Will Racetracks Push Canada to Regulate Online Poker or Wipe It Out?

Following Canadian Minister of Justice Rob Nicholson's suggestion earlier this week to consider 'other measures' against 400 or more online poker and online gambling sites licensed by the Kahnawake first nation enclave south of Montreal (namely to introduce a UIGEA-like bill to block financial transactions), Canadian racetrack owners are now making their influential opinions known.

What they are telling the Ottawa government is that they either want to see no more online gambling in Canada, or a change in legislation to allow them greater access to the billion-dollar industry.

They voice pent up frustration to change the current situation where they feel that Kahnawake licensees have an unfair advantage by paying little overhead and no taxes to Canada, according to an article on Online-Casinos.com

Track owners say that while they add to local employment and pay taxes, they labor under many restrictions. Most important, they are allowed to take online bets only in their local areas, while offshore operators can take all sorts of sporting bets from anywhere without supporting the local industry.

"It's having a severe impact on our business," said Jane Holmes, vice-president of corporate affairs for Woodbine Entertainment Group, whose holdings include Toronto's Woodbine Racetrack. She estimates it has lost about $200 million to other sites.

Liberal MP Roy Cullen, whose Etobicoke North riding includes Toronto's Woodbine Racetrack, said he plans to follow the Minister of Justice's lead by introducing a private members' bill that would require financial institutions and credit card companies to block Internet betting transactions.

KAHNAWAKE IS OK WITH FREE ENTERPRISE

Joe Delaronde, spokesperson for the Mohawk Council of Kahnawake, said that the council is indifferent to changes in legislation that would allow horse-racing tracks to expand into all sports betting online. "If the Canadian government changes their laws and allows that, it's free enterprise, it's a competitive market."

He doubts the federal government would try to shut down the Kahnawake licensee sites. "It would be very unwise of the government. This operation is taking place in our jurisdiction."

GAMING EXPERT THINKS CANADA WILL REGULATE, NOT BAN, ONLINE GAMBLING

Michael Lipton, a recognised gaming law expert and the senior partner at a Toronto law firm was asked by Casino City for his insight on how Canada might move forward.

His felt if history has anything to do with it, the industry could expect to see regulated versus prohibited Internet gambling in Canada, nor was there was any major public demand for an online gambling ban legislation in Canada.

"From all of the information that I've seen, I don't see any hue and cry from the public about banning Internet gaming," he said.

"I think the public would like to regulate. And the Kahnawake would be absolutely delighted. It would also give the gaming software industry that is so big here a huge boost.

"There are 85 countries worldwide that have regulated online gaming. Maybe it's Canada's time to do the same" Lipton added.

Read Related Article: