Reports from The Star in Toronto indicate that the Ontario provincial
government is about to crack down on advertising for Internet gambling
- either direct or indirect.
The newspaper reports that online gambling is illegal in Canada with
certain exceptions, and that the practice of advertising for the pastime
will shortly be curtailed, if local politicians have their way.
The provincial government plans to move to close the loopholes in
current legislation with a blanket ban on advertising of Internet
gambling, direct or indirect. The ban will be part of an omnibus consumer
protection bill to be introduced this week by Government Services
Minister Gerry Phillips.
Aside from the claim by politicians that Internet gambling is highly
addictive and too accessible, the province may have another reason
to curb Internet gambling: It is cutting deeply into the government's
share of the take from legal gambling at the casinos, lotteries and
race tracks in the province.
The Star says it is hard to know exactly how much money is being drained
away from legal gambling by the illegal sites on the Internet; estimates
range up to $500 million a year in Ontario alone. But this much is
known: Revenues for the government-owned Ontario Lotteries and Gaming
Corp. (operator of the province's casinos) were down $335 million
over the past three years and are forecast to drop another $210 million
this year.
Border-crossing problems, the high value of the Canadian dollar, and
growing U.S. competition share the blame for this. But there is no
doubt that Internet gambling is a factor in the steady decline.
Some argue that Canada should simply follow the lead of other jurisdictions
(Britain, for example) and legalize Internet gambling, with governments
either operating the sites directly or regulating and taxing them.
But there seems to be little appetite for this option in official
Canadian circles.
The Ontario government, for one, has categorically ruled out involvement
in the Internet gambling business.
The problem is that, while illegal, Internet gambling is hard to police,
as the sites are based either offshore or, within Canada, at the Mohawk
reserve of Kahnawake, outside Montreal.
The United States Congress last month found a way to get at the offshore
sites by passing a bill that makes it illegal for American banks to
allow their credit cards to be used for online gambling.
Such action is beyond the jurisdiction of a province, however, as
Ottawa is responsible for both the national Criminal Code and banking.
So Ontario is focusing on advertising curbs for now.
But Phillips has written a letter to federal Justice Minister Vic
Toews to express his concerns about Internet gambling and appeal to
Ottawa to join the fight.
The letter, dated Sept. 28, has a plaintive tone to it as Phillips
struggles to capture Toews's attention.
"The government of Ontario considers illegal Internet gaming
to be a serious issue," writes Phillips. "It
is clear, however, that illegal Internet gaming represents complex
regulatory challenges requiring a coordinated effort by provinces
and the federal government on several fronts ... I would ask for your
support and continued engagement on this issue."
Toews has yet to respond to the letter.
Somewhat surprisingly - given that the federal Conservative government
often takes its cues from Washington - a spokesperson for Toews explains
that Internet gambling is not a "priority" for the justice
minister.
So, the websites will continue to operate with impunity in Canada,
but the advertising of them may soon be a little more difficult, at
least in Ontario.
A footnote: Phillips's omnibus bill will also contain sections dealing
with real estate fraud, outlawing termination dates on gift certificates,
and modernizing the provincial archives.