Online gambling targeted (Canada)

Online gaming has existed as a form of business and entertainment since the 1990s. Online gaming operators offer different forms of gambling and betting that generated nearly $12 billion in revenue last year. Though the online gaming industry is clearly popular, it has lead to debates and controversies. The legality of online gaming varies around the world. Many jurisdictions have legalized and regulated the industry. However, in Canada, there are several legal issues surrounding online gaming ventures. For example, any gaming operation, including an online operation not licensed by a recognized authority is illegal. Ontario is stepping up to regulate and enforce the industry more effectively through proposed Bill 152. The proposed bill would prevent the advertising of illegal online gaming sites in Ontario. The Government Services minister believes that even though online gaming is illegal, the enforcement of existing regulations has not been a priority. The new bill was introduced to step up enforcement. Currently, the regulation of online gaming does not occur at the provincial level in Canada. However, the effect of the proposed legislation would curb the information source of many of the websites by banning advertisements that promote online gambling sites. This falls in the realm of Ontario’s enforcement jurisdiction. The potential online gaming advertisement prohibition is limited in scope by focusing on advertisement. Section 13.1 (1) of the proposed code provides as follows: “No person shall advertise an Internet site that operates an Internet gaming business contrary to the Criminal Code (Canada).” In addition, the next clause, that pertains to sponsorships, has the potential to indirectly affect online gaming advertising: “No person shall enter into a sponsorship relationship with an Internet gaming business that is operated contrary to the Criminal Code (Canada).” If the proposed bill passes, online gaming operators who have links to Canada will have to consider several variables and be aware of how the venture is structured in an effort to abide by Ontario’s new law. Government run lotteries, both charity and commercial, apparently are showing a decrease in revenues. As it stands now, this bill is only a proposal that must still be approved by the provincial legislature. If the bill is approved, it would likely come into force early next year. If this bill is passed, the ban would move Canada away from the British approach to regulating online gambling, and toward the U.S. approach. Britain is of the view that online gaming is legal as long as the Internet servers are located in a jurisdiction that permits it, while the U.S. seeks to ban online gaming altogether.