Regulation of Online Gambling in Canada

Abstract

Unlicensed online gambling is illegal, although it is not explicitly banned and there exists no current framework to ban it. It is illegal when online casinos operate without a license in a given province, as that breaks said province’s regulations. Current laws such as the criminal code of canada lack specificity on the topic allowing unregulated providers to flood canadian markets to the detriment of existing providers, tax revenues, public health and consumer choice. This paper seeks to provide options for how canada might regulate online gaming websites to safeguard the continued survival of domestic gambling institutions, protect those who are vulnerable to gambling addiction and make our gambling laws consistent and competent. Canada has reasons and the ability to implement the best aspects of the UK and US approaches to online gambling regulation which together provide methods of regulating this new industry which are conducive to diffusion into the canadian setting. To determine whether different policy options are viable, they will be analyzed using Shipan&Volden's mechanisms for policy diffusion which include learning from early adopters, economic competition, imitation, and coercion. According to policy diffusion theory, canada is likely to implement some sort of regulation based on all four factors, as similar countries have had replicable successes and teachable lessons from shortcomings. There is also potential for international standards on the issue. economic competition will also lead to this issue being discussed as the online market becomes more important. canada has the ability and reasons to engage in an attempt to regulate the online gambling providers who make their services available to those in canada. Likely implementations include emulating other schemes through amendments to existing laws to more effectively prohibit the practice as well as the creation of new and more accessible paths for providers to become legal and regulated.