Mr. Speaker, I am happy to enter the debate on Bill C-13. The bill in its original form was passed by the House of Commons in October 2007. It went to the Senate and the Senate has come back with some amendments. The amendments the Senate is proposing are more in the area of reviewing the bill after certain periods of time and also various reporting mechanisms to ensure the bill is working the way it should.
My colleagues, the member for Moncton—Riverview—Dieppe and the member Notre-Dame-de-Grâce—Lachine, have been the lead on the bill, so I am not here to debate the bill generally. The bill deals with some of the mechanisms of the justice system. Generally it is seen as an improvement on the Criminal Code with respect to criminal procedure, language of the accused, sentencing, et cetera. Some of the amendments make certain processes more effective and efficient through the greater use of technology and by consolidating and rationalizing existing provisions.
The reason I am standing here today is to question a couple of the provisions of the bill. It seems to me if we are to write law in Parliament, the law should be practical, relevant, enforceable and generally have the support of the people. In some cases the latter criteria cannot always be met. Sometimes governments have to take some action that citizens generally would not appreciate. However, generally laws to be effective need to be feasible, operable and enforceable and enforced, otherwise people lose their respect and confidence in the Criminal Code.
I will speak specifically to the question of Internet betting. My riding of Etobicoke North has the Woodbine Racetrack, Canada's national racetrack for horses, thoroughbred and standardbred. It operates year round. It was the host of the Queen's Plate and the North America Cup. It brings a lot of economic activity to Etobicoke North.
The development of a two or three hundred acre plot next to the racetrack will be known as Woodbine Live. It will be a whole gathering of entertainment areas, hotels, shopping and other attractions. This operation brings in many jobs and economic activity to the riding of Etobicoke North. I know the Woodbine Entertainment Group is anxious to employ local people to help build the Woodbine Live project and to help operate it. It is committed to that as am I.
The reality is the racetrack is a legal gaming operation. The Woodbine Entertainment Group used to be the Jockey Club and was renamed some years ago. The group and I have been quite frustrated with the growth in illegal Internet betting, which essentially takes market share away from its legal gaming operations based on the racetrack. We have laws right now on the books that prohibit certain aspects that go on as we speak, and in large volume.
I will go over some of the provisions currently in the act. Bill C-13 would make certain changes to the provisions in the Criminal Code as it relates to unlawful Internet gambling. It perhaps provides greater clarity on what is illegal, and that is a good thing and a positive development. However, it needs to be enforced by the authorities, or we need to change the rules to level the playing field and allow organizations like the Woodbine Entertainment Group to get into the area of Internet gaming, and it would be quite happy to do that.
Right now, because Woodbine Entertainment Group is licensed provincially and because Internet gambling is generally unlawful, it would not engage in unlawful activity in the first place. Second, if it were to, it would jeopardize the Ontario gaming licence.
The Woodbine group is caught in a Catch-22. It is seeing its market share eroded because of activities that are illegal in Canada, but not forced. Yet because of its stringent licensing provisions and its respect for the law, it is unable to get into the Internet betting.
One of the solutions would be for us to ease our restrictions on organizations like Woodbine to get involved in Internet betting. Frankly, I do not see it going away.
We can regulate things like that to death. We can bring in laws, but organizations like the RCMP and the Ontario Provincial Police are not enforcing these provisions. In fairness to them, if they are dealing with drug dealers, terrorists, illegal migrants and other criminal activities, it only stands to reason that enforcing illegal Internet betting is not high on their priority list.
At one level, I can understand that, but at another level, if we have laws on the books, we either enforce them or we get rid of them. Otherwise we create a climate where people have a disrespect for the Criminal Code of Canada.
Allow me to go over some things by way of background. If we look at the situation in Canada, advertisement of gambling on Internet casinos, including foreign lotteries, is currently illegal if not done by the provinces.
We all know about the various lotteries that go on in Canada. Advertising those lotteries, promoting them is legal because it is done by the provinces. Provincial governments in Canada are permitted to conduct, manage and advertise computer-based lottery schemes like Internet gambling, but they cannot license others to do so.
Part VII of the Criminal Code generally prohibits gaming in Canada, but provides for certain exceptions. Among the exceptions are certain gaming activities which can be carried on pursuant to a provincial licence. A broader range of lottery schemes can be conducted and managed by provincial governments. The racing and the gaming activities associated with horse racing by the Woodbine Entertainment Group at the Woodbine Racetrack is authorized and licensed by the province, and constitutes a legal gaming activity.
