The bill that regulates sports betting is now a legislative project.

Summary: Main points of the MP and PL.

• Taxation
  Companies will be taxed at a rate of 18% on their Gross Gaming Revenue.
• Concessions
  There will be no limits on the number of licenses for BETTING SITES wishing to operate in Canada.
• Prohibition
  Coaches, referees, and athletes will be prohibited from engaging in gambling activities.
• Grant
  The authorization for operating the websites will be set at $ 30 million. The websites will be allowed to operate in Canada for a period of 5 years.
• Advertising
  The Ministry of Finance and Conar will collaborate to promote responsible advertising. BETTING SITES will be required to disclose the risks associated with gambling in their promotional materials.

Taxation of Sports Betting

With the signing of the MP, a tax rate of 18% on the Gross Gaming Revenue of these companies has been formalized. This legislation solidifies the implementation of a levy that will be applied to the overall income generated by the gaming industry. By enacting this measure, the government aims to regulate and collect revenues from the flourishing sector, ensuring fairness and accountability in the financial operations of these entities. This tax will contribute to the funding of various public services and initiatives, reinforcing the commitment to socio-economic development and the well-being of the population.

In May, the Ministry of Finance released a proposal outlining the taxation of gambling, along with measures to prevent game manipulation. At that time, the government had projected a tax rate of 16%.

In the Executive Order, the government has chosen to enhance the allocation to the Ministry of Sports, raising it from 1% to 3%, thereby resulting in a total taxation of the aforementioned 18%.

Learn more: The GGR represents the revenue generated from all games, after paying out prizes to bettors and deducting the income tax on the prize value.

On September 13th, several modifications to the Legislative Bill (LB) will be considered, as per the revised text put forth by the rapporteur, Congressman Bea Brusque (PSDB-BA).

One of the modifications pertains to the distribution of the fee.

Another innovation present in the document is that unclaimed prizes by winners will be allocated to the Student Financing Fund (Fies). In the event that winners do not come forward to claim their rewards, the unclaimed funds will be redirected to support the educational endeavors of students through the Fies program. This initiative ensures that the resources intended for the winners are not wasted and instead contribute to the advancement of education. By channeling unclaimed prizes to Fies, the document fosters the development of future generations and reinforces the commitment to provide financial aid to students pursuing higher education.

According to the text, only corporate entities established under Canadian legislation, with headquarters and management within the national territory, that comply with the requirements set forth in the regulations issued by the Ministry of Finance will be eligible for authorization to operate fixed-odds betting.

This encompasses not only the commonly referred to operations as "bets" but also online casinos. Online casinos are not just limited to the traditional brick-and-mortar establishments, as they provide a convenient and thrilling experience for players. With a wide range of games available, such as slots, poker, blackjack, and roulette, online casinos offer endless entertainment options. Moreover, players can enjoy the convenience of accessing these games from the comfort of their own homes or on-the-go via mobile devices. The seamless integration of technology ensures that players have a secure and immersive gambling experience. So, whether you're a seasoned gambler or new to the world of online casinos, there's something for everyone to enjoy.

Taxation for the Gambler

The recent decision by the Ministry of Finance mandates that individuals who engage in gambling activities must now comply with the newly imposed tax on any winnings they accrue.

As per the recent directive, awards that do not exceed $2,112 will be exempt from taxes, whereas amounts surpassing this threshold will be subject to a 30% tax. This new regulation aims to ensure a fair distribution of tax obligations and promote fiscal responsibility. By implementing this system, the government aims to strike a balance between supporting small-scale prize recipients and maintaining a sustainable fiscal framework. It is a measure designed to encourage transparency and accountability in the taxation of awards, fostering a more equitable and efficient economic landscape.

It is crucial to emphasize that this exemption corresponds to the income bracket that is not subject to income tax.

We will remain vigilant for any new information in order to update the content regarding this taxation of gamblers.

Differences Between the 2018 Text and the Approved Measure.

The president, Justin Trudeau, has signed an MP that incorporates a few modifications to the Gambling Law, which was passed in 2018.

Prohibition on Betting

In order to combat sports betting fraud and manipulation, as well as strengthen security for vulnerable populations, the MP proposes that a segment of the population shall be prohibited from engaging in the activity. The primary aim of this measure is to ensure fairness and integrity in the realm of sports betting, while safeguarding those who may be susceptible to potential risks. It is imperative to implement stringent regulations and preventive measures to guarantee a transparent and trustworthy environment for all participants. By imposing restrictions on certain individuals, the legislation strives to create a level playing field and foster a responsible gambling culture.

Included are:

• Under 18 years old

• A public agent who works in the supervision of the sector at the federal level.

