all levels of government.
I'm not here today to speak out against the sports betting bill. Over the last several months, our industry has stated its support for the legalization of fixed odds, single-event sports wagering in Canada. The horse-racing industry is particularly well suited to speak to the benefits of legal and properly regulated wagering in Canada. Black and grey markets benefit nobody.
However, it is vitally important that the legislative process considers the unintended consequences should the horse-racing industry not be protected.
Today, the horse-racing industry's business model is supported by parimutuel wagering. Section 204 of the Criminal Code establishes the parimutuel wagering system on horse racing when regulated and approved by the Minister of Agriculture and Agri-Food. Under the ministry, the Canadian Pari-Mutuel Agency, commonly referred to as the CPMA, has been set up as the industry's regulator.
The parimutuel system works as the house takeout is used to sustain the industry through payments to participants. Further, to obtain a parimutuel betting permit from the CPMA, a racing association must show that it has an agreement in place with its local horse people's group. This ensures that all stakeholders are invested in the parimutuel model.
Private member's bill C-218 as currently drafted could allow provincial lottery schemes and other licensed organizations to offer fixed-odds betting on horse racing. This could be done without any contributions back to the industry.
Bill C-13, which was another bill recently introduced by the federal government to legalize fixed-odds single-event sports wagering, included language that would prohibit any organization from accepting a fixed-odds wager on horse racing, ultimately protecting the industry from the risk highlighted earlier. We are strongly asking for the same protection in Bill C-218. Our industry and stakeholders need it.
That said, we can see the writing on the wall. The legalization of single-event sports betting will see the influx of massive foreign companies and leagues entering the Canadian wagering market. Competition will be severe, and racing will see market share shrink over time. It could potentially result in the closure of some tracks, which are already on the brink of financial non-viability, and the loss of thousands of jobs.
To that end, we are also requesting that historical horse racing be legalized. Historical horse racing is a parimutuel gaming product where individuals can place a wager on the outcome of races that have occurred in the past. Historical horse racing is currently prohibited by the Criminal Code, despite its being a proven and legal product in many jurisdictions.
With a simple change to the Criminal Code to allow for bets to be taken on an event that has taken place in the past, historical horse racing could be quickly introduced into the market, and would provide the entire horse-racing industry with a substantial and much-needed new revenue stream. This stream would be particularly beneficial to the smaller tracks that only run seasonally for a few weeks a year.
The industry has been speaking to the CPMA for years about the possibility of introducing historical horse racing to Canada. The CPMA has stated it is prepared to regulate it as a parimutuel wagering should the Criminal Code be amended.
In conclusion, Madam Chair, the horse-racing industry and Racetracks of Canada are supportive of the legalization of sports betting in Canada. However, it cannot be at the expense of a well-established industry that supports thousands of jobs and is the lifeblood of many rural communities.
Done correctly, single-event sports betting can create new jobs for Canadians and generate new revenues for the government all while protecting another industry, the horse-racing industry.
Thank you.