Csnadian 6Ie News
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Csnadian 6ie News Issue 43 November, 1997 Wired Gaming Deserves to be followed closely! from paper) and, should someone residents. As one sage put it to us, some where break rank, that it could why would Nevada, with more slots bring the tidy system now in place and casinos in closer proximity to its crashing down upon itself. residents than any other jurisdiction We all know about Caribbean-based on earth, need internet gaming? No internet casinos. They'll never Nevada operator is offering internet Politicians and gaming regulators as impact upon us because the public gaming now or will likely do so until well as their offshoots - casino and will be too worried about the the Nevada gaming commission lottery executives - have for many fairness of the games and anyway, writes the regulations which it is not years taken comfort in the knowledge it's illegal for them to operate, or expected to do until the state sees that restrictive legislation, the grant accept bets in Canada and the what internet legislation Washington of licences, and government United States. passes this spring. We are told that ownership shield them from the while Nevada is lobbying to have the onslaught of competition. It's end of debate, you won, to the legislation written in a way that extent that you believe that every- permits Nevada operators to receive While some bristle at the power and one knows the law and follows it, bets from any jurisdiction which has privilege this gives to those in and that you believe governments itself approved gaming (we guess that control, it is a system which has given have the technology to catch those leaves Canada in and Utah out), this is the public a measure of protection who do not. a long shot. Watch for them to target while allowing governments and To play the devil's advocate, what Asian and other less regulated those fortunate to have licences, to jurisdictions which leaves our system benefit enormously. do we do if people start betting significant money (who would add intact but will we then want to do this Within the Canadian context, the it up or decide what 'significant' too? federal Criminal Code continues to is?) on off-shore internet casinos or Canada's lotteries have wisely kept an buttress the status quo while a international lotteries and it became eye on internet gaming since 1995. political horsetrade agreed to over a apparent to the guy on the street that Late in that year the Inter-Provincial decade ago binds the federal and the government lacked the tech- Lottery Corporation created a sub- provincial governments to one nology, as we understand is the case committee to monitor the growth and another. While the federal govern- today, to catch them? use of the internet as well as look at ment has, at times, been tempted to let We have talked with many internet legal and regulatory areas impacted by go, both fear breaking the bonds lest a casino providers - few understand internet gaming. While the sale of horde of other issues come rushing in. why anyone would want to operate lottery tickets, especially with recent It is not our intent to say that this is out of North America - and they advances in encryption technology, is about to happen. To the contrary, the have few concerns about law increasingly viable, 'in home' lottery provinces are more dependent on enforcement. Their biggest concern sales has a stigma with which their gaming revenue than ever before is to build credibility with the public governments may still be hesitant to and the feds, for now at least, have and, the flip side of this, to stay grapple. 'Rogue' state lotteries in other fish to fry. We do think, away from scandal. Sound familiar? Australia and Germany (in Australia however, that technological advances What of the likelihood of someone states have their own criminal codes in gaming (internet, wide-ban within the established gaming order and lotteries) could pose a threat to telephone lines) will soon transform breaking rank? Canada's lotteries if they start using the way in which states and the internet to sell their tickets in provinces: conduct gaming within Nevada recently agreed to allow Canada. their own jurisdictions (a move away licensed operators within that state to offer internet gaming to its This past spring a Private Member's Page 2 Canadian GAMING News Bill (Bill C-353), which would have I I amended the Criminal Code to allow I Developments to Watch . the federal government, either alone I or in conjunction with the provinces, Alberta As part of their response to the to conduct and manage a lottery Several months ago we wrote that surprise August RFP, respondents scheme on the internet, was we expected the Alberta Gaming were to identify new products to introduced into the House of and Liquor Commission to link supplement the existing three Commons. For the purposes of the authorized BOT games. Revised code, a 'lottery scheme' includes all some of the slots in Calgary and Edmonton casinos in a progressive security features will also attempt to forms of gaming including casino and reduce 'leakage'. While the RFP bingo. While Private Members Bills and that this would be done in rarely go anywhere (this Bill died October. This has happened with stated that one company would also when the federal election was called), four slots in each city's five casinos be selected as sole retailer, we gather C-353 is interesting for two reasons: now linked. An unexpected bonus that this has not happened and that all for the casinos was the current retailers will stay in place. First, it would have forced the federal commission's decision to also link October was a big month for Len government to take a stand on this the two cities immediately. Up until issue, if only to say it did not want the Stuart. In addition to being a major the time of the decision it was shareholder in Stuart Entertainment, bill to proceed. The feds would love expected that the linking of the two to get into gaming without appearing which owns Bazaar & Novelty, Stuart cities would come as a second step to break the deal negotiated with the is also a major player in the Star of provinces and, to this end, it is later on. Fortune group which won the right to interesting that they allowed the Bill A Mikohn Gaming wide-area own and operate 5 full time and 2 part to receive second reading. Since the progressive system is being used to time Ontario charity casinos. internet did not exist at the time of link the total of 40 slots. Four Specialty Print, owned by Jack and that agreement, the feds might have Jackpots, worth a total of Jim Johnson, pulled all the stops in its argued (if only to give themselves $73,25 1.06, have already been won. bid to win. Its initiatives included a some leverage in another area) that The largest was $39,729.59. four page supplement in The internet gaming is outside of that Financial Post and the appointment agreement. Break Open Ticket Contract Awarded of an Advisory Board. The board is While the provinces do not want the composed of two former Major- feds to enter any form of gaming, they The Alcohol and Gaming Generals, a former Chief of Police of also know that they need the federal Commission of Ontario announced Metropolitan Toronto, and a former government's support to amend the October 3 1 that Bazaar & Novelty Ontario Cabinet Minister. Criminal Code to get into internet and Specialty Print (Nevadaman) gaming themselves. Even though an have been selected to be the sole Northern Belle Casino amendment to this effect does not manufacturer of break open tickets We have not been able to get a appear to be high on the list of in Ontario for a period of five years confirmation nor a denial of a rumour provincial gaming priorities, things beginning November 3, 1997. The to the effect that Hilton Hotels Corp, could change quickly if someone companies, which are based in St. which owns the Northern Belle, has started poaching their customers. We Catharines, already have the lion's signed an option with a Detroit understand Denis Mills, the author of share of the Ontario market which proponent move the Belle to Detroit the first Bill, plans to introduce the commission estimates at two in the event the proponent wins the another. billion tickets annually. right to open a casino there. As a final point, the competition for Bazaar & Novelty will have the Despite the lack of a response, our market share is also prompting exclusive right to print tickets own understanding is that the Hilton 1 Canada's horse racing industry to intended for sale to all third party Ontario Casino Corp agreement look closely at the internet. Nevada retail locations. This will include allows the OCC to purchase the Belle race books can already accept bets all tickets sold by provincially between the 18th and 30th month of from outside of that state. In our licensed charities. Specialty Print Feature Interview this month, David the agreement for $1.00, or to require has been awarded an exclusive that Hilton buy it back for $6 million. Willmot, of the Ontario Jockey Club, contract to print tickets sold in talks about the OJC's action before As we are now at about the 25th conjunction with bingo events and the Federal Court of Canada.