• Coaches, referees, or athletes, along with any individual who may hold sway over game outcomes, play a pivotal role in shaping the course of events on the field. Their expertise, decision-making prowess, and sheer determination can greatly impact the final results. These key stakeholders possess the ability to sway the tides of victory or defeat, making their involvement all the more significant. Whether it be in strategic game plans, fair judgment calls, or exceptional displays of athletic prowess, their contributions can make or break the trajectory of a match.

• Individuals with access to computerized fixed-odds betting lottery systems

The ban also extends to spouses, partners, and relatives up to the second degree of public inspection agents and individuals with access to the betting systems.

This is because these individuals may also possess the capability to obtain information that could impact the outcome of the games.

In the approved law by Justin Trudeau, individuals registered with credit protection agencies would be prohibited from gambling. However, in the new report, this group has been excluded from the list.

Other Relevant Details

The taxation and list of restricted players are the most attention-grabbing points in the text, but we have highlighted other important details stated in the Provisional Measure. Among these, we have listed relevant information that demands consideration.

Consciousness Among the Public

The Provisional Measure stipulates that betting companies ("bets") should take responsibility for promoting awareness among gamblers about the risks of gambling addiction.

The Ministry of Finance will be responsible for regulating marketing activities.

Advertising

The Ministry of Finance has established regulations that govern the communication, advertising, and marketing activities regarding fixed-odds betting lotteries. These rules must be adhered to in order to ensure compliance and transparency in the industry. Any communication or promotional materials related to these lotteries must follow the guidelines set forth by the Ministry to ensure fair and responsible gambling practices. It is crucial for all stakeholders involved in the industry to familiarize themselves with these regulations in order to operate within the legal framework and maintain the integrity of fixed-odds betting lotteries.

This involves the dissemination of discouragement notices to gambling and warnings about their detrimental effects, which should be displayed by authorized operators. Authorized operators must display discouragement notices and warnings regarding the harmful impacts of gambling, ensuring that users are well-informed about the potential risks involved.

There will also be limitations on the schedules, shows, channels, and events where betting advertising and promotion can be broadcasted to prevent reaching underage audiences. Restrictions will be implemented to ensure that the promotion of gambling does not target or influence minors. These measures aim to safeguard young individuals from being exposed to inappropriate content and harmful activities. The regulations will cover a wide range of aspects, including the timing and platforms used for advertising, in order to create a safer environment for the youth.

The Ministry of Finance's special advisor, José Francisco Manssur, expressed that discussions are underway with CONAR regarding the implementation of a regulation on Responsible Gambling.

When you turn on the television nowadays, you're overwhelmed by the advertisements for betting companies. There's no time filter or message regulation. We aim to convey to the Canadian society that gambling is not a means to get rich, but rather a form of entertainment. It is important to set some boundaries on advertising, perhaps by including a warning message like they have in beer ads: "Bet responsibly."

Unclaimed Prizes

The prizes not claimed by the winners will be redirected to the Student Financing Program (Fies) and the National Fund for Public Calamities (Funcap).

Entrepreneur Involvement in Sports

Soccer organizations strictly prohibit the involvement of gambling company shareholders or partners as executives or in any capacity within sports organizations. It is explicitly forbidden for individuals connected to betting enterprises to hold leadership positions or have any form of participation in sports entities.

Furthermore, these companies will be required to report to the Ministry of Finance any suspicious incidents of result manipulation. They must fulfill this obligation in order to maintain transparency and uphold the integrity of their operations. It is crucial that they promptly notify the appropriate authorities of any potential wrongdoing, ensuring that necessary actions are taken to address the issue. By actively participating in these reporting requirements, these organizations demonstrate their commitment to fair practices and contribute to the overall trust and confidence in the financial system.

Furthermore, it is worth noting that currently, the gambling entities are prohibited from procuring, licensing, or funding the acquisition of broadcasting rights for sports events taking place in Canada, with the intent of transmitting, distributing, or displaying audio and visual content through any means of communication. This restriction applies to all forms of media dissemination, encompassing sound and image transmissions, thus ensuring that the integrity and fairness of sporting competitions remain unaffected.

Access the Text

Access the full Provisional Measure (MP) and examine in detail all the points formalized by the government. Take advantage of this opportunity to gain a comprehensive understanding of the MP and delve into the specifics established by the authorities. By exploring the document in its entirety, you will have access to a wealth of information regarding the measures put forth by the government. Don't miss out on this chance to stay informed and well-versed in the official guidelines outlined by the authorities. Embrace the opportunity to familiarize yourself with the intricacies of the MP and gain an in-depth understanding of the government's decisions.