Moved second reading of Bill C-218, An Act to amend the Criminal Code (sports betting).

He said: Honourable senators, I rise today to speak to Bill C-218, the Safe and Regulated Sports Betting Act, and to serve as the Senate sponsor.

I would like to thank Kevin Waugh, Member of Parliament for Saskatoon—Grasswood, for his leadership with this bill, which seeks to regulate sports betting in Canada, strengthen consumer protections to ensure the safety of those participating and bring revenues and tax dollars inside our borders to invest back into our communities.

Sports betting has been legal in Canada for over three decades; in fact, since 1985. Outside of horse racing, however, there is only one form of legal sports betting in Canada. It’s called parlay bets. This type of betting requires an individual to bet on two or more games, and in order to receive a payout, each individual bet has to be correct. For example, if a bettor were to bet on the outcomes of an NHL game, an NFL game and an NBA game, these would be bundled together in one parlay and the bettor would only receive a payout if the outcomes of all three games are successfully wagered. The system of legal parlay betting generates approximately $500 million of annual betting expenditures in Canada.

Single-event sports betting is currently prohibited in Canada. This means that if a Canadian wanted to bet $10 on their favourite hockey team or any other sports team, that would be illegal. For Canadians who legally gamble, by law they must participate in more gambling than they may wish in being forced to bet on multiple games, where the odds are stacked against them, as it is more difficult to ever see a payout when betting on multiple games. Yet that is what Canadian law, as it stands now, mandates.

Given that single-event sports betting is not legal in Canada, it may be surprising to hear that Canadians are spending about $14 billion annually on this very product, which is 28 times what they’re spending on legal, multi-match bets. This enormous industry of illegal activity has been made possible through both web-based offshore gambling sites and organized crime groups.

In 2019, Criminal Intelligence Service Canada, a federal agency, released its public report on organized crime, which provided an overview of the Canadian criminal landscape and the activities of organized crime groups that operate within it. It outlined that Canada’s legal gaming market is controlled by organized crime groups, particularly outlaw motorcycle gangs and traditional mafia-structured organized crime groups. It goes on to explain that the criminal groups operating these gaming networks “often try to circumvent Canadian law by running their websites on offshore servers” and they use “violence, extortion and intimidation to further their criminal goals.”

In terms of where the revenue is going, the report states that these groups use these illicit funds to finance other forms of criminality, such as drug smuggling and trafficking. Colleagues, it is not difficult to visualize the severity of harm that is possible with billions of dollars going into the wrong hands every single year.

Betting taking place through offshore sites and organized crime groups goes entirely unregulated. This puts Canadians at risk. Unsurprisingly, these groups have no interest in consumer protections or safeguards. There is no emphasis on problem gambling, addictions or mental health issues. In fact, the exacerbation of these issues is to their benefit.

The passage of this bill would allow for provincial governments to finally start regulating single-event sports betting. In 1985, the federal and provincial governments came to an agreement about how gaming would be managed, and it was agreed that the federal government would refrain from re‑entering the field of gaming and betting and “ensure that the rights of the provinces in that field are not reduced or restricted.” Since then, the provincial governments have developed and fine-tuned well-regulated, responsible gaming practices and frameworks, with strong operational controls and rules to ensure the integrity of the sports betting products offered and the safety of consumers participating.

In my province of Newfoundland and Labrador, this is done through a partnership with our Atlantic Canadian provincial partners under the auspices of the Atlantic Lottery Corporation, known as ALC, where profits are shared based on a proportional basis according to what is spent on lotteries in each province; 100% of ALC’s profits stay in the region to help fund services essential to Atlantic Canadians, like health care, education and infrastructure.

Colleagues, if this bill passes, these stringent provincial regulations, frameworks and consumer protections would all apply to single-event sports betting, and the product would be brought safely into the well-regulated light of day.

