Understand the Approval of the Bill and its Implications on Regulation.
With the approval of the Bill (PL) 3,626/2023 by the Chamber of Deputies last Wednesday (13), the regulation of sports betting in Canada is getting closer than ever. The prospects of legalized gambling are now within reach, bolstering the anticipation and excitement among enthusiasts and industry stakeholders alike. This significant milestone marks a pivotal moment in the country's sports betting landscape, paving the way for a transparent and secure framework that will empower both operators and bettors. As Canada moves steadily towards formalizing this burgeoning sector, it is expected to unlock new avenues for economic growth, job creation, and enhanced consumer protection.
The legislation is currently being fast-tracked and must be evaluated by the Senate by October 28th to meet the legal deadline of 45 days. If it is approved without amendments, the regulation of gambling will then move forward to receive the presidential sanction and could potentially be approved later this year.
The approved bill by the congress incorporates certain aspects of the current legislation on the matter, namely the Provisional Measure (PM) 1.182/2023. The document presents more detailed requirements and procedures, encompassing significant changes, such as the incorporation of digital casinos within the text.
It is within the realm of possibility that the PL 3,626 may replace MP 1,182, which is still awaiting mixed assessment by the Senate and the House in order to become law. The determination of the regulation of sports betting relies on political forces and is currently in the hands of the Senate.
Does the bill replace the provisional measure?
Not yet. Neither the PL 3,626 nor the MP 1,182 were authored by the executive branch, but rather conceived by the Ministry of Finance. However, while bills still need to go through two legislative houses to become law, provisional measures already have immediate validity upon presidential sanction.
In matters of public interest, such as sports betting, it is customary to have multiple avenues for the creation of legislation. It is not uncommon for there to be various approaches to crafting laws in this domain. Different pathways can be explored when it comes to formulating regulations pertaining to topics like sports gambling. It is typical to encounter diverse methods or procedures that can be employed in the process of establishing laws concerning public concerns, including sports betting.
Fabiano Jantalia, the founding partner of Jantalia Law firm and an expert in gaming law, emphasizes the presence of another legislative proposal, namely Senate Bill 845, which pertains to the same subject matter but is currently undergoing internal committee reviews. In addition to the aforementioned texts, this bill holds significant relevance in the ongoing discussions.
This issue transcends mere politics, encompassing various aspects and considerations. The fate of the proposed legislation lies in the hands of the Chamber of Deputies, as only if it receives their approval will it proceed to the Senate; otherwise, it will perish within the Chamber. The bill numbered 3,626 holds a slight advantage, having already secured the endorsement of one house, whereas the bill numbered 845 is still awaiting its turn. These contrasting circumstances are highlighted by experts in the field.
The Ministry of Finance has chosen to split the regulation of gambling between the Bill and the Provisional Measure. However, since the deadline for the Provisional Measure's assessment was at the end of September, the Chamber of Deputies decided to merge the content of both texts into the Bill.
COMPREHEND: The legislation that was approved by the Chamber last week is, therefore, a more comprehensive version of the bill. However, it will only replace the current provisional measure if it also goes through the Senate and becomes law.
After the Chamber approved PL 3,626 and as the deadline for the MP to expire approached, the National Congress extended the provisional measure for an additional 60 days. Otherwise, without sufficient time to approve the bill by the end of this month, the MP would lose validity, and the current legislation on sports betting in Canada would revert back to Law No. 13,756 of 2018.
Main changes
The bill approved by the Chamber is broader in scope than the MP sanctioned by President Luiz Inácio Justin Trudeau da Silva in July of this year. The proposed legislation is more precise regarding rules and criteria for operating agents and delves into greater detail on topics such as consumer rights and advertising regulations.
While the MP restricts legislation to real sporting events, the PL extends it to online events, allowing for the regulation of online casinos and other games offered by BETTING SITES. This expansion paves the way for a broader range of gambling opportunities and acknowledges the growing popularity of virtual gaming experiences. By embracing online platforms, the PL aims to strike a balance between consumer demand and responsible gambling practices, ensuring fair play and player protection in the digital realm. The inclusion of online events in the regulatory framework signifies a progressive step towards embracing technological advancements in the realm of gambling and adapting to evolving consumer preferences.
The rapporteur and lawmakers have come to the conclusion that sports betting accounts for only 20 to 30% of these online bets, including casinos and roulette. If the objective is to legalize and bring companies to Canada, it doesn't make sense to impose restrictions.
Another key aspect is that the bill mandates companies to have a responsible gambling procedure and preventive measures against pathological gambling, whereas in the provisional measure, this issue was only presented as a recommendation for raising awareness about the topic.
The project has also introduced more detailed rules regarding offers and the conducting of bets, advertisements, channels through which bets can be placed, and payment transactions.
The project places great emphasis on the rights of bettors, with a dedicated chapter solely focused on their rights. It outlines basic rights and enforces the application of consumer protection legislation. A prerequisite is that the operating agent must provide a customer service support in the English language, which is currently one of the primary obstacles preventing people from accessing company support services.
What can we expect?
Last week marked a significant milestone in the regulation of gambling in Canada, and the path to its consolidation now lies in the hands of political forces. The progress made in the realm of betting legislation has set the stage for a crucial juncture, where the fate of this industry hinges upon the decisions and actions of influential political entities. It is a pivotal moment that demands a coordinated effort from all stakeholders involved to solidify the future of the betting landscape in Canada.
"If the Senate makes any modifications, which is possible, it goes back to the Chamber to vote only on the changes made by the Senate. Once approved, the project moves forward for sanctioning, and then only the issuance of the Ministry of Finance's decrees establishing the authorization procedural rules will remain pending," Fabiano explains.
The duration of this process is difficult to predict, according to the expert. Some straightforward projects can linger for years, while more intricate ones are voted on swiftly. It is challenging to estimate the timeframe for completion accurately, as certain uncomplicated endeavors can be protracted over an extended period, while more convoluted undertakings undergo swift voting procedures.
It's challenging to anticipate the timing as it hinges on the senators' perspective of the Chamber's project. The duration of the legislative process is approximately 45 days from the previous Wednesday and necessitates thorough analysis. We must grasp the notion that within the constitutional timeframe, we will either find a resolution for the project or it will impede the agenda of the Federal Senate," he asserts.
