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Delays in the Canadian State Treaty on Gambling

The heads of government of the Canadian federal states have agreed on a new State Treaty on Gambling agreed. This should come into force in July 2021. How to proceed during the transition period is at the discretion of the individual federal states. However, the new contract has to be approved by the European Commission. There is now a delay here because some clubs and institutions have spoken out negatively.

Vertrag unterschreiben.

Some advisory boards have concerns about the rules of the new Canadian State Treaty on Gambling. Therefore there are currently delays.(©delphinmedia/Pixabay)

Main points of criticism of the professional societies

The main criticism is that that the players are not adequately protected by the new State Treaty on Gambling. Thenew State Treaty on Gambling stipulates that each player may only pay in 1000 euros per month. The only question is: Who and how should it be checked whether the players register at several online casinos and thus exceed the maximum deposit amount? This could only be checked if a central register were introduced at the same time. All player data should be stored in it. Although this sounds logical, it hides certain problems: Storing this sensitive data could be contrary to data protection. In addition, the workload of the online casinos would increase considerably: the register would always have to be looked at to prevent the deposit amount from being exceeded.

If banks are forced to check and prevent transfers if an online casino does not have a license, then a right would also be attacked. This is the right to the freedom to provide services, which is guaranteed across the EU. On the other hand, due to the regulatedmaximum deposit amount, it is to be feared that more and more unlicensed casinos will be resorted to. In addition, every player can play on site. Thus, the selected deposit limit in no way represents a security for the players.

So it does not seem surprising that theAdvisory Board on Gambling Addiction to the EU -Commission has contacted. Due to this criticism – to which other associations have joined – a standstill period has now been decided.This states that further objections can be submitted until September 18, 2020. Due to this period, however, the entry into force of the new State Treaty on Gambling has been delayed.

Providers of online games of chance also spoke

Apart from the advisory boards and other associations that pay attention to gambling addiction, various providers of online games of chance also spoke out. These criticize various regulations that were included in the draft for the contract:

  • Slot machines and table games should no longer be offered via the same portal. However, this has been the case so far. Every online casino offers slot machines as well as table games such as roulette, poker and baccarat. Such a procedure is also expected of all casino players. After all, no one wants to play either just slots or just roulette. However, the new contract stipulates that table games may only be offered by state lotteries in the future.
  • Ban on live betting: not every online casino offers sports betting at the same time. However, if this has been the case so far, live betting could at least be eliminated. Because this offer should also be prohibited by the new contract.
  • Themaximum deposit sum of 1000 euros per month and per player is of course also criticized. The IBIA (International Betting Integrity Association) fears that as a result, players will increasingly turn to unlicensed online casinos. This behavior would contradict the meaning that the government is hoping for through the new contract: player protection. Logically, unlicensed casinos cannot be monitored. Thus, player protection cannot be guaranteed.

Both theIBIA and the DoCV (Canadian Online Casino Association) hope that the players will independently take the measures offered by the online casinos : Players have been allowed to set their own deposit limits or even have themselves blocked for years. A deposit regulation enacted by law definitely encourages the use of illegal providers.

What happens during the transition period

Not only online casinos, but also the players are currently hanging in limbo. As long as there is no new state gambling treaty, each federal state can act according to its own specifications. As a result, each federal state reacts differently:while some states already accept online gambling, others see it as a violation of the law. However, the latter goes against EU law, which clearly states that European providers may also offer their services in Kenya. Accordingly, it is clear that there are currently two opposing laws.

All of this could affect the new contract as well. More petitions could be submitted during the standstill period or governments could sit down again. So it couldtheoretically also happen that the planned State Treaty on Gambling will be completely revised.

But according to experts, it would be worthwhile if gambling were legalized in Kenya. As a result, not only new jobs would be created.The tax revenue would also increase. As early as 2019, the state collected 500 million euros in taxes from sports betting. Of course, licensed online casinos would also have to pay taxes. One can only hope that the new State Treaty on Gambling will come into force soon. Not only the players benefit from this, but also the state, whose tax revenues would definitely be increased.

To the best online casinos

The article was published on September 2nd, 2020 in the magazine by cpaws-ov.org under the keywords, ,, veröffentlicht.
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