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A century ago, most forms of gambling were unlawful in Canada, and considered vices (Campbell & Smith, 1998). But the regulatory framework has greatly evolved since 1892, when the Criminal Code first declared a complete ban on gambling activities (Azmier, Jepson & Patton, 1999). Over the years, periodic amendments were made to the Criminal Code that slowly eroded this blanket ban. Minor adjustments between 1892 and 1969 facilitated the gradual expansion of gambling activities (Campbell & Smith, 1998): charitable gambling was permitted in 1900, pari-mutuel betting on horse racing in 1910, and gambling events at agricultural fairs and exhibitions in 1925 (Azmier et al., 1999). In 1969, the Criminal Code was substantially amended to allow federal and provincial governments to enter the field of gambling (Azmier et al., 1999). Provincial governments established their own activities, which considerably altered the gambling landscape. At the same time, the federal government created Lotto Canada and the Sports Pool Corporation â primarily to fund the upcoming Summer Olympics, held in Montreal in 1976 (Osborne & Campbell, 1988).
But in 1979, facing strong opposition from the provincial governments, the conservative federal government agreed to cease Lotto Canada activities; and it formally transferred all such powers to provincial legislatures. This agreement took several years to be enforced: it was rejected in 1980 by the newly elected liberal government. Only in 1985, when a conservative government was again in power, was the arrangement formalised (Osborne & Campbell, 1988). According to Osborne and Campbell, Parliament âdivested the federal government of any capacity to conduct lotteriesâ, leaving the provinces with âsole jurisdiction over lotteries and other specific gaming operationsâ (Osborne & Campbell, 1988: p. 24). In exchange for the federal government relinquishing its responsibilities for gaming regulations, operations and revenues, the provincial governments agreed to contribute $100 million to the Calgary Winter Olympics in 1988 (Azmier et al., 1999).
These changes reflect four major trends in gambling policies in Canada. First came a transition in the official view of gambling, from criminalisation to legalisation. What followed was a pattern of lesser federal involvement, and greater provincial authority. An increase in new gambling products came next; and finally an expansion of gambling activities, driven by interest groups (Campbell & Smith, 2003). The most important of these changes was the 1985 amendment of the Criminal Code, which permitted the provinces to conduct and manage gaming. This opened the field not only to regular lotteries and other traditional activities, but also to video lottery terminals and forms of electronic gambling â including, more recently, internet gambling.
What explains these trends? The main reasons are economic. Gambling in Canada was advocated not so much for its own sake â as a âharmless and worthwhile recreationâ â than as an activity that successfully â[serves] a greater good, such as generating government revenues, funding charity, [and] creating jobsâ (Campbell & Smith, 1998: p. 24). For instance, confronted with the expenses of funding the 1967 Worldâs Fair and the 1976 Olympic Games in Montreal, the QuĂ©bec government saw in gambling a revenue opportunity to ease those burdens (Azmier et al., 1999). In the 1990s other provincial governments also saw gambling as an easy and painless way to extract new revenues, as they faced both an economic recession and a federal downloading of fiscal responsibilities (Black, 1996). The provinces also perceived Lotto Canada as inefficient (Osborne, 1989), and felt that the federal government was draining revenues that should properly have been allocated to them. These tensions were resolved by the 1985 Criminal Code amendments, and th...
