Article published on 7 March 2012

Legal Opinion Divided on Canadian Gambling Laws

Article Ponders Canadian Online Gambling Legality
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The Vancouver Sun ran an interesting article this week questioning the reasons why Canadian authorities aren't doing more to pursue offshore online gambling operators like their counterparts across the border.

The article begins: "The ongoing crackdown by American authorities against foreign operators of online gambling sites begs the question: why haven't Canadian authorities done the same?"

The general message of the article is that the authorities aren't sure themselves about the laws governing offshore online gambling in Canada, and that legal opinion in divided about whether these sites are even breaking the law.

Despite the fact that only provincial governments are allowed to run online gambling sites in Canada, the article says that there are at least 2,000 gambling sites, located out of the country's borders, where Canadians regularly play, "pouring huge amounts of money into them."

Gambling experts say that Canadians spend as much as $4 billion a year at offshore online gambling sites.

A Queen's University professor, Stanley Sadinsky, is quoted as saying in the article: "For police authorities, it's not their top priority. They have much bigger fish to fry."

Canadian Acceptance of Online Gambling

According to experts, the Canadian government hasn't pursued legal action against online gambling operators offshore because there is no public demand to do so.

The Vice President of the Canadian Gaming Association, Paul Burns said: "There hasn't been a huge public outcry.  There's a high level of acceptance of offshore operators in Canada."

The article provides a stark comparison between Canadian authorities' relatively relaxed attitude to online gambling and the reaction of the United States, showing the DOJ's clampdown on sites as Poker Stars, Full Tilt Poker and Absolute Poker last year, and the more recent prosecution of Canadian billionaire, Calvin Ayre, as an example.

The article sums up that a lack of clarity in Canada's gambling laws may be the reason why local authorities are reluctant to start chasing after gamblers.

"There's frustration within the industry over this legal grey area," the article says is Burns opinion on Canadian gambling laws. "Either you enforce the law or create a framework to regulate these offshore sites. Canada has so far chosen to do neither."

The Canadian Gaming Association would prefer that offshore sites be legalized and regulated which would, according to the article, "provide customers with greater peace of mind and ensure transparency of rules and secure environments in which to play."

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