The regulations that would be put in place around single-event sports betting are significant, tangible and desperately needed. Some examples are age and identity verification to ensure minors cannot participate; information and data sharing between sports organizations, sports book operators, gaming regulators and law enforcement to protect the integrity of matches and prevent match fixing; prohibition on players, coaches and officials from wagering on sports; standards for advertising, marketing and the offering of odds; access to responsible gambling tools and self-exclusion options, such as weekly deposit limits, wager limits, session time limits, 24-hour take-a-break or even self-exclude, whereby they can voluntarily prohibit themselves from online play for 6, 12, 24 or 36 months.

In addition, colleagues, the Atlantic Lottery Corporation has launched an industry-leading online responsible gaming tool called the PlayWise rating. This tool provides players with a confidential personal play rating at the behavioural level to help them understand their play and how it is evolving over time. These safeguards are necessary to protect Canadians; however, they can only be implemented once single-event sports betting is no longer prohibited by the Criminal Code.

It’s also important to note that our provincial governments have been seeking this for more than a decade. The first provincial government request for this change was in 2009, and support has only grown since. The provincial governments stand in support of this bill, and just recently, Ontario’s Attorney General and Minister of Finance co-signed a letter to the Senate expressing the Province of Ontario’s support for:

 . . . the timely passage of Bill C-218 to help provinces in their efforts to provide legitimate and competitive gaming markets that protect Canadian consumers.

The letter states the provincial government’s belief that:

 . . . broader legislation, with a robust regulatory framework, will create a safe online gaming environment that is responsive to consumer choice while providing responsible gaming and consumer protection measures.

I’ve received a similar letter from the Atlantic Lottery Corporation, again, representing the four Atlantic provinces.

Currently, due to the underground nature of single-event sports betting operations, no taxes are being collected on this product, despite the $14 billion being spent annually by Canadians. This results in a situation in which Canadians are completely unprotected. They are first placing bets through systems that are easy to access but entirely unregulated. No consumer protections in place and the absence of tax revenues results in an underinvestment in programming that will provide support with problem gambling, addiction and mental health challenges.

In February, PricewaterhouseCoopers conducted a study on the potential economic impacts of this bill if it were to pass. It concluded that, in a high-growth scenario, sports betting revenues would increase by 900% within two years, from $241.7 million to over $2.4 billion. This rise in legal and taxable earnings would result in an associated increase in Canada’s total annual tax revenue of $509.5 million in addition to the regular gaming profits that are distributed to provincial treasuries. Colleagues, imagine the impact of these revenues every single year.

The increased revenues could also be directed towards addiction research, youth sports programming, health care and education.

The economic impacts of this bill would extend even beyond the increase in tax revenue and the investments in communities that would become possible. The PricewaterhouseCoopers report also found that within two years, almost 2,700 additional jobs would be created across Canada. This complements research from the Canadian Gaming Association, which shows that the average salary within Canada’s gaming industry is over $65,000 a year.

It is clear, colleagues, that this bill seeks to dry up revenue streams going to organized crime and operators of the offshore sites and redirect these streams to Canadians.

Many of Canada’s Indigenous communities have been calling for loosened restrictions on single-event sports betting. Just as this bill was coming to the Senate, the Saskatchewan Indian Gaming Authority, also known as SIGA, sent a letter to the Senate in support of the bill. SIGA is a non-profit organization that contributes 100% of its net income back to surrounding communities: namely, Saskatchewan’s First Nations, the Province of Saskatchewan and community development corporations. Through the operation of legal casinos, the organization has created employment for 1,800 individuals of which 65% are First Nations. SIGA’s letter states that only one tool that will greatly help the gaming industry recover going forward is the approval of single-event wagering. It continues in their letter:

SIGA Casinos, like other operators in Canada make significant contributions to the economy and we simply want the opportunity to compete and offer a product demanded by our customers. We currently see the unregulated grey market conducting business in our province with no benefit back to our stakeholders.

