Mr. Speaker, Canada is unique among the nations of the world in having two popular venues for international cruise ships that involve sailing
within Canadian domestic waters. These venues are the St. Lawrence River and the west coast's inside passage.
As cruise ships sail from international waters toward the St. Lawrence River they pass into Canadian domestic waters. From a location near the island of Anticosti and on into the St. Lawrence River, these domestic waters are provincial waters.
Typically, international cruise ships on the inside passage between mainland British Columbia and Vancouver Island sail a round trip route between Vancouver and Alaska. Under the Canadian interpretation of the law of the sea, vessels on the inside passage route are either in U.S. domestic waters or Canadian domestic waters. They do not traverse international waters.
The Canadian Arctic represents a third, albeit less travelled, venue for international cruise ships where extensive sailing within Canadian domestic waters might be involved, again on the Canadian interpretation of the law of the sea.
There are several other Canadian ports or sailing venues which international cruise ships could visit during favourable seasons of the year. These would involve less extensive sailing in domestic waters, including provincial waters.
Shipboard casinos with slot machines are part of the entertainment mix that is offered by international cruise ships to their passengers. Apparently these casinos are valued by these passengers. Shipboard casinos generate revenues for the cruise ship companies and the ability to operate a casino would probably factor into a company's choice of its cruise routes.
For their part, Canadian port communities are anxious to have the added tourism and industry that cruise ships may bring, including return visits to the area by former cruise ship passengers with land and air transportation.
I am sure that the Canadian government appreciates that international cruise ship interests and Canadian port communities are deeply concerned about this issue. It is important to note that there have been several other requests for private commercial gaming in domestic waters on vessels that are not international cruise ships.
I believe that the issue of private commercial gaming in domestic waters of Canada should be considered and addressed comprehensively. Our consideration should not be limited to international cruise ships.
The gambling provisions of the criminal code are contained in part VII. They can be generally described as prohibiting all forms of gambling except those that are specifically allowed under the code.
As an exception to the lottery scheme offences in section 206 of the code, section 207 provides that provinces and territories may operate a broad range of lottery schemes, not including slot machines. These permitted lottery schemes may only operate within the province or territory or within another province or territory where there is co-operation from that other jurisdiction.
It would appear that the provincial government could presently choose to operate a casino with slot machines but not dice games on a vessel within provincial waters. However, a province could not operate such gambling in Canadian waters that are not provincial waters.
Similarly, while a province might conceivably issue a licence for a lottery scheme that is conducted within provincial waters, it appears that the licence cannot cover a lottery scheme that is operated in domestic waters that are not provincial waters.
Currently the provisions of the criminal code give no permission for private commercial gambling except on a very small scale and only where the province or territory is issued a licence. Under section 207 of the criminal code, the price to participate in a licensed private commercial lottery scheme must be $2 or less and the prize offered must be $500 or less. Very few Canadian jurisdictions choose to licence any private commercial lottery schemes.
Paragraph 202(1)(b) of the criminal code makes it an offence to import into Canada any machine or device for gaming or betting. While there is an exception in the gambling provisions of the criminal code for importing gambling equipment that relates to a lawful lottery scheme such as a provincially operated or provincially licensed lottery scheme, there is no similar exception related to international cruise ships with unregulated private commercial casinos. It appears that even where gaming equipment is not operated while in Canadian waters, an international cruise ship which carries its own slot machines or its own table casino games within domestic waters of Canada would technically violate the present provisions of the code.
As we all know, the enforcement and prosecution of criminal code offences has been assigned in the provinces to the attorney general of each province.
I believe, in response to international cruise ship interests, Bill C-369 proposes a criminal code amendment that goes beyond simply legalizing the presence of gaming equipment on international cruise ships while these ships are within domestic waters. The changes proposed in Bill C-369 would significantly alter the present gambling provisions of the criminal code.
Bill C-369 proposes amendments that would legalize the unregulated operation of a private commercial casino on an international cruise ship within the domestic waters of Canada. This differs markedly from the approach that the province of Quebec wishes to take if the criminal code is amended to allow casino gaming on international cruise ships in domestic waters.
In 1996 the province of Quebec passed legislation that would permit the establishment of provincial licensing for private commercial gaming operations on international cruise ships that are within provincial waters. This licensing would apply to cruise ships that are on an international voyage. Quebec recognizes that prior to the provincial licensing legislation becoming effective, an amendment to the gaming provisions of the criminal code would be required.
One of the greatest concerns related to the legalization of gambling is ensuring that there is integrity in the gambling. Regulation is a necessary part of accomplishing this. Regulation ensures that security features such as background checks on operators, suppliers, investors and key employees are in place. It also ensures that surveillance features, including monitoring for cheating at play and auditing, are in place.
Bill C-369 provides for unregulated casino gambling in Canadian waters. It does not address the issue of ensuring the integrity of the gaming that would be offered within Canadian waters.
The second notable aspect of Bill C-369 is that it would significantly expand the narrow window that exists for private commercial gaming in Canada. The present window is so small that the Canadian approach in effect is to legalize large scale gaming only where it is operated and licensed by a province or territory. Virtually all Canadian gaming profits go to public purposes, whether it is through licensed charities or through government revenues.
This Canadian approach to the proceeds of gaming differs from the U.S. approach to casino gaming which typically sees profit going to private interests with government taxation of these profits. Bill C-369 would would present a major shift in gambling policy that should only be pursued after careful consideration of the implications.
The third notable aspect of Bill C-369 proposed the introduction of the word casino into the Criminal Code. The term casino is not defined in Bill C-369 but is left to be defined by the regulation made by the Attorney General of Canada within six months of this bill's coming into force. Presumably in defining the term casino by regulation the attorney general would have unlimited discretion to list the forms of gaming that may occur within a casino.
It appears that international cruise ship lines see slot machines as pivotal to their casino operations. Under the bill it might be argued that the attorney general through the regulations that would define a casino could effectively authorize certain forms of unregulated gambling on international cruise ships which a province cannot licence such as slot machines or which a province cannot even operate such as dice games.
There are a number of other considerations that time will not permit me to put forward. However, as has been indicated, we
prefer a comprehensive review of the provisions of the Criminal Code with regard to gaming in waters in Canada.
We thank the hon. member for putting forward this bill to aid the consideration of that issue.
