Bragg Gaming Group Inc (BRAG) ニュース

Bragg is still going.

Haven’t posted here in a long time. Glad to see this is still growing albeit slower than I expected under the old business model. The new business model seems to have kept it going.

Thanks for posting, but before jumping to conclusions, who is Full Color Games and what's their stake in this? What's their beef with BRAG regarding the Spin deal?

This was filed in Nov 2021, so why are we only seeing it now?

Definitely, something is fishy so let's figure it out.

I'll read PDF to better understand the problem.

Motion for Preliminary Injunction against Bragg Gaming's attempted acquisition of Spin Games has been filed with Nevada District Court.

Bragg gaming has been sued in the USA.

Public link is below. It's the filed legal brief that makes it seem pretty clear that the Spin sale to Bragg may never complete.

https://drive.google.com/file/d/1h-eUdtSn8e4Ew4p7yUORj3ug8PRFoexV/view

Clearly someone at Bragg's legal, compliance and securities team failed to do their due diligence. How do you miss a public lawsuit unless you deliberately buried it??? Did Spin get paid the $30 million yet? Something is very very wrong here.

Like the McDonald's CEO who just had his $105 million clawed back today for his fraud and failure to disclose material facts, this is going to be just as ugly and maybe worse. Could bankrupt the entire company based on their current stock spiral.

Did ANYONE see any disclosures or risk factors announcing this Motion for Injunctive Relief any of the SEDAR or SEC filings?

Looks like a shareholder lawsuit is in the forecast.

Looking at the dates ... it is incredibly fishy that Richard Carter, CEO resigns on November 16, 2021, without notice, without explanation 7 days after he issues this glowing quarterly report saying Bragg was on top of the world, and just 6 days before this injunctive relief is filed November 22, 2021 that looks like it is likely to prevail and stop the Spin sale.

Bragg stock is down nearly 80% since February. What does Richard Carter know that the public does not? The founders of Bragg and all their related entities just sued for racketeering, torts, defamation and more in the Nevada case. Eyes wide shut here.

Regarding 45 minute conference call: again, outstanding, right to this last question:
Operator

44:45 [Operator Instructions] Your next question comes from the line of Michael Shelton with FRC.

Michael Shelton

44:51 Good morning, guys. I was wondering if you can talk a little bit about the sports betting opportunity that you may be seeing in the U. S. And how you think about that from a long term vision standpoint?

Richard Carter

45:02 Good morning to you. To be honest with you, we're not really focused on sports betting, especially from the North American perspective. There are lots of other people that have a product offering, which is obviously a lot better than us. So it's just not something that we've focused on. We think the bigger opportunities is on the online casino vertical, and that's where we're focused on that.

Listening to conference call. Outstanding: CEP Richard Carter seems to be the real deal:

https://seekingalpha.com/article/4466966-bragg-gaming-group-inc-brag-ceo-richard-carter-on-q3-2021-results-earnings-call-transcript

One example of this is this paragraph, at 3 min 56 seconds. And don't be confused that the dumb-bot writes out numbers, so the text reads like this:
03:56: We have raised our twenty twenty one full year revenue guidance to a range of fifty five million EUR to fifty six million EUR and our adjusted EBITDA outlook to between six point six million EUR and six point eight million EUR. While also raising our twenty twenty two revenue outlook to a range of fifty nine million EUR to sixty one million EUR on our twenty twenty two adjusted EBITDA outlook to between six million EUR and seven million EUR. These results and our forward expectations represent strong performance and underlying growth in our non-German market.

Listening to conference call. Outstanding: CEP Richard Carter seems to be the real deal:

https://seekingalpha.com/article/4466966-bragg-gaming-group-inc-brag-ceo-richard-carter-on-q3-2021-results-earnings-call-transcript

One example of this is this paragraph, at 3 min 56 seconds. And don't be confused that the dumb-bot writes out numbers, so the text reads like this:
03:56: We have raised our twenty twenty one full year revenue guidance to a range of fifty five million EUR to fifty six million EUR and our adjusted EBITDA outlook to between six point six million EUR and six point eight million EUR. While also raising our twenty twenty two revenue outlook to a range of fifty nine million EUR to sixty one million EUR on our twenty twenty two adjusted EBITDA outlook to between six million EUR and seven million EUR. These results and our forward expectations represent strong performance and underlying growth in our non-German market.

