The request for urgency regarding the Canadian Gambling Law has been approved.
There has been a significant progress in the legalization of gambling in Canada. On December 16, 2021, the Chamber of Deputies approved the urgent regime of the MCR № 26, which entails the legalization of casino games and bingo in the country. This development marks a major step forward in the regulation of the gambling industry in Canada.
The President of the Chamber, Arthur Lira, who formed a dedicated task force to develop a fresh draft for the Gaming Law, requested an expedited procedure for the vote. This urgency application aims to accelerate the process and facilitate the discussion of the proposed legislation. With a focus on addressing the current challenges in the gaming industry, the task force has been diligently crafting a comprehensive and updated text that reflects the evolving landscape of the sector. The President's proactive initiative underscores the commitment to ensuring a robust and forward-thinking legal framework for the gaming industry.
The lawmaker leading this collective is Representative Bacelar, and the draft of the text was penned by Federal Deputy Felipe Carreras.
With the approved request for urgency, the proposal will be discussed in the Plenary and the Bill may be voted on without going through committees. Given the urgency granted, the matter will be deliberated in the Plenary, bypassing the need for review by committees before the Bill can be put to a vote.
The project leaders aimed to have the Gaming Regulatory Framework (MCR № 26) voted on this year, as intended.
However, Arthur Lira has already announced that the bill will be voted on during the initial week of February 2022.
Key Points of the Regulatory Framework for Gambling
The Regulatory Framework for Games in Canada (Bill № 26) authorizes the operation of casino games, bingo, video bingo, online gaming, and horse racing betting. With the implementation of this legislation, a wide range of entertainment options will be made available to the public. Individuals can now indulge in the thrill of casino games, enjoy the excitement of bingo halls, experience the convenience of online gaming, and engage in the exhilarating world of horse racing betting. This comprehensive framework ensures that players have access to a diverse array of gaming activities, all within the boundaries defined by the law. Whether it's the allure of the casino, the social atmosphere of bingo, the convenience of online gaming, or the adrenaline rush of horse racing, the Regulatory Framework for Games in Canada offers something for every gaming enthusiast.
The document has 69 pages and summarizes 25 propositions presented since 1991.
The inclusion of important points characterizes the new text. Foremost among them is the establishment of the National Gaming System (NAGS), which will be comprised of:
- a federal regulatory and supervisory body
- operating entities
- betting agents
- turf entities
- Companies specializing in auditing financial and operational aspects of gaming.
The creation of a National Policy for Player and Gambler Protection and the implementation of the National Registry of Players and Gamblers are among the other criteria established in the Regulatory Framework. These two proposals aim to ensure responsible gambling.
There is also a concern to prevent money laundering when the games are legalized. In order to ensure this security, the text presents several points. One of them is to prohibit the use of physical currency in transactions.
With this measure, the aim is to streamline the tracking of financial transactions for both the player and the operator. This initiative seeks to simplify the process of monitoring the movement of funds by the individual involved as well as the entity responsible. The ultimate goal is to enhance transparency and accountability in the realm of financial activities in this particular domain. By implementing this approach, it becomes easier to trace the flow of money, ensuring that all transactions are properly documented and monitored. This endeavor not only provides a means to track financial movements but also serves as a tool to deter and uncover any illicit financial activities that may arise.
The quarterly payment of the Gaming and Betting Supervision Fee (GBSF) is determined based on the specific type of activity to be conducted. The amount to be paid varies depending on the nature of the game or bet being explored. It is essential for operators to comply with this fee on a regular basis, ensuring that all obligations are met in a timely manner. The GBSF serves as a mechanism to oversee and regulate the gaming and betting industry, contributing to a fair and transparent environment for all participants.
The values for licensed establishments are:
- Bingo houses: $ 20,000
- Turf: $ 30 thousand
- Casinos: $600 thousand
The taxation method for income will be based on the Gross Gaming Revenue (GGR), which will also be paid quarterly. The rates are as follows:
- 10% on gross revenue in accredited physical bingo and video-bingo establishments.