The letter also touches on the importance of consumer protections by stating:

Approving single event also protects the interests of our customers. We are always make sure our customers are well informed on the games we offer and the integrity of the games is protected. As a legal operator we are held to high standards of accountability in areas such as industry regulation, responsible gaming and the processing of financial transactions.

It is clear, colleagues, that they simply want a level playing field.

We must also consider how Canada’s prohibition on single-event sports betting is affecting our border communities. In 2018, the U.S. Supreme Court overturned a 1992 federal law in the U.S. that prohibited sports betting, and it is now up to individual states to decide whether to legalize it. At this point, almost every U.S. state has either legalized single-event sports betting or has active legislation seeking to do so. The list includes most of our border state neighbours. New York, Michigan, Montana and Pennsylvania have all legalized single-sport betting. This threatens border communities like Niagara Falls, Windsor and others as tourists and locals opt to go across the border to participate in legal gaming and betting. It was one thing when the main alternative to Canada’s legal gaming industry was the black market, but now, for many communities, an alternative that offers single-event sport betting is as simple as a 15-minute drive away.

Honourable senators, there is a reason this bill has widespread support from credible stakeholders. In 2020, the NBA, NHL, MLB, MLS and CFL put out a joint statement in support of Canada making this change, which stated:

Regulating single-game betting would allow for strong consumer protections as well as safeguards to further protect the integrity of sports.

This has been supported by provincial governments, labour groups such as Unifor and the Canadian Labour Congress, business organizations such as the Canadian Chamber of Commerce and numerous provincial and community chambers, law enforcement, mayors and other community leaders across the country, including provincial and regional lottery corporations, many Indigenous communities, the Responsible Gambling Council, the International Olympic Committee and the Canadian Olympic Committee. This broad support is indicative of the quality of this bill. The bottom line is that its passage would do much good for Canadians and for Canada.

I’ve discussed the numerous community groups, associations and individuals who are supportive of this bill. But I also think we have to ask ourselves, colleagues: Who would not want this bill to pass? Criminal organizations that are illegally and unethically profiting from Canadians with little or no regard for regulations, consumer protection, problem gambling or mental health would clearly not support this bill as it seeks to strip them of billions of dollars per year that they’re using to fund other illegal activities. Offshore gambling sites operate outside the purview of Canadian law. They would not be supportive either. We must take this back from the black and grey markets and bring it into the light.

Honourable senators, this is a bill that we should all support. A vote against it would not be a vote against gambling, it would be a vote against increased safeguards, regulations and community programming. We have an opportunity to responsibly regulate gaming and gambling in Canada and ensure that Canadians already participating in single-event sports betting have supports and safeguards to do so safely. We also have an opportunity to ensure that hundreds of millions of dollars are being invested annually back into our communities. Thank you, colleagues.

Senator Batters, do you have a question?

I do.

Senator Wells, would you take a question?

I will, Your Honour.

Thank you, Senator Wells. First of all, what is the current annual amount allocated by your province of Newfoundland to gambling addiction programs?

Thank you for the question, Senator Batters. With regard to gambling addiction programs, I think there are two. I don’t know the amount, but I know one is run directly through the Atlantic Lottery Corporation, which I mentioned was the lottery authority that the four Atlantic provinces use, and I know they have specific programs in place. I don’t know the dollar figure. Also, I don’t know the dollar figure that the Newfoundland and Labrador government spends on mental health and addictions, but I’m sure it is considerable as it’s in the news frequently. It’s a topic that I know our premier and previous governments have seen as very important. I don’t know the number, Senator Batters, but I know there are programs.

Yes, if you wouldn’t mind finding out. I’m interested specifically in the current gambling addictions programs, because certainly there are widespread programs available through provincial governments for mental health, as there should be, and this is Mental Health Week, so I’m glad to see that. But I would be interested to know that if you could find out.