Forget Brag now its NASDAQ The next one to uplift from OTC QB to NASDAQ is GAMING TECHNOLOGIES GMGT - See below !

Terrific interview with BRAG CEO Richard Carter, interviewed by Benzinga's personality, "Money Mitch."



Mitch relentlessly presses Carter on specifically how BRAG makes money. Every question drills further down into the business model.

Frankly, it's the best interview I've seen. The model is a tiered system involving information sharing as well as building gaming content, some of which they bring to the table and some has been gained through acquisitions.

Their footprint has been in Europe and now their future is building markets in USA as well as further expansion throughout Europe. Carter is impressive.

Spin Games Awarded State of Connecticut Online Gaming Service Provider License

Source: GlobeNewswire Inc.

Spin Games LLC, a North American leader in Remote Gaming Server (RGS) technology and interactive content, announced today that the State of Connecticut Department of Consumer Protection has granted the Company an Online Gaming Service Provider license pursuant to Connecticut General Statutes Public Act 21-23. This license enables Spin, upon receiving approvals for complying with the state’s technical standards, to deploy its ROC™ Remote Gaming Server platform and its online content via State-approved online gaming operators when they go live later this year. Connecticut received final approval from the U.S. Bureau of Indian Affairs to the revisions it made to the current gaming compacts between the State, the Mashantucket Pequot Tribe and the Mohegan Tribe earlier this month, and Connecticut Governor Ned Lamont anticipates that online gaming will be available as early as October.
“We are pleased to announce that we’ve received a Connecticut Online Gaming Service Provider license, enabling us to support North America’s newest soon-to-launch i-Gaming market,” commented Kent Young, Spin Games’ Chief Executive Officer and Chairman. “This key regulatory approval confirms the ongoing strength of our Company’s online gaming products and adds to our growing list of licensed jurisdictions including New Jersey, Pennsylvania, and British Columbia, and our provisional license in Michigan. We look forward to being part of Connecticut’s expansion into online gaming and are excited to be going live in the near future.”
ABOUT SPIN GAMES
A leader in Remote Gaming Server technology and interactive content, Spin Games specializes in designing and developing world-class gaming content and best-in-class interactive technologies for regulated B2B social and real money gaming markets. Produced in HTML5 format and compatible across desktop and multiple mobile applications, the Spin content portfolio includes a versatile range of proprietary and third-party titles, each featuring a unique and engaging theme enhanced with stellar graphics, sounds and features.
Founded in Reno, Nevada in 2012, Spin Games has content and RGS licensing agreements with numerous top-tier gaming content providers including Konami Gaming, Everi and Incredible Technologies. In May 2021, Spin Games agreed to be acquired by Bragg Gaming Group (TSX: BRAG, NASDAQ: BRAG), a global B2B gaming technology and content provider. The transaction is expected to close in the fourth quarter of 2021, subject to regulatory approval. Additional information about Spin Games is available online at www.spingames.net. Additional information about Bragg Gaming Group is available online at www.bragg.games.

NEXT BRAGG is for Sure GMGT ! (Gaming Technologies Inc OTC QB) this is making moves to NASDAQ. All the filings indicate so

BRGGF changed to BRAG. Moved to the Nasdaq from the OTC:

https://www.sec.gov/Archives/edgar/data/1867834/000110465921109247/tm2116372d9_ex99-1.htm

https://otce.finra.org/otce/dailyList?viewType=Deletions

Nasdaq provides visibility and, hopefully, buying interest. Are options available or will that take more time? Is Bragg seeking to sell to Penn, Ceasars or MGM, to give any of them more of a world footprint? Or does Bragg want to make it on their own?

$BRGGF: $DKNG just bought out $GNOG !!!!!!!


I think $BRGGF will be on watch now as a possible buyout next.


