Canada Looks to Revamp Sports Gambling Laws

Potential Changes to Canada’s Sports Betting Law

Two Senators are proposing alterations to the current regiment of sports betting laws. Back-to-back introductions insinuate that the two are working in tandem.

The first is Bill S-268, tabled on June 20, 2023, by Alberta Senator Scott Tannas. S-268 seeks to give governments of Indigenous First Nations the right to launch retail and online sports betting sites. Tribes would be able to open sportsbooks on their respective reservations.

First Nations would also have the right to issue licenses for sportsbooks to private and commercial operators. In short, it would give indigenous bodies the same rights as Canadian provinces in regard to gambling operations, online or on land.

Bill S-268 Summary Text

“This enactment amends section 207 [sic] the Criminal Code to provide that the governing body of a First Nation has exclusive authority to conduct and manage a lottery scheme on its reserve and to license the conduct and management of a lottery scheme by other persons and entities on its reserve, if the governing body of the First Nation has provided notice to the Government of Canada and the government of any province in which the reserve is located of its intention to exercise that authority.

“This enactment also amends the Indian Act to grant the council of the band authority to make by-laws for the purposes of regulating the operation, conduct and management of lottery schemes permitted on the band’s reserve under section 207 of the Criminal Code.”

Next is Bill S-269, introduced on the same day by Ontario Senator Marty Deacon. Bill S-269 intends to strengthen player protections by further restricting sports betting advertisements. It tasks Canada’s Heritage Minister with the development of a solid framework for sports betting advertisements.

The framework would include greater restrictions on when and where ads can appear. It would also limit the number of ads, as well as put a cap on, if not ban entirely, the use of athletes and celebrities in marketing campaigns. 

Bill S-289 Summary Text

“This enactment provides for the development of a national framework to regulate advertising for sports betting in Canada and to set national standards for prevention of risk for persons negatively impacted. It also provides for the Canadian Radio-television and Telecommunications Commission to review its regulations and policies to assess their adequacy and effectiveness in reducing the incidence of harms resulting from the proliferation of advertising of sports betting.”

The Need for Greater Sportsbook Ad Restrictions

Senator Deacon is particularly concerned about the sheer volume of sports betting ads taking over the media today. “The reality is you cannot sit down in this country to enjoy a sport without being exposed to a barrage of such advertising,” said Deacon.

The Ontario Senator goes on to describe the barrage of marketing as not just overbearing, but potentially harmful to the public. They are “much more than just annoying,” says Deacon. “They can lead to addictions and other harms, through gambling problems.”

Advertisers Gone Wild in Ontario

The situation isn’t exactly out of control across Canada, but Ontario is a different matter. Ontario is the only province to launch an openly competitive iGaming market. Only 15 months into existence, the province is already hosting 75 Ontario gambling sites; a number that continues to grow with each passing month. Among them are 30+ sports betting sites, all competing for advertising space.

Some residents are fed up with being bombarded by betting ads during televised sporting events. Lawmakers are taking up their argument, proposing various amendments to minimize ads and their potential harm.

The Alcohol and Gaming Commission of Ontario (AGCO) was the first to propose a change. It would like to see a ban on the use of athletes in gambling ads, with strict limitations on other celebrities as well.

Why Not Do Away with iGaming Ads Altogether?

Another group of lawmakers from Queen’s Park are taking a blanket-ban approach to iGaming ads. They’ve introduced Bill 126, the ‘Ban iGaming Advertising Act’, which would – as the name implies – enforce an outright ban against online gambling advertisements. If enacted, any violation of the ban would incur a penalty ranging anywhere from $25,000 to $1,000,000.

Lisa Gretzky, of the Queen’s Park NDP, is a leading spokesperson for the bill. “The provincial government and the gaming companies have a responsibility to ensure people vulnerable to addiction, including our youth, are not inundated by ads,” said Gretzky.

The Queen’s Park politicians are an NDP minority, making their push for a blanket ban more difficult. It would require support from the other side of the fence. While it’s certainly possible, it’s unlikely.

Only time will tell if any amendment to Canada’s sports betting law will reach ascension. We’ll keep an eye on the situation as these bills work their way through the government corridors.