Single-Game Sports Betting Legalized in Canada
On August 27, single-game sports betting will become an authorized activity in Canada through the Safe and Regulated Sports Betting Act, marking a seminal change to the country’s gaming industry. According to an article, by Covers Sports Betting Analysis, summarizing the new law, upon the activity’s legalization, residents will be free to participate in wagering on everything except horse racing.
Previously, the country permitted a parlay-model of sports betting, but, through the new law, Canadian provinces and private companies alike can offer single-game sports betting. Companies seeking to offer this new form of betting in Canada must first receive an invitation to do so.
Until platform provider companies release new sports betting applications, Canada’s government-owned lottery corporations will remain the exclusive option for sports bettors. The Ontario Lottery and Gaming Corporation, Loto-Québec, and the British Columbia Lottery Corporation are preparing to introduce new single-game sports betting capabilities within existing websites and mobile applications for their respective provinces on August 27.
Illustrating the opportunities introduced by the Act, the British Columbia Lottery Corporation, in a Tweet, noted that it is exploring additional “single-event sports betting across our land-based channels, including at casinos, retail, and hospitality locations” in British Columbia.
The rush to release new sports betting options throughout Canada is tempered by renewed efforts to regulate the country’s growing gaming industry. While single-event sports betting has the potential to strengthen the Canadian economy, the activity must exist in a “regulated and safe environment,” according to a statement by Minister of Justice and Attorney General of Canada David Lametti.
On August 21, the Pokagon Band of Potawatomi Indians, a tribe of over 5,900 citizens, announced the election of its new tribal council members: Rebecca J. Richards was elected as tribal chairwoman, the first female chairwoman of the Pokagon Band since 1994; Sam Morseau was elected secretary; Mark Topash will serve as member-at-large; and Barbara Ann Warren was elected to serve as elders representative. Each member will serve a three year term.
Chairwoman-elect Richards noted in a press release: “I’m looking forward to working with members of our Tribal Council and our wonderful staff to pioneer a new path for our people.” She further noted: “I think this election is a real testament to the notion that women of all colors and creeds are considered seriously as trailblazers. I’m excited to implement a style of leadership that puts the welfare of all members of our Nation first.”
The Pokagon Band operates a 10-county service area that includes four southwestern Michigan counties and six northern Indiana counties. The Pokagon Gaming Authority, led by Tribal Council members, operates the Pokagon Band’s Four Winds casinos, with three locations in Michigan and one in South Bend, Indiana.
According to a press release, Michigan internet gaming operators reported $92.3 million in internet gaming gross receipts for July. Internet sports betting operators received $19.6 million in total gross sport betting receipts and reported a total handle of $188 million for the month.
Taxes and payments are based on adjusted gross receipts, which were $83.1 million for internet gaming and $12.4 million for internet sports betting during July. The operators paid approximately $17.8 million in taxes and payments to the State of Michigan for July, with Internet gaming contributing $17.1 million and internet sports betting contributing $762,220.
During July, Internet gaming adjusted gross receipts increased 25.6% month-over-month. This increase is due in part to June receipts being reduced by MGM Grand Detroit’s first free play deduction since launch in January. Michigan law limits the deduction for internet casino gaming free play to 10% or less of gross receipts in the first three years after launch.
For internet gaming, the state receives 70% of the total tax from the commercial operators and 80% of the total payment from tribal operators. The tax and payment rate ranges from 20% to 28% based on yearly adjusted gross receipts.
For internet sports betting, commercial operators pay 70% of the 8.4% tax to the state and 30% to the city of Detroit. Tribal operators make an 8.4% payment on adjusted gross receipts to the State of Michigan.
The three Detroit Casinos – MotorCity Casino, MGM Grand Detroit, and Greektown Casino – reported city wagering taxes and municipal service fees of $4.8 million for:
- Internet gaming taxes and fees: $4.4 million
- Internet sports betting taxes and fees: $377,233
Tribal operators reported making total payments of $2 million of wagering payment to the tribes’ governing bodies according to the MGCB.
From the Jan. 22 launch through July 30, aggregate internet gaming adjusted gross receipts totaled $518.7 million and aggregate internet sports betting adjusted gross sports betting receipts were $52.9 million.
An online gaming and sports betting revenue distribution table is available on the agency’s website.
During July, 13 operators were authorized for one or both forms of online wagering. Details for each operator’s internet gaming and internet sports betting results are available in tables published on the MGCB website.
Gun Lake Casino recently presented four public safety agencies with $39,500 in monetary donations to better provide public safety services to the local community.
- Allegan City Police Department received $7,158.00
- Allegan County Search and Rescue (SAR) received $1,000.00
- Leighton Township Fire Department and Hopkins Area Fire Department received $31,436.39
In a recent press release announcing the donation, Sal Semola, president and chief operating officer of Gun Lake Casino, noted: “Gun Lake Casino is exceptionally proud of our longstanding and strong commitment to the local public safety agencies in our area. Today, we are honored to support our local public safety departments with the monetary donations needed to purchase the latest life-saving equipment.” Mr. Semola further commented: “The importance of safety professionals is undeniable and every essential worker should have the necessary tools to protect our community.”
Representatives of the Tribal Council and Gun Lake Casino were joined by members of the Allegan City Police Department, Leighton Township Fire Department, Hopkins Area Fire Department, and Allegan County Search and Rescue. Each representative offered remarks about the importance of partnering to support public safety services.