The Canadian government announced this week it was considering a move to restrict banks and credit card companies from conducting financial transactions with Internet gaming operators in the country, much like what the U.S. attempted to accomplish with the Unlawful Internet Gambling Enforcement Act (UIGEA) that was introduced in October, 2006.

But if history has anything to do with it, the days of regulated Internet gambling in Canada are not so far off in the distant future, says Michael Lipton, a gaming law expert and the senior partner at Elkind & Lipton in Toronto.

“History demonstrates that over the past 50 or 60 years the trend in [Canada] is to regulate, not prohibit,” says Lipton. “It happened with horse racing about five years ago. It happened with land-based casinos in 1969 and then it happened again about seven years ago when those casinos were allowed to start offering craps so they could compete with the border casinos.

“If the public wants something regulated, and the regulation benefits the country, it usually happens.”

Nearly 500 Internet gaming sites hold a permit issued by the Kahnawake Gaming Commission, which is based in the Kahnawake Mohawk Territory near Montreal. The Commission, which was established in 1996, claims that it is empowered to regulate and control gaming and related activities within and from its territory since it is a sovereign nation.

But according to Lipton, the Kahnawake isn’t sovereign, but it is protected by Section 35 of the constitution that says the government must recognize and respect traditions and customs that are integral to their culture. Whether or not gaming would fall under that category is up for debate, but Lipton does not envision a scenario where the government would test it by moving into Kahnawake territory.

“Practically speaking, I don’t think the government is looking to move on this because it could lead to violence,” Lipton said.

He added that the latest talk chatter about the government looking to consider new measures against the Internet gaming sites stems from the urging of the Woodbine Entertainment Group.

“This is all about Woodbine trying to protect their monopoly,” said Lipton, who added that Woodbine was also the force behind a bill a few years ago that attempted, but failed, to ban all online gaming sites from advertising in Canada. “Woodbine’s argument is that these sites are hurting their business but I don’t follow that logic. Are they trying to say that if Internet gambling is shut down, all of a sudden people are going to flood the race track to bet the horses? That just doesn’t make sense.”

In Lipton’s mind, what the issue boils down to is doing what the public wants and what’s most beneficial to the country as a whole.

“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.”

Source: http://online.casinocity.com/news

Posted by Diana Sterling in Casino News | No Comments » March 23rd, 2008

SportingBet.com launched its new sports betting website, ca.sportingbet.com, which will allow the UK-based company to offer its premium service to the ever-expanding Canadian sports betting market.

The expansion into Canada is just another component of SportingBet’s aggressive expansion plan, which has seen growth into other sports betting hotbeds.

With the development of the new website, the Canadian bettor is provided with a strong, viable wagering option outside of the unregulated offshore industry or having to travel to Las Vegas.

“We are very excited about entering the Canadian sports betting market,” says Gary Lewis, head of Canadian Operations. “We are committed to offering Canadian customers more of what they want to see whether it’s more sports, more odds, more products or more promotions. Our dedicated Canadian team is there to ensure this commitment becomes a reality.”

Lewis says that getting into the burgeoning Canadian sports betting market is a key component to its overall expansion plans, which includes the further development of a product specifically tailored for this group of bettors.

“Canadian people want a safe, secure and trustworthy sports book where they know their money is safe. We have been bringing this to our customers from all over the world since 1998,” says Lewis of SportingBet. “Our customers appreciate the transparency and clarity of our financial dealings. It makes sense to offer this to Canadians too.”

With its extensive bookmaking background, and strong technical and financial platforms, SportingBet should quickly gain recognition from the Canadian sports bettor.

SportingBet currently takes wagers on 22 sports from the top leagues and events from around the globe. But closer to home, SportingBet offers a myriad of wagers, including the In-Play wagering option, which allows Canadian bettors to wager on their favorite NHL and NBA games while the game is in progress. Major League Baseball and the Canadian Football League will be added when both leagues start up at the end of March and June respectively.