I’m also wondering — and I will certainly be taking a look at it — whether the PricewaterhouseCoopers study that you referenced contains demographic information about the gamblers and projected gamblers under the major — I think you said 900% — expansion in gambling money spent under this proposed legalization.

Thank you again, Senator Batters. I’ll get the information that I’m not aware of, and I don’t recall from the PricewaterhouseCoopers report. But I do know now that a child the age of 10 can do single-event sports betting on these illegal offshore sites because there is no regulation. If it’s brought into the light in Canada under the regulatory authorities that each province has, and, in the case of Atlantic Canada, under their collective jurisdiction under the Atlantic lotto, there are third party verified age practices that they use, and it’s 19 and up. Again, I don’t know the demographics, but I know under a new regime with this law it would be better than the completely unregulated system that’s in place now.

Senator Wells, would you take a question, please?

Certainly, Senator Omidvar.

Thank you very much for your clarification of the context. I’m curious to know what the policy rationale was for the prevention of single-event sports betting, or do we just find ourselves in an accidental muddle here?

Thank you, Senator Omidvar. Here’s what happened as far as I can put together in my research: in 1985, when gambling came in, there was great concern about match-fixing. This three-bet or two-bet or multi-bet rule was brought in because it’s harder to have success in match-fixing one match and having the success of all three bets, I think, that you have to make. So it limited or inhibited that. And that’s fair enough.

The other significant thing that came into play, Senator Omidvar, was the internet, which came around the early 1990s. I recall a rudimentary internet around 1994. Of course, the high-profile, high-stakes and slick gambling sites didn’t come about until much later, and that exacerbated the problem.

That leads us to where we are today. This bill and bills very similar to this have been introduced in the past, including during my time here in the Senate. For various reasons, much of them to do with time but some to do with not completely understanding the bill itself — those essentially stopped the process.

I think we now have a greater understanding of the controls that can be put in place and of the amount of money being lost by Canadians by sending money outside of Canada through criminal organizations and offshore sites. We have a greater understanding now. But it was initially to stop match-fixing. Thank you.

I will, Senator Forest.

Thank you for your question, Senator Forest.

We had discussions with groups that represented the major-league sports. They see this now as a greater way to reach out to the customers they have. If it’s done in a regulated way, that concern they had is eliminated, because they don’t have that concern now.

You will know that there were discussions a number of years ago around the whole idea of having an NHL team in Las Vegas because of the association with gambling. Times have changed. That’s not an issue. Las Vegas has a hockey team, and it is welcomed widely. People appear to not associate it with gambling.

The group message that we heard from the NBA, Major League Soccer, the NHL and MLB — they got together to put their message into the Senate, to the sponsor of the bill here in the Senate and the sponsor in the other place — that they are now in favour of this because of the regulation, the greater outreach and the protections. Also, it happens anyway, and it’s better if it happens in a regulated environment than in an unregulated environment.

Senator Wells, will you take a question?

Certainly, Senator McCallum.

The Mohawks of Kahnawake have, for more than two decades, asserted their inherent jurisdiction to conduct, facilitate and regulate gaming and gaming-related activities within and from the Mohawk territory of Kahnawake. This jurisdiction has been recognized globally and never been challenged. The Mohawks of Kahnawake currently exercise this right by conducted, facilitating and regulating both land-based and online gaming.

More important, sports interaction is a vital source of job creation in their community, and the profits have done significant good, including during the COVID-19 pandemic. Chief Deer said that Bill C-218, as currently constructed, simply does not reflect the Mohawks of Kahnawake’s right and threatens the continued economic resilience of their community, including their ability to recover from the economic damage of COVID-19.

How will this bill impact the Mohawk jurisdiction over their right to gaming?

Thank you for your question, Senator McCallum. I read the press release from the Kahnawake band; I read it with great interest.

It was asking for them to maintain what they currently have. I don’t think that changes under this legislation. In fact, it levels the playing field so that every band, every province and every organization that regulates gambling in Canada has the same opportunity as the Mohawks have. I don’t think this in any way diminishes from an unfair playing field aspect; in fact, this levels the playing field.

