“We need to modernize Canadian gaming law to allow our industry to compete on a level playing field”

How do you assess the current state of the Canadian gaming market and what are the biggest challenges facing the industry?

Canada’s gaming industry delivers quality entertainment and continues to grow on many levels. Worth approximately $16 billion annually and directly employing more than 50,000 people, it is not without its challenges.

Similar to other jurisdictions, ageing customer demographics, evolving technology and changing consumer preferences challenge gaming operators. It is estimated that over $6 billion in gross wagering leaves Canada and destined for offshore online gaming sites, with no oversight by Canadian gaming regulators or taxes remitted. This gap in Canadian law frustrates Canadian operators, as products such as single-event sports wagering are illegal them to offer. Recent attempts to change sports wagering laws were thwarted in the Canadian Senate as Senators refused to bring the bill to a vote prior to the most recent election.

DFS and sports wagering have been receiving lots of attention in Canada lately, how is the industry reacting?

Daily Fantasy Sports (DFS) products are not considered games of pure skill in Canada and as such they are illegal unless they are “conducted & managed” by the provincial governments or their agents. The “conduct & manage” requirement is a provision under the Criminal Code of Canada that gives provincial governments oversight of gaming.

Parlay sports wagering has been available in Canada for decades, but with unrestricted access to offshore online betting sites Canadian bettors prefer more traditional sports books available via the internet. The CGA pursued law changes in Canada as Canadian offshore wagering grew to over $4 billion annually.

While amendments to the Criminal Code to permit single-event wagering passed unanimously in the House of Commons, the Senate of Canada refuses to bring the matter to a vote.

The Canadian Gaming Association recently raised the issue of illegal DFS operations in Canada to gain the attention of lawmakers on the need to modernize Canadian gaming law and allow Canada’s gaming industry to compete on a level playing field.

What is you outlook for 2016?

The coming year will be full of promise and challenge for Canada’s gaming industry. The Ontario Lottery and Gaming Corporation’s modernization project that will see private sector operators assume day-to-day operations is hitting stride may ultimately define the direction nationally, especially with private sector operation of the provincial lottery.

Toronto’s TSX has become a favoured location for gaming technology companies looking to raise capital and enter the public markets, with NYX and Innova being the two most recent examples, joining Amaya and The Intertain Group. We look forward to seeing additional companies leveraging the Canadian markets to raise capital.

While parts of the Canadian economy are experiencing difficult times due to a decline in the resources sector, we look to 2016 to be year for everyone to “hold their own”, with changes to Canadian gaming laws hopefully bringing some welcome news.