Let me tell the House what is happening and happening now in greatly increased volumes and having a detrimental impact on racetracks across the country.
It has been a crime for many years to operate Internet gaming websites in Canada, but that has not stopped many offshore companies from soliciting bets from Canadians. These companies have now become so bold that in addition to placing ads in Canadian newspapers and at sporting events, they are now running seminars in Canada to attract people to their websites. When they meet with people, they say that laws in Canada are pretty soft and undefined, so this kind of activity can go on.
Sometimes we see adverts for poker when we turn on the television. They have an interesting segue. They will have a cometopoker.com or whatever it might be. They will allude or suggest that it is a tutorial on how to play poker, but they all have a very simple segue into poker playing for money. Generally they are complying with the law in one sense, but they are abusing the spirit of the law, and I am afraid the government has not done much about it.
The government says that it wants to fight crime and criminality, but many hard-working Canadians are being ripped off and people who work at race tracks that are part of that economic activity are threatened. Legitimate gaming industries in Canada, such as the Woodbine Entertainment Group in my riding and other provincial gaming operations are being impacted by these illegal Internet gambling websites. It is costing them millions in revenue and it is putting Canadians out of work. It is creating jobs and some economic activity offshore.
I must say in fairness that our Liberal government did not take a lot of action on this either. Part of the problem is that law enforcement agencies have so many other priorities that they cannot enforce it. That is why I am coming around to the conclusion that instead of clarifying elements of the Criminal Code, which Bill C-13 does with respect to Internet gaming, and making it more clear, hopefully there is an intent to enforce it, but I do not see that.
I should say that the relevant sections of Bill C-13 are in clause 5, which reads:
5. Paragraph 202(1)(i) of the Act is replaced by the following:
(i) wilfully and knowingly sends, transmits, delivers or receives any message that conveys any information relating to book-making, pool-selling, betting or wagering, or that is intended to assist in book-making, pool-selling, betting or wagering; or
The part of the code that is not being amended is saying that this is a criminal offence. I think that makes it pretty clear, but if it is not enforced, I am not sure that it has any impact.
I have looked at changes to the code but frankly do not see what that will do. It has led me to look at a private member's bill that would call on the banks essentially to intercept Visa, MasterCard, or other credit cards or debit cards that are being used for activities that are illegal.
I think that has actually been done in the United States, but unfortunately it is being challenged under the WTO rules because they limited the exposure to offshore Internet operations. However, there are a lot of onshore Internet operations in the United States also that are conducting these illegal Internet gaming operations, so someone has challenged it under the WTO rules. I suspect they will win that one because it is differentiating between onshore and offshore.
I have a draft bill which I am prepared to move forward with that would call on the financial institutions in Canada to set up regimes that would intercept these types of transactions. The bill would provide for the establishment of payment systems to identify and block financial transactions in the course of unlawful Internet gambling.
I have alerted the banking community, which is not thrilled with this because it is a big cost. It essentially transfers the burden of compliance and enforcement to the banking sector because our Criminal Code is not being enforced right here in Canada.
In the United Kingdom and other parts of Europe they have taken a different tact. They have acknowledged that Internet betting, like other activities that take place on the Internet, are almost impossible to police. We have to take action on some of them of course, such as with respect to child pornography and any criminal activity like that, but it is a tough job finding those links. People are very clever when they set up these linkages. In Europe and certainly in the United Kingdom, they said that they had to create a level playing field. They said that they would just legalize it so that those organizations that are involved in legal gaming activities under licence will not have their licences jeopardized if they get in and compete with those operators who are operating illegally.
That really is the point I would like to make with respect to Bill C-13. Of course I will be supporting the bill because my colleagues have looked at it in some detail. In fact it was passed by the House of Commons last fall. The amendments perhaps add to the bill. The bill does, with respect to Internet gaming, provide greater clarity around what that constitutes.
If we write laws in Canada that are not enforced, or that are impractical, all we do is create a gap of credibility that we all suffer as Canadians. There is no point in putting out the smoke and mirrors and saying we are defining it more carefully if law enforcement officers in Canada are not prepared to enforce the law. Frankly, given some of the other priorities, I can empathize with that position.