I read the letter, and I recognize some people are not going to be for this bill. However, overwhelmingly, I heard from people who are for this bill for the reasons I outlined in my speech.

Senator Wells, I wonder if it would be possible for you to meet with Chief Deer and that Mohawk nation to discuss this.

Senator McCallum, I’d be happy to meet with the chief. I would also encourage the chief to appear at whatever committee the Senate decides to send this bill to, where they can present their ideas to the wider audience of the committee.

Honourable colleagues, we will come back to Senator Boisvenu.

Senator Boisvenu, you may continue your speech. You had 10 minutes and 44 seconds remaining.

The goal was to make victims the focus of the judicial process and recognize the role that they play in it by taking a much more proactive approach with them.

I would like to remind senators that it is often already difficult enough for victims to report their situation to the police. It is therefore essential to guarantee their safety and listen to their needs when they decide to take that step.

This amendment is in keeping with the directives of Crown prosecutors found in the Public Prosecution Service of Canada Deskbook. It says, and I quote:

Crown counsel should be aware of the interest of victims and witnesses in the release of the accused on bail, particularly in situations where the conduct reflected in the charges may imply a potential threat to the victim or witness.

What is more, as I mentioned earlier, I want to include new release conditions under section 515. If there is a risk of violence or death, I think that the current conditions that a judge can impose under section 515 are much too weak to prevent an offender from committing a violent crime. As I explained earlier, I want to include the wearing of an electronic bracelet in the interim release conditions.

The second condition I wish to add will give the judge the option of ordering province-approved addiction treatment or treatment for family violence under the court’s supervision. This is new, but not necessarily new to the Criminal Code. Each case is different, and we must give judges the necessary discretion to decide whether the accused needs treatment for a violence problem for the sole purpose of ensuring the safety of the victim and of a future spouse, should the person enter into a relationship with a new spouse.

With regard to drug addiction, I relied on testimony received during my long consultations. Helping these people fight their addictions will reduce the risk of violent behaviour and of reoffending. In Canada, there are already therapies used in cases of driving under the influence. Since this solution is already helping some people, why not apply it to cases of domestic violence?

I spoke with victims who said that, in their own cases, therapy would have helped better control the violent behaviours of their abusers. Provinces know this and increasingly support organizations that offer these types of treatment to violent men. However, I understand that we need to do more. There are offenders who are aware of their problems and who know that the only way to avoid committing an irreparable act is through therapy.

Another proposal in the bill has to do with providing a copy of the order. The justice must first verify that the intimate partner of the accused has been informed of their right to request a copy of the interim release order, which includes the conditions set out in subsection 515(14) of the Criminal Code. This amendment would uphold the principles of the Canadian Victims Bill of Rights with respect to the right to information, so the right to be informed of the accused’s conditions of release. The act already stipulates that the victim may be provided this information upon request.

However, based on the testimony I heard, I think the nuance here is that victims are often not made aware of their rights and, as a result, are left to their own devices in a process that is difficult to understand, when they are already in a complex and difficult situation themselves. This point would address one of the recommendations made by the Federal Ombudsman for Victims of Crime. In his document entitled A Cornerstone for Change, dated May 13, 2014, the ombudsman highlights a weakness in the Canadian Victims Bill of Rights, and I quote:

 . . . the Bill does not assign specific responsibilities to agencies within [the] criminal justice system to automatically inform victims of the rights to which they are entitled.

The ombudsman proposed the following:

That victims are automatically provided, at the time of the crime, clear information about their rights under the Victims Bill of Rights, including what information they are entitled to receive and who is responsible for providing it and at what point.

I would now like to talk about another point in my bill that I view as an extremely important concept. I would like to fix a persistent flaw in Bill C-75 by imposing the reverse onus for offenders seeking temporary release who are facing domestic abuse charges and have previously been discharged for similar offences.