SportingBet, with more than four million registered customers, offers a wide range of betting and gaming products from poker and sports betting to casino and games such as backgammon.

Operating out of regulated and licensed markets since 1998, SportingBet has been listed on the AIM market of the London Stock Exchange since 2001. SportingBet is licensed and regulated by the Alderney Gambling Commission in the Channel Islands off the coast of England.

Posted by Diana Sterling in Casino News | No Comments » March 23rd, 2008

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Posted by Diana Sterling in Casino News, Competitions, Poker | No Comments » March 19th, 2008

The Canadian federal government said yesterday it is considering new measures to stamp out Internet gaming sites based on a native reserve in Quebec, in a move that could spark conflict between Ottawa and Canada’s First Nations ahead of a second national “day of action” this summer.

The government deems the 400 or so poker and sports-betting sites operating from the Kahnawake reserve near Montreal to be illegal, but neither federal not provincial governments have attempted to enforce the law. Now Ottawa is reviewing that position.

“Following recent concerns surrounding Internet gambling in Canada, the Minister of Justice [Rob Nicholson] has asked his officials to examine whether the enforcement of the Criminal Code provisions could be assisted with other measures,” said Genevieve Breton, Mr. Nicholson’s director of communications.

The “other measures” are understood to be moves to restrict banks and credit card companies from conducting financial transactions with illegal Internet operators. Similar legislation was enacted in the United States two years ago.

The Mohawks of Kahnawake say these laws do not apply to them since they are a sovereign nation. They also cite section 35 of the Constitution, which was inserted to protect native culture. The Mohawks say that gaming has been central to their culture as a means of settling disputes through competition, not violence. Other native groups, such as the Alexander First Nation in Alberta, have said they plan to emulate Kahnawake.

Owners of horse-racing tracks, such as Great Canadian Gaming Corp., say they pay $1-billion in tax receipts every year to various levels of governments and incur huge expenses putting on the races. “These offshore operations just poach horse-racing and no one can do anything about it. They’re parasites on the butt of Canada,” said Ross McLeod, chief executive of Great Canadian Gaming, which owns four tracks in Canada.

The track owners have also suggested that governments force Internet service providers to block the sites from Canadian bandwidth. “I expect the government to do the right thing and protect our country’s interests,” Mr. McLeod said.

Chuck Barnett, who is a member of the board of supervisors for Mohawk Internet Technologies, a utility company that provides connectivity services for the site owners at Kahnawake, sees Ottawa as a foreign government that has no business regulating activity on Mohawk territory. “However, if I were a Canadian, I might instead be more interested in how explicit legislation could serve as the catalyst for a potential source of economic development, employment and revenue through taxation,” he said.

This view was echoed by Michael Lipton, a Toronto lawyer who specializes in gaming law. He said the horse-racing industry has had a monopoly on gambling in Canada for years, with Woodbine Entertainment currently holding a lock on government-sanctioned online horse betting.

“I guess if I had a monopoly, I wouldn’t want anyone to compete against me either,” Mr. Lipton said.

He said the United States has faced serious technical difficulties implementing restrictions on the payment system. “They are completely bogged down on how to block this system.”

He acknowledged the Mohawks have had some problems with fraud. The Kahnawake Gaming Commission, which regulates Web sites operating from the reserve, fined one popular Web site — Absolute Poker –$500,000 after players complained of irregular betting that was traced back to someone associated with the site. But he said most operations are transparent and credible.

Rather than attempting prohibition, Mr. Lipton said the government should bring the Kahnawake sites into the system and regulate them. He said this would protect the vulnerable, guard against money laundering, bring in tax revenue and provide a competitive edge in the gaming software market in terms of international trade.

“I think [Ottawa] should embrace this and recognize that people don’t want to be in a position where the government tells them what they can or can’t do in the peace of their own home,” he said.

Posted by Diana Sterling in Casino News | No Comments » March 9th, 2008

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Posted by Diana Sterling in Casino News, Poker | No Comments » March 6th, 2008