Definitely on watch here at $8



https://static1.squarespace.com/static/5b74f038c3c16ae2358b7324/t/609d19a980515222c1caf927/1620908458671/FS+Q1+2021+FINAL.pdf



GO $BRGGF

https://seekingalpha.com/pr/18316252-bragg-gaming-announces-q1-2021-results
May 13, 2021 8:01 AM ETBusiness WireBRAGG GAMING GROUP NEW (BRGGD)
First quarter revenue increases 62 per cent and Adjusted EBITDA increases by 234 per cent
2021 revenue guidance maintained at €47M
Accelerating rollout of proprietary in-house developed slot content

Thanks. Interesting the RS was posted today and then happens tomorrow. What's up with it being so fast?

This email came from Bragg today: I know I had sent over an email earlier this week stating that Haywood had initiated coverage on the Bragg Gaming Group (BRAG.TO, BRGGF).
I would also like bring your attention to the fact that Eight Capital has now initiated coverage on Bragg with a $3.25 PT.
Please see their full report: click here
Feel free to reach out to discuss further.
Thanks,
Tim Dawson
Investor Relations
Exchange Tower
130 King St W, Suite 1968, Toronto, ON
This article tells the story of Eight Capital's analyst coverage with a good link in center of article:
https://www.proactiveinvestors.com/companies/news/948229/bragg-gaming-draws-buy-recommendation-and-325-per-share-price-target-from-eight-capital-948229.html

Speculation: what are the odds Carter sets up Bragg to be bought by DKNG? We need a pool for the price. Pre-split: $10: less or more?

BRGGF: effective May 5,2021 a one for 10 reverse split:

https://otce.finra.org/otce/dailyList?viewType=Symbol%2FName%20Changes

Outstanding link. Thanks for sharing!

I got this from Bragg email today and the report is dated Apr 26, 2021.

https://clients.haywood.com/uploadfiles/secured_reports/BRAGApr262021.pdf?inf_contact_key=b36a3e4f3e0d7ccc3001341ed1e86bda680f8914173f9191b1c0223e68310bb1

Haywood, the group which made the report:
https://www.haywood.com/who-we-are

Totally get it. I have one I’ve jumped into when I exited about .35 cents ago. With a 15 for 1 RS that’ll but the share price about $23. Little perplexed about the coverage that was initiated for $3. If the $3 price target sticks that’d place it at $45, post split. That’d be nice if the revenue and customer counts support it. If it drops to $15 after the split I’ll be watching it closely to get back to what I was holding a couple months ago. Plus volume will be a LOT higher.

Sold my shares to get into another play, but watching from the sidelines until post RS if RS passes. Wanted to buy back in before, but one of my plays is taking a little longer until I can take profits.

yes, I agree, Nasdaq would be best. And while I don't like RS, I get that it doesn't change anything as the value of the company remains the same. I recently read an analyst putting a $3 price target on BRGGF, with worry about EU regulations which might bite into profits. But if they make Nasdaq, and if the RS happens, it would hopefully get the price above $5, triggering American companies and small cap funds to buy in because some have the $5 rule to purchase.

RS doesn't always work, but with BRAGGF making money, it seems unlikely a RS would lead to a backslide to $1 again. The story still shows growth and a solid business model. If true, it seems to me they will either make it on their own or become a takeover target. While my preference is they make it and grow a powerhouse, the intense competition of the space may require the larger to eat the smaller as a way toward growth.

Looked to me that it’s to be voted on. I received a packet that was your boiler plate, suggested to vote for a 1/15 rs, vote for board members etc. I’m sure there are majority holders who will vote for it. In the end it’ll reduce the float a ton and I look forward to the transparency of being on the Nasdaq so we will have easier access to the filings. I didn’t look forward the the continuing drift until it’s done. I’m hoping there are some helatious earnings they will report and it’s a rocket.

Is the RS a done deal or will it be the result of the vote?

Little surprised by this. Will be interesting to see how it does after the RS and uplist to Nasdaq. Out for now in the $1.70s but watching as we get closer to the vote and news. Long term think this is a home run.

It would be great if BRGGF went Nasdaq which has, I think, a $1 low limit. And if price does go below, there is a time period to get it back. RS is a tool to bring SP back up. The SP at close today is $1.74.

Are they worried? That worries me. I, for one, would be unhappy if they did a RS. They took a large payday months ago. Doing a RS split now would feel, to me, like a big F-U from them to us.