I do not consider a discharge to be synonymous with less serious. In my view, domestic violence, in all its forms, is always serious. If a person who has been discharged in the past is charged with domestic abuse again, he or she would have to prove — this time — that there are no grounds for his or her detention, as would individuals who have never received a discharge. This is only fair to the victims, because the victims do not get this second chance.

In early December 2018, Christine St-Onge was killed by her boyfriend on a trip to Mexico. Mexican authorities searched for several days, finally finding her body near the hotel where the couple had stayed. On December 5, 2018, after a hasty return to Canada, Christine St-Onge’s partner, Pierre Bergeron, committed suicide. The investigation formally identified Pierre Bergeron as the chief suspect in her death. People who knew Ms. St-Onge described Pierre Bergeron as a violent and manipulative man. He had caused her to become estranged from her sister, her friends and her children.

Nancy Morel, Pierre Bergeron’s ex-spouse, described him as an extremely possessive, violent and jealous man. Nancy Morel had decided to report him to the police to protect herself from his behaviour. Pierre Bergeron pleaded guilty to charges of assault and, believe it or not, was granted a discharge. On May 8, 2019, Christine St-Onge’s sister, Annie St-Onge, appeared before the Standing Committee on Legal and Constitutional Affairs, where she said, and I quote:

In the weeks that followed that tragic event, we learned that Mr. Bergeron had had a history of spousal abuse. A former spouse opened up to the media and said that a spousal abuse complaint had been filed against him with the police. As Mr. Bergeron was well-to-do and a narcissistic person, he defended himself with the help of his lawyers. He was granted an absolute discharge in exchange for a donation to an organization that provides assistance to battered women.

 — How ironic. —

What hypocrisy! There was no information in his file concerning assault or careless use of a firearm. The woman had to fight to be heard and to recover her property. It appears that Mr. Bergeron then filed a motion to overturn the verdict.

A conditional or absolute discharge is sort of like a second chance that is given to a person who acknowledges being found guilty of a serious offence. Based on the evidence at hand, the judge has to assess the gravity of the offence, the circumstances surrounding the offence, the state of mind of the accused and their risk of reoffending, as well as their genuine desire to not reoffend. The decision to grant a discharge is not taken lightly by a court. It must weigh the facts, the gravity and the risk of reoffending.

In the case of domestic violence, I think it is unfair that the reverse onus does not apply to cases where the accused has already received a conditional or absolute discharge. It is basically like giving a second chance to a person who, according to the evidence, is accused of a similar offence and has no obligation to demonstrate the grounds for their release. As I mentioned earlier, the process for granting a discharge is not an easy one and, as a result, if the judge was, for various reasons, unable to properly assess the accused’s risk of reoffending, then the accused should potentially be considered a repeat offender in their own right and judged as such.

That last point concludes the first set of amendments to the Criminal Code that I am proposing with this bill. Society is very judgmental toward victims of domestic violence, but those who have never experienced domestic violence cannot understand the control that one person may have over another in such a context.

Honourable senators, it is up to us as legislators to give victims more guarantees so that they can have confidence in our justice system, which needs to be more responsive to victims and be more effective.

The second element of my bill concerns peace bonds under section 810 of the Criminal Code, “sureties to keep the peace.” A judge can order the accused to sign a peace bond, and the individual must agree to comply with the conditions set out in this bond.

In Canada, section 810 of the Criminal Code is a general instrument of preventive justice, and it creates a source of criminal liability even if no offence has been committed. Breaching any of the conditions imposed in the peace bond can result in the defendant being charged under section 811 of the Criminal Code and, if convicted, being sentenced to a maximum of four years in prison.

In November 2020, a report was presented by the Université du Québec à Montréal on section 810 of the Criminal Code. The report was the result of a partnership between the Regroupement des —

Senator Boisvenu, I’m sorry, but your time has expired.