Gaming Law International

Ontario Plans to Ban Advertising of Offshore Internet Gambling Sites

The Ontario provincial government is considering amending its Consumer Protection Act, 2002, to prohibit the advertising of Internet sites that operate an "Internet gaming business" contrary to the Criminal Code of Canada. An "Internet gaming business" means a supplier that accepts or offers to accept wagers or bets over the Internet as part of the playing of or participation in any game of chance or mixed chance and skill outside Canada or on any contingency or on any event inside or outside of Canada including a casino game, card game, horse race, fight match, sporting event or contest. Advertising includes promotion by print, publication, broadcast, telecommunications, self-promotion and a website link if it is intended to promote the use of an Internet gaming business.

The proposed bill, Bill 152, also prohibits persons, other than Internet service providers, from arranging for or otherwise facilitating the advertising of online gambling sites.

Bill 152 is supported by Ontario's horseracing industry which has lobbied the government for several years to take action to ban the people of Ontario from gambling online, a move they say will ensure the economic viability of the industry.

Manitoba Aboriginal Bands Asking for 12% of Provincial Gaming Revenues

Aboriginal bands in the Canadian province of Manitoba are asking the provincial government for 12% of the annual revenue generated from all sources of legalized gambling in the province, including lotteries. Aboriginal bands say they represent 12% of the population in Manitoba and are entitled to a revenue sharing arrangement in proportion to their population. The provincial government has confirmed that it may consider a revenue sharing arrangement in the future. Aboriginal bands in Manitoba already keep all the profits from casinos on reserves and 90% of the revenues from VLTs located on reserves.

The aboriginal position ignores the fact that there are significant costs associated with the regulation of the gaming industry for the province and significant costs for managing and administering the lotteries. A revenue sharing arrangement based on population would mean that aboriginal groups would in effect receive a much greater percentage, likely closer to 18%.

The province is also considering permitting the establishment of a provincial aboriginal gaming commission that would oversee regulation of the gambling industry for on-reserve gambling.

Two Gamblers Can't Collect $209,000 Slot Machine Win

Two men in Manitoba who won $209,000 playing the slots at a Winnipeg casino are being told by the Manitoba Lotteries Corporation that they cannot collect their win because a software error caused the slot machine to register an incorrect amount. The players are contemplating suing the Manitoba Lotteries Corporation over the issue. You can read the story here on the CBC News. A similar situation occurred several months ago when a lawyer in South Africa won $7.9 million from a slot machine but could not collect her winnings from the KwaZulu-Natal Gambling Board because of an apparent slot machine malfunction. You can read that earlier post on Gaming Law International here.

Biting the Bullet for Online Gaming in Canada

This post is about the law, politics and economics – and how all three are grappling with one of British Columbia's fastest growing businesses.

The business is online gambling, and it’s a tidal wave. Assisted by the popularity of sports wagering and the resurgence of poker as a mainstream recreation, online gambling is one of the fastest growing activities of British Columbia consumers. The problem? The actual businesses aren’t in British Columbia. They’re offshore companies (some of them publicly listed on foreign stock exchanges) that are draining gamblers’ money out of the province and leaving too little behind in the way of benefits.

Online Poker in Canada? Maybe.

I attended the 10 Annual Canadian Gaming Summit & Exhibition in Vancouver today - there was a Lottery & Gaming CEO Plenary Session in which several heads of the provincial lottery corporations answered questions. The most important topic in my view was the discussion surrounding legalizing online gambling in Canada. Some of the lottery CEO were openly supportive of the legalization of online gambling; others were not so supportive and were concerned with the potential negative public reaction to legalized online gambling. I'll post more about this in the days to come but for now I still believe that 2006 will be a watershed year for online gambling in Canada (see my prediction posted early January '06).

Canadian Gambling Billionaire's House Raided

Canadian online gambling billionaire Calvin Ayre's home in Costa Rica was raided by police today, apparently because of a mistaken belief that he was hosting a poker tournament at his home. An interview between Ayre and CTV News can be read here. Ayre is on this month's cover of Forbes magazine.

Anti-Online Gaming Advertising Bill for Ontario?

A private member's bill (Bill 60) was introduced in the Ontario Legislature last week, which if passed, would amend the Consumer Protection Act to prohibit the distribution or advertising of online gaming or gambling web addresses in Ontario unless the advertiser believes that the online gambling business is authorized to provide online gambling services in accordance with Ontario and Canadian law.  The amendment would apply whether the "game" occurs inside or outside of Canada. The Bill is odd in that gaming is regulated provincially and there is no "Canadian authority" that has the jurisdiction to authorize Internet gaming. Moreover, to the extent that the Canadian Criminal Code permits online gaming, the operation of it must be conducted by the provinces themselves. The aim of the Bill appears to be to prevent the people of Ontario from locating online gambling sites operating off-shore. This would require restricting the availability of information on Google-type sites in Ontario - a very un-Canadian proposition.

Gaming Law International

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