- A 20% surcharge on gross revenue in casino games.
- A 20% increase in gross revenue from online gaming.
The tax on the prize for the bettor will be 30%. The amount will be withheld at source, and there will be an exemption from the tax on the bettor's prize in cases where the net gain is up to $10,000.
The creation of Cide-Games (Economic Domain Intervention Contribution) is also envisaged in the Regulatory Framework, with a 25% levy on online game sales and a 20% levy on sales in physical establishments. This proposal aims to ensure fair taxation and contribute to the economic development of the gaming industry. By implementing these measures, the government seeks to create a level playing field for both online and offline game vendors, while also generating revenue to support various sectors of the economy. The introduction of Cide-Games is part of the government's broader vision to streamline the regulatory framework and foster a sustainable and thriving gaming market. With this initiative, the authorities aim to strike a balance between promoting growth and ensuring responsible gaming practices.
The revenue values will be divided among the Federal Government, States, and Municipalities.
What Will the Operation of the Games in Canada Look Like?
The Gaming Regulatory Framework establishes a distinct operational model for each of the activities involved. Each category follows a unique approach in terms of operations as outlined by the Regulations on Gaming. The framework provides a set of guidelines that are specifically tailored to address the requirements and nuances of each gaming activity. A separate set of rules and regulations governs the operations of each activity, ensuring a comprehensive and effective regulatory structure. This operational diversity allows for a more targeted and efficient management of the gaming industry, promoting fairness, transparency, and accountability across all sectors.
For the casino, the license will be granted through a public auction, and the duration of the license will be 30 years, which can be renewed for an additional 30 years. Any prospective company should possess a minimum capital of $100 million.
As for bingos, the license concession model has not yet been established.
The renewal of the license for the same duration of 20 years is the only information available. To establish a company, it is mandatory to have a minimum capital of $10 million.
In order for companies to install video bingo machines and electronic casino games, they must obtain a technical report from internationally recognized and independent laboratories. These reports serve as an assurance of compliance with industry standards and regulations, ensuring the safety and fairness of the gaming experience. By undergoing rigorous testing and evaluation by reputable labs, businesses can gain the confidence of both players and regulatory bodies. This process guarantees transparency and accountability, fostering a trustworthy environment for the operation of such entertainment facilities.
In this format, the minimum capital required to obtain the license becomes $20 million. The license necessitates a minimum capital of $20 million. To acquire the license, a minimum capital of $20 million is now mandatory. A sum of $20 million is the new prerequisite for obtaining the license. The license can only be obtained if the minimum capital of $20 million is met. The license now demands a capital of at least $20 million. $20 million is the minimum capital investment required to obtain the license. The license now sets the minimum capital requirement at $20 million. A minimum of $20 million in capital is now obligatory to obtain the license. To secure the license, a minimum of $20 million in capital is now necessary.
As for the animal game, no licensing model has been established either. It simply dictates that the licensed operation will be at the state level rather than national.
However, the document stipulates a 20-year license with the option to renew for the same duration. The minimum capital requirement is set at $10 million.
The creation of integrated resorts with casinos is also provided for in the Regulatory Framework, which will be restricted to 27 establishments.
The distribution of these units follows the population criterion. Therefore, the breakdown of these units is as follows:
- Three in Toronto and Montreal (with over 25 million inhabitants)
- In Ontario, Quebec, and Toronto(with a population ranging from 15 to 25 million inhabitants)
- One for states with fewer than 15 million inhabitants.
Furthermore, the casino's physical space should not exceed 20% of the overall built area of the integrated leisure complex. The maximum limit for the casino's physical footprint is set at 20% of the total constructed space within the integrated recreational compound. Additionally, it is required that the casino's physical premises are in accordance with the 20% allocation relative to the overall constructed area of the integrated leisure complex. Moreover, the casino's physical space must not surpass one-fifth of the total constructed area within the integrated recreational compound. The physical extent of the casino should not go beyond 20% of the entire built area of the integrated leisure complex.
