Saturday, February 24, 2007

When it comes to betting on sports, it seems the gambling industry has left
no stone unturned. There are government-sanctioned Sport Select kiosks in
virtually every corner store, casinos in every corner of the city and
chances to bet on just about any horse race in the world at Edmonton
Northlands. There are illegal book-makers more than willing to cater to the
sports-betting junkie's whims. And then, of course, there's the Internet,
where bettors can wager on any sport at any time. So with this kind of
saturation, what more -- or less -- can the future bring? The opinions of
gambling researchers, industry insiders and government officials vary,
although most believe that sorting out issues related to Internet wagering
holds the key to determining which direction sports gambling ultimately
heads. Fuelled by the online-poker craze and betting on sports events,
Internet gambling sites have seen revenues explode to an estimated $15
billion in the past year alone. Operating such a site in Canada (and the
United States) is illegal, but online proprietors get around that by setting
up shop off North American soil in places like Antigua and Costa Rica. Even
though it's unclear whether it's also illegal for Canadians to bet on those
sites, thousands do -- so far without any repercussions. With all that money
heading to off-shore operators, some analysts are beginning to wonder if
Canadian governments should consider legalizing Internet gambling and get a
piece of the billions in profits. "(Internet gambling) has reached the point
where it wants to be regulated," says Michael Lipton, a Montreal lawyer and
founding member of the International Masters of Gaming Law. "I don't have a
problem with government running it if it means they can get a huge amount of
revenue. But if they are going to do it, let's do it and not pussyfoot
around." The United Kingdom, for one, has decided to do just that. Starting
on Sept. 1, online gambling will be regulated and taxed by governments
there. The United States has taken the opposite approach, trying to stamp
out online betting. Last October, the Unlawful Internet Gambling Enforcement
Act made it illegal for banks and credit card companies to settle payments
with Internet gaming sites. While not necessarily criminalizing gaming, U.S.
legislators are effectively trying to abolish Internet gambling by stopping
the flow of money.

Canada has another unique quandary. Although operating online gambling sites
here is supposed to be illegal, the Kahnawake Mohawk reserve in Quebec has
been hosting dozens of betting sites for a decade, claiming that Canadian
laws don't apply to them. They insist that they maintain sovereign authority
over Internet gambling on their territory, arguing gambling is part of their
ancient rites and traditions.

Now the Alexander First Nation near Morinville plans to start a similar
online-hosting scheme, forcing the Alberta government to make a decision
about the future of online gambling in this province. As such, the Alberta
Gaming and Liquor Commission has commissioned a poll to determine what
Albertans think of the issue.