As Will Hill, executive director of the Canadian Lottery Coalition, said at the Canadian Gaming Summit, this year’s summit has a clear Canadian industry perspective, not just a focus on Ontario.

That was on display during the well-attended panel Tuesday morning at the Metro Toronto Convention Centre of provincial crown corporation heads that Hill was moderating, which included Pat Davis, president & CEO, BCLC; Jean-Francois Bergeron, president & CEO, Loto-Québec; and Patrick Daigle, president & CEO, Atlantic Lottery.

With the open, competitive Ontario market having just passed the two-year mark, the question for a lot of people in the industry is what Canadian provinces will follow next with an Ontario-like model, or will they just stay with their crown corporation monopolies.

At this week’s summit, there is industry buzz around the expected launch of an Ontario-style model in Alberta, with the western province the focus of several panel discussions at this week’s summit.

So, some in attendance for the Hill-led discussion were wondering if those regions also would share any news nuggets about the respective futures of their markets.

Alas, that wasn’t in the cards. A big focus of the discussion was on their social responsibility, balancing commercial objectives, profits/dividends going back to the respective provinces to benefit community programs, a commitment to responsible gaming, how lottery might not be sexy but it’s still a very strong foundation from which to build a business and how all three crown corporations have attained World Lottery Association Level 4 certifications.

Large jackpot fatigue for the younger-than-35 age bracket is a challenge, though they are more interested in the instant or scratch lottery business, Daigle said. Davis said it’s up the industry to use igaming to augment land-based gambling. Digital gaming is not a competitor, he added, and it’s up to each crown corporation to create more robust experiences that resonate with players. And the younger generation is expecting entertainment.

“The pandemic did really drive the digital revolution, not just for the gambling industry, but for consumer industries broadly,” Davis said. “Something like Uber Eats and Skip the Dishes were good solid businesses but have now really exploded, and a ton of traditional brick-and-mortar retailers also have pivoted to create those digital channels. We saw a massive growth in our digital channels, doubling over that period. Digital allows you to create a new and different experience for players.”

Out of the three, the Quebec situation is the most interesting at this point, if the topic is about creating a new regulatory regime. The Quebec Online Gaming Coalition, comprised of Betway, Bet99, DraftKings, Entain, Flutter, Games Global and Rush Street Interactive, partnering with Apricot Investments, is pushing to work with the Quebec government and local stakeholders to develop a new regulatory framework for the province that would compete with the Loto-Québec igaming monopoly.

For Bergeron, though, he said his job is not to get into that. It’s to run Loto-Québec in the most efficient way possible.

“I want to be really honest – competition is good, actually really good, because it forces us to be better,” he said. “Competitors are a great source of inspiration. And we find great operators out there. And we even use some of them as a go-to model.

“As crown corporation operators, we have a clearly defined mandate. It’s certainly not up to us to defend that model, but to operate it successfully within the current law and legislation and rules. The Criminal Code is clear. It’s up to the provincial governments to conduct and manage gaming in Canada. This is clear. There is no grey zone, and Quebec, the government of Quebec has decided to entrust Loto-Québec with that mandate. In Quebec, if it’s not Loto-Québec, it’s not legal.

“In Ontario, you decided to entrust that responsibility to private operators. That’s fine. That is their right and their own choice and we respect that. But it doesn’t give the rights to these operators to operate elsewhere in Canada with legality. I honestly respect everyone who is advocating for an open market. I wish good luck to these operators. But they should respect the Criminal Code.”

Illegal operators don’t have the same accountability around social controls or responsible gaming, financial controls and a lack of reporting and accountability, where people in the industry don’t know where the money is coming from, going into the illegal sites, and where it’s going when it leaves, leading to a risk of money laundering and fraud and no proceeds go back to the jurisdiction.

“There’s no silver bullet here,” Davis said. “There’s no easy answer. However, what I will say is anyone who’s operating across the country here, it is a shared challenge. So illegal operators competing on an unlevel playing field is a challenge that we all share, whether it’s myself in B.C. or whether it’s a private operator, licensed and registered here in Ontario.

“This is why we formed the Canadian Lottery Coalition, to try and collectively advocate in the areas that will make sense. What we’ve seen globally is that no one has found the right answer to eradicate this. There are tools and ways that we can blunt (illegal operator) access and their operations in relation to our markets. And that’s where we collectively are working in lockstep. Because at the end of the day, whether you’re a crown corporation or whether you’re a private operator in an open market like Ontario, enhanced regulation and enforcement benefits all of us. It creates a level playing field no matter what the regulatory framework is that you operate in.

“So whether it’s around limiting the confusion around advertising, being able to take some of that out of the market, or whether it’s around trying to enforce some of these financial controls to limit money laundering, the illicit movement of funds, or whether it’s around trying to raise the bar and protect players and give them the right tools so that they are able to gamble in a safe and healthy way … it’s a road fraught with many challenges.”

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