First Legal Internet Gambling site in Canada

FYI. As appeared on Canada.com quoted from the Financial Post:

Woodbine launches Web betting
Grey area not officially sanctioned in Canada

Kevin Restivo
Financial Post

January 14, 2004

Woodbine Entertainment Group, a Toronto-based horse racing track operator, said yesterday it has launched the first legal Internet gambling site in Canada.

The Web-based wagering system — HBIBET.com — will accept bets on thoroughbred and standardbred racing at its racetracks in Southern Ontario and partner tracks in the rest of Canada, and possibly Hong Kong and Australia.

Andrew Macdonald, Woodbine’s director of business development, says the company expects to process more than $15-million in bets through the online gambling service this year.

Internet gambling is a grey area in Canada. Neither the federal nor provincial governments have officially sanctioned online betting. And moves to legalize online gambling in the United States have been strictly opposed.

However, Woodbine Entertainment, formerly known as the Ontario Jockey Club, said it received the necessary regulatory approval to open a Web gambling site from the Canadian Pari Mutuel Agency, a group that falls under the jurisdiction of Agriculture Canada, a federal government department.

Mr. Macdonald says the online betting system is legal under Canadian government regulations as the CPMA has full jurisdiction over those that bet using any form of “telecommunication” device.

A call to the CPMA was not immediately returned yesterday.

Patrick Charette, a spokesman with the Department of Justice in Ottawa, said under the Canadian Criminal Code, only a province or territory may operate a lottery scheme that is run over a computer network. Any other form of Internet gambling is illegal under Section 206 of the Canadian Criminal Code.

Mr. Charette said he is not aware of any exceptions or legislation that would change his opinion.

Joe Vecsi, an Ontario Lottery and Gaming Corp. spokesman, agreed, saying that “the province has not approved any form of Internet gambling in Ontario nor is the government pursuing any form of Internet gambling legislation.”

Critics say Internet gambling should be banned as it is highly addictive. Others say Internet gambling is an unstoppable force that Canada should embrace.

Canadian companies have become a major force in the international gambling business, providing software for companies in other countries or running casinos for licensees in offshore havens. Internet gambling operations are generally run in Antigua and other small offshore countries.