GPWA Times Magazine - Issue 50 - August 2021

THE CURRENT AND PROPOSED NEW LAW Historically, Canadian Provinces have been restricted by federal legislation that only permits parlay betting, or a wager on the outcome of multiple events. While our neighbors in the U.S. have legalized single-event sports betting in over 25 states, Canadians have been restricted to placing only parlay bets with provincial operators. The majority of punters favor bets on individual events, but are still currently tied into parlays, and this is one reason that Canadian punters have been taking their business to offshore operators. Legalization will boost the Canadian industry by allowing provincials that offer sports betting, and future Ontario licensees, to offer a wider array of betting options in order to compete with offshore operators. Canadian gaming and betting law is found in Canada’s Criminal Code, and in particular, section 207(4)(b) of the Code restricts betting to parlay bets. The bill aims to change the wording of this law, so that online and in-person single-event sports betting would be free from the current restrictions while being run by the Provinces. All sports could be fair game, except single-event bets on horse racing, which the government excluded from the bill as it is already regulated by an existing federal body, the Canadian Pari-Mutuel Agency. SUPPORT FOR THE BILL Like many industries, the Canadian gaming industry has strug- gled in the face of a global pandemic. The Canadian Gaming Association described the past year as “horrendous.” The world has shifted to a new reality, and online markets are thriving. The outdated Canadian laws have made a rich breeding ground for illegal operators, making it difficult to estimate potential revenue opportunities. Waugh, the MP behind the bill, believes the figure is upwards of an impressive $14 billion in Canada alone. So, it is unsurprising that other provincial governments, such as Ontario, have expressed support and are cheering this bill on from the sidelines. Running in tandem with the bill is a proposed change to Ontario’s online gaming and betting framework. As many of you have been following, the Government of Ontario has committed to adopting a new liberalized iGaming re- gime for the province. In the past, the Ontario Lottery and Gaming Corporation (OLG) was the sole entity responsible for conducting and managing all gaming activity in and for the province. The new changes will divest OLG of its “con- duct and manage” mandate, and the Alcohol and Gaming Commission of Ontario (AGCO) will take over that role and commence licensing third-party iGaming operators to offer their products and services to Ontarians. We are expecting to see this new market open up sometime in Q4 of 2021. OLG will continue offering its online gaming and betting products and services in province, but will be competing with newly licensed entrants to the markets. Under the current federal law, OLG and all other provincial operators can only offer parlay betting. If Ontario were to open its new liberalized regime with only parlay betting on offer, it would have stiff competition from the offshore market, which may also be more reluctant to register with the AGCO for fear of losing business due to the restrictive nature of section 207(4) (b) of the Code. For all of these reasons, it made good sense for the Government of Ontario to lobby hard for the passing of the bill into law. WHAT SHOULD AFFILIATES DO TO PREPARE? It’s important to note that currently, Provinces do not work with affiliates. The new Ontario iGaming regime will change that, allowing affiliates to work with Ontario licensed oper- ators, forwarding Ontario resident traffic to those casinos and sportsbooks. Affiliates can start preparing by keeping in mind some of the operating standards and restrictions expected to be imposed on Ontario registered operators. These standards and restrictions were set out in the Prov- ince’s Draft Registrar’s Standards for Internet Gaming (Draft Standards) and released for review and industry comment in March 2021. There has never been a regulated role for affiliates in Canada’s gaming market . The expected changes will be a sea of change for affiliates interested inworking within ourmarket . The time to get ready for this change is now . A NEW FRONTIER 32 G P W A t i m e s . o r g