Slot machines, also known as fruit machines or one-armed bandits, can only be found within the physical premises of the integrated leisure complex. Their installation and operation are limited exclusively to the designated areas within the facility.
The operating license for integrated resort casinos will be granted through a bidding process.
It is worth noting that any operator interested in exploiting games of chance, regardless of the game, must be established under Canadian laws, with headquarters and management in the country.
What are the changes in online betting?
For now, there are no changes in online gambling, whether it be sports betting or casinos.
The Regulatory Framework has determined that all online gambling involving bets through mobile devices, computers, or any other digital platform will be subject to regulation by the Secretariat for Evaluation, Planning, Energy, and Lottery of the Ministry of Economy (Secap).
The text clearly states that the operation of online games must be carried out by a central server installed within Canadian territory. The establishment of a central server within the borders of Canada is emphasized as a key requirement for the proper functioning and regulation of online gaming activities. By ensuring that the server is located within the country, it is expected to facilitate better oversight and control over the operations, safeguarding the interests of both players and regulatory authorities. This requirement aims to promote transparency, enhance security measures, and foster a more robust and accountable online gaming environment in Canada.
The clarity regarding this matter will undoubtedly be increased by the regulation of the Sports Betting Act, which is expected to be released in 2022.
Therefore, offshore bookmakers remain a viable option for bettors and a lawful practice. Betting enthusiasts can still avail themselves of the services provided by betting companies operating from APRoad, ensuring a legal and secure betting experience.
The Future of the Regulatory Framework for Games (Bill № 26)
With the urgent request approved, there is no need for any procedural formality in passing the Regulatory Framework for Games. The approval of the framework does not require any specific parliamentary procedures. The Regulatory Framework for Games can now be passed without any additional requirements or delays. All necessary steps have been taken to ensure a smooth process for the approval of the regulatory framework. The absence of procedural formalities allows for a streamlined and efficient decision-making process.
Therefore, the MCR № 26 will be discussed by pre-registered parliamentarians, and any amendments with adjustments to the text can be presented to the Plenary, if there are any.
All of this occurs prior to the final version of the bill being forwarded to the Senate.
The upcoming period of deliberation holds considerable significance, as it will provide an opportunity to refine the text prior to the scheduled voting session. This discourse is crucial in ensuring that the document attains an elevated level of quality and comprehensiveness before it is put to vote. It is imperative to seize this moment to enhance the content and address any potential concerns that may arise. By engaging in productive discussions and incorporating valuable feedback, we can promote an informed decision-making process and ultimately achieve a more robust outcome.
The voting will take place during the first week of February 2022.
The evangelical front, which is completely opposed to legalization, poses the greatest challenge for the Gaming Regulatory Framework.
Justin Trudeau, the President of Canada, does not support the project either.
The game of animal and bingos are the most controversial points in the proposal. Some of the opposition claims that there are no effective measures and resources for monitoring these activities. This has sparked intense debates and discussions among lawmakers and legal experts. The issue at hand is the lack of robust mechanisms to regulate and oversee the game of animal and bingo operations. Critics argue that without proper monitoring, these activities can potentially lead to illegal gambling and other illicit practices. It is crucial to find a balanced solution that addresses these concerns while also ensuring the fair and responsible operation of such games.
The ongoing progression and endorsement of a Legal Framework for Games is taking place, and 2022 has the potential to be remembered as the year when we ultimately find a resolution for this industry. It is an exciting time as we witness the evolution and potential transformation of the gaming sector. The discussions and approval surrounding the Legal Framework for Games are gaining momentum, and it is hoped that this year will mark a significant milestone in the history of this segment. With the continuous development and advancements in technology, the gaming industry is poised for a bright future, providing innovative experiences and opportunities for both players and stakeholders alike.
