Canada Ready for Gambling Reform

Currently, online gambling in Canada is in the legal grey-zone, largely affected by its neighbor, the United States. Be it poker, state-run casino operations or another form of gambling to take the lead, it is quite clear that one day this reality will change and gaming will be emraced, legal and regulated.

When the Unlawful Internet Gambling Enforcement Act (UIGEA) will be removed, Canada too will open up and there will be a large market to serve. Some companies are not wasting their time in preparing for this day.

Explore and Consider Online Gambling
The Atlantic Lottery Corporation (ALC) is one such company. It has solicited video game makers to develop gambling games for it. Its formal request was phrased with the words: “explore and consider a suite of Internet-based lottery products (including) instant win products, casual games as well as other popular games played by consumers on this online medium.”

Is Canada preparing for the day online gambling will be legal? 

Of course, there are voices that call against such a reform, experts worried about an increase in gambling addictions.

ALC spokeswoman Paula Dyke tries to calm this voices, saying the lotto corporation isn’t necessarily expanding its offerings just yet. Rather, it is refreshing the products that exist already. “At this point,” Dyke said, “we’re looking to see what’s out there.”

A History of Indecision
The Atlantic provinces in Canada already see $100 million annual revenues from ALC’s products. It is the provinces that will decide the fate of gambling.

The federal law in Canada outlaws setting up online gaming sites. This does not change the fact that Canadian companies are big players in the international gambling market (e.g. Cryptologic).

Kahnawake, a Native reserve in Quebec, has recently faced some legal chamllenges with regard to the operations it hosts in its territory, under its licensing board.

The law, however, does not address gamblers. It only addresses whoever is found in a "common betting house." Do virtual casinos qualify?

Canada even has a history of trying to legalize online gambling. As long ago as in 1997, federal MP David Mills promoted a bill to make it so. His argument was well ahead of its time, and is used now: the underground gaming economy should be regulated. There is even profit for government if it will be done.

Either unaware of the direction the market was going (a 2001 survey suggested one in 20 Ontarians had tried online gambling at least once), or afraid to handle the hot potato, Prime Minister Jean Chretien did not support the bill, and it failed.

So, What Will Be?
Of course we have no knowledge of what the answer to this question is. If we had, we would bet on it, not tell you…

But the only realistic guess is that the ALC and whoever else is preparing for the day that online gambling be legal – anywhere around the world, not only in Canada – is doing the right thing.