Last week, half a dozen federal and provincial officials met behind
closed doors at Queen's Park with representatives of casinos and
racetracks.
The topic: the startling rise in illegal Internet gambling and what to do about it.
Starting from scratch just a few years ago, Ontarians are now spending
an estimated $300 million a year playing poker or betting on races from
the comfort of their own homes via the Internet.
"It's one of those issues that kind of creeps up on you a bit," says
Gerry Phillips, minister of government services, who is responsible for
the oversight of gambling in the province.
It was Phillips who instigated last week's federal-provincial-industry
meeting at Queen's Park with a March 6 letter to federal Justice
Minister Vic Toews raising "some serious concerns" about the growth in
Internet gambling.
Internet gambling is strictly illegal in Canada. But because the
gambling web sites are based offshore or, in some cases, on an Indian
reserve in Quebec, it is tough for law enforcement authorities to get
at them.
Meanwhile, Ontario's casinos and racetracks are feeling the effects of Internet gambling on their bottom lines.
Revenues from the Ontario Lottery and Gaming Commission, which runs the
province's casinos, have declined by $335 million over the past three
years and are forecast to drop another $210 million this year.
While border problems and competition from new U.S. casinos are usually
blamed for this, Internet gambling is also a major factor in the
decline.
As for the racetracks, Woodbine Entertainment Group estimates Internet
betting on horse races is draining $100 million a year from its
coffers.
Internet gambling is, of course, more than just a revenue concern.
Because the Internet is accessible to minors, it is seen as fostering
underage gambling. And because people can gamble on the Internet
anonymously around the clock, it can be viciously addictive.
What should be done about it?
Sources say that three options were discussed at last week's meeting at Queen's Park:
Stop the advertising of gambling web sites.
It is astonishing that the province can prohibit all advertising or
even display of cigarettes, a legal product, whereas ads for Internet
gambling air with apparent impunity.
It is done cleverly, of course, with ads that invite people to visit
"play for fun" or instructional sites that are perfectly legal. But
there are links from these sites to the real thing.
Liberal MPP Jeff Leal (Peterborough) has introduced a private member's
bill that would close this loophole by banning ads for websites that
are linked to gambling not licensed by the province or the Government
of Canada.
The bill received second reading (approval in principle) by a voice
vote in the Legislature. But that is as far as private members' bills
usually get.
However, the government could decide to adopt Leal's bill as its own and push it through the Legislature.
Go after the website operators with criminal charges.
Other countries ? notably the United States ? are pursuing this option with some success.
In Canada, it is not clear whether the gambling sections in the
Criminal Code are strong enough to support charges or whether new
language is needed. Last week's meeting concluded that this question
requires further study before the option can be pursued here.
Set up a government-licensed website to keep the revenues in Ontario.
This is the "if-you-can't-beat-them-join-them" solution, and it is the option the British government has chosen.
However, given the accessibility of the Internet beyond the province's
borders, Ontario would encounter stiff opposition from the rest of
Canada and the U.S. if it pursued this option.
That is not the only problem with this option. With concerns about
Internet gambling preying on minors and being addictive, how could the
government sanction such a web site?
In a policy statement last year, the Liberal government said No to any
further expansion of gambling, including on the Internet. That remains
government policy today, says Phillips.
That would seem to leave options one and two as ways to fight the Internet gambling problem.
The participants in last week's meeting will meet again next month, and
this time representatives of the OPP and the RCMP are to join them.
Government action could follow soon afterward.
Toronto Star
