Internet Gambling

Scope of Industry

Internet gambling has only existed since the mid-1990s. Nearly 2,000 sites worldwide generate an estimated $9 billion in on-line betting. Experts predict this will grow to over $16 billion by 2006.

Legal Status in Canada

The Canadian Criminal Code provides provincial and territorial governments with the authority to conduct and manage lottery schemes through computers, including the Internet. However, it also requires that such transactions be made wholly within the host jurisdiction, by residents of that jurisdiction.

Provincial and federal laws cannot regulate Internet gaming sites outside their jurisdiction. Ascertaining the integrity and background of on-line operators outside of Canada is almost impossible. However, any legal on-line gaming sites introduced in Canada are regulated under the federal Criminal Code and relevant provincial legislation.

Canadian jurisdictions have moved cautiously towards implementing legalized, on-line gaming sites.

In spring 2004, the Canadian Pari-Mutuel Association (CPMA) permitted Canada’s first legal, on-line wagering site, allowing people to use Internet services for wagering on horse races. Soon after, the Atlantic Lottery Corporation introduced limited internet gaming.

In British Columbia, the British Columbia Lottery Corporation is authorized to provide on-line lottery schemes.

Concerns about Internet Gambling

Although Internet gambling is popular, there are concerns related to issues unique to on-line gambling. These include access by underage patrons, regulating the fairness of play, protection from fraud, and the potential for increased gambling-related problems.

In contrast to traditional gambling venues, where gamblers see the actual money being won or lost, people participating in unregulated Internet gambling sites may easily lose track of how much money they are spending and gamble beyond their means.

On-line gambling can increase risks for potential problem gamblers, due to easy, anonymous, 24-hour access to gambling products from the privacy of their home, work, or school computer.

For more information on this subject, click the following link:

• Internet Gambling: Is it Worth the Risk? (by Jan Zacharias) [PDF 0.8MB]

Risks to Youth

Due to the prevalent use of the Internet by today’s youth and the potential for anonymity, there are additional concerns regarding young people’s use of on-line gambling. Although many Internet sites require gamblers to certify they are of legal age, unregulated sites make little or no attempt to verify the accuracy of the information.

Youth that already spend significant time playing on-line games for amusement may be at higher risk to develop a gambling addiction. In addition, they may not recognize that their wagers are legitimate financial transactions.

British Columbia’s Gaming Control Act does not allow persons under the age of 19 to participate in any form of gambling other than very small, community-based ticket raffles conducted for fundraising purposes.

Tips for Gambling On-line

• Keep track of the amount of time that you are playing on-line.
• Only spend what you can afford to lose. Keep track of your spending while playing and remember that the numbers on the computer screen are REAL MONEY.
• Avoid chasing your losses.
• Look for sites that are legal and regulated in your jurisdiction, and those that allow you to monitor your spending and time online.