B.C. bettors hit potential jackpot with regulatory change
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Legalized single-game sports betting launched in B.C. this month for the first time — part of a bid to put the squeeze on bookies and the grey market | sb-borg/Getty Images
Many British Columbian’s engaged in their classic pastime over the weekend: sports betting. It would have been the first time they could legally place a bet on the outcome of a single game or event in Canada.
With gambling organizations such as DraftKings Inc. (Nasdaq:DKNG) sponsoring major sporting events and sports commentators broadcasting Las Vegas odds live on air, it might be forgotten that not long ago sports betting was not only considered taboo by the major professional leagues but it was also illegal in most of the U.S.
Before 2017, pro sports leagues would not locate a team in Las Vegas for fear that its proximity to organized gambling would jeopardize the credibility of the sport.
While sports betting was legal in Canada before August 27, it was illegal to bet on the outcome of a singe event or game. This was done in an attempt to protect against game fixing.
While there have been cross-partisan attempts over the years to remove this restriction, particularly after sports gambling became legal in the U.S., a private member’s bill recently broke through and received royal assent to eliminate seven words from the Criminal Code of Canada that criminalized betting on a single game.
However, this doesn’t necessarily mean that all Canadians were able to place a single-event bet this past weekend. Gambling is a provincial jurisdiction, so provinces now have the option to regulate single-game sports betting how they wish.
The BC Lottery Corp. (BCLC) was ready to hit the ground running over the weekend, offering single-event wagering through PlayNow.com, its gambling website. BCLC had been advocating for a change to the federal law long before this bill was proposed.
“For us the importance has been wanting to have legalized single-event sports betting so we could compete with some of those grey market websites that don’t produce jobs or pay taxes or support revenue in B.C.,” said BCLC spokesman Matt Lee.
The ability to bet on individual games rather than having to parlay that bet with other outcomes breaks a major obstacle. The Canadian Gaming Association estimated in 2020 that $4 billion in gaming revenue was lost to grey market sites annually and $10 billion was lost to illegal bookies annually. By legalizing single-game bets, the BCLC is no longer at a competitive disadvantage, previously not being allowed to offer bets that others could.
BCLC had already made changes more than five years ago to provide British Columbians with more betting options, including the introduction of novelty bets, like coin flips results and which colour of Gatorade is dumped on the winning coach of the Super Bowl. Through PlayNow.com, BCLC was the first provincial operator in Canada to offer bets on U.S. elections back in 2014.
Lee said BCLC hopes it will see a traffic boost now that it is allowed to offer more traditional sports-betting options. He added that the hope is British Columbians using grey market sites will make the switch to PlayNow.com, so that gambling revenue generated can be used to support social and community programs in the province.
“Our goal has always been ‘keep gambling revenue in British Columbia,’ and we’re certainly hopeful that single-event sports betting will give us the tool to do that,” said Lee.
“We’re hoping British Columbians will understand that PlayNow is the only gambling website operating in B.C. where revenue does go back to British Columbians and supports important initiatives like health care, education and community programs.”
While this new legislation allows BCLC’s sports betting product to be more competitive with grey market gambling sites, the grey market will still exist.
Lee said BCLC and other provincial gambling organizations have always pushed for greater action against these sites, but added that it’s a problem bigger than B.C. and requires a federal response. The BCLC is exploring what shape physical sportsbooks will take in B.C., including the possibility of having them at casinos, bars and other hospitality locations.
“We’re looking at how to best implement [sports gambling] across our land-based channels, and we’re in dialogue with government and our service provider partners to figure out how to best introduce that to British Columbians,” Lee said. •
