We hoped that the turn of the calendar would put COVID-19 in the rear-view mirror, yet the Canadian gaming industry still faces closures and reduced operating environments. There are, however, several reasons for optimism in 2021, and sports betting is a big one.

The Canadian Gaming Association’s (CGA) advocacy to amend Canada’s Criminal Code and legalize single-event sports betting has been a 10-year odyssey. While Canada has had legal sports wagering for decades, Canadians can only place wagers through a parlay bet.

Canadians love sports, and the nation’s affinity for sports betting is substantiated by Canadians wagering approximately $10 billion annually through illegal bookmaking operations and more than $4 billion through offshore wagering sites. Currently, only $500 million is wagered through legal provincial sports lottery products (parlay wagers), which means most people are betting through illegal means.

The CGA is hopeful that its ongoing pursuit of a legislative amendment to permit single-event sports wagering will be realized this year. Its efforts to build a broad coalition of support with labour, business, and sport and community organizations has kept the issue on the legislative agenda and earned Bill C-218 all-party support in the House of Commons.

The Private Member’s Bill was first introduced last year by Kevin Waugh, MP for Saskatoon-Greenwood.  On February 17, 2021, by an overwhelming majority of 303-15, Bill C-218 was sent to the Standing Committee for Human Rights and Justice for further study. We expect the legislative hearings to wrap up in March before a final vote in the House. The next step will be to repeat the process in the Senate, which we hope will begin in April.

Across the country, provinces are working on regulatory standards in preparation for the legalization of single-event sports betting. The important point to remember is that the Criminal Code amendment only legalizes single-event sports betting. After that, it will be up to each province to decide how, when, and if it will offer the products and services.

The common sentiment by all stakeholders is that this legislation is long overdue. U.S. sports betting is flourishing, and Canada’s gaming industry and sports leagues recognize its benefits. From a consumer protection point, it’s impossible to ensure that responsible gaming tools are available when an activity is taking place in the shadows. Only by regulating single-event sports betting can we be sure that customers are protected and that benefits flow to legal operators and the communities in which they're generated.

In terms of estimating the size of Canada’s single-events sports betting market, a best guess is what’s available. Deloitte published a report in January 2021 that estimates that the annual amount of legal wagers five years post-legalization will be close to C$30 billion, dependent on the provinces’ decisions to offer single-event sports betting.

Ahead of the anticipated legalization of sports betting, work has begun to address specific issues around the implementation of sport and event wagering in Canada such as match fixing and sharing data and information across provinces. The CGA’s Regulatory Innovation Committee—established in 2019 as platform for industry and regulators to examine forward-looking regulatory innovation—is currently developing national sport and event wagering standards.

Optimism is the word of the year. With Bill C-218 moving through the legislative process in Ottawa and the Ontario government’s plan to establish a provincial regulatory regime for iGaming underway, the Canadian gaming industry has much to look forward to in 2021.

Paul Burns
President & CEO
Canadian Gaming Association