Why would SP go under $1? Unless the market craters, which could happen. If covid spikes across country again; that would do it. But I hope management isn't worried about this. If they are, they should be speaking about it, not just speaking about how great everything is. A RS is is bad news, would mean they are not sharing openly.

Not usually one to favor them but if it brings the share count and structure inline or to a reasonable level and is for uplisting to the NASDAQ while they improve the business, revenue and possible acquisition or be acquired I am all for it. If it’s a stock that just sucks and they do it to try and keep share price up while revenues or the business model fails, I run and hide from those.

How do you feel about r/s?

We announced today that the Company will host a meeting of shareholders on April 28, 2021. Bragg also announced today that the Company has filed an application to list its common shares on The Nasdaq Stock Market. Bragg is seeking authorization from shareholders to grant the board of directors the discretion to complete a share consolidation,?if necessary, in order to demonstrate compliance with the applicable Nasdaq initial listing price requirement.

The Circular seeks authorization for a range of ratios?up to?one (1) share for fifteen (15) shares. In the event a share consolidation is required to meet the applicable Nasdaq listing requirement, the Company will delay implementation of the consolidation until it believes that it has demonstrated to Nasdaq compliance with all other applicable requirements for initial listing. The consolidation would take effect a minimum of five business days prior to listing on Nasdaq.?

For full details: click here

Upon review, please let me know when we can discuss further.

Thanks,


Tim Dawson
Investor Relations
Exchange Tower
130 King St W, Suite 1968, Toronto, ON

https://www.globenewswire.com/news-release/2021/03/24/2198396/0/en/Richard-Carter-to-Ascend-to-the-Role-of-CEO-of-Bragg-Gaming.html

https://www.globenewswire.com/news-release/2021/03/24/2198396/0/en/Richard-Carter-to-Ascend-to-the-Role-of-CEO-of-Bragg-Gaming.html

You’re welcome! I’m excited for this too. Also I see that this is also happening on the same day as the ER:

https://mobile.twitter.com/bragg_gaming/status/1372619725189046281?prefetchtimestamp=1616117503522

Thanks for sharing! Very much looking forward to this one!!!

http://www.conferencecalltranscripts.org/summary/?id=175178&pr=true

Have to agree. Just need a good quarter and any news on good revenue then it’s off to the races. Been debating about adding another 10k down here!

I don't think people realize how undervalued this stock really is

News yesterday..no moderator here..
https://www.google.com/amp/s/seekingalpha.com/amp/news/3671312-bragg-gamings-subsidiary-inks-revenue-sharing-agreement-with-premier-gaming

News last week..huge
https://www.globenewswire.com/news-release/2021/03/04/2187036/0/en/Bragg-launches-Senator-Gaming-Online-in-Croatia-with-Complete-Turnkey-Solution.html

9:01a ET 3/8/2021 - PR Newswire
Innovative Deals Spur the Growth of New Sports Betting Solutions
Mentioned: BRGGF EIHDF GOOG IGT WYNN
Last year has shaped up to be crucial for the sports betting industry in the United States, as the U.S. gambling industry won big in the election. Three states had measures on the ballot to legalize sports betting: Maryland, Louisiana and South Dakota. All voted yes. Before the election, Tennessee became the 19th state where sports betting became effective. However, the law stipulates that 80% of the tax revenue raised from sports betting in Tennessee will go to help fund education; 15% will be allotted for local government infrastructure projects, and 5% will go towards improving mental health in the state, according to a report by the Martinsville Bulletin. Besides the election results, another factor most significant to the boost of the sports betting segment is attributed to the usage of smartphones, which have easy user interfaces and can be used at anytime and anywhere. According to a report by the Associated Press, companies like DraftKings are making serious strides in developing easy-to-use systems available to the public through partnerships with sports leagues. Bragg Gaming Group Inc. (OTC: BRGGF) (TSX-V: BRAG), Wynn Resorts, Limited (NASDAQ: WYNN), Alphabet Inc. (NASDAQ: GOOG), 888 Holdings plc. (OTC: EIHDF), International Game Technology PLC (NYSE: IGT)

Recently, the first college sports deal with a gambling company outside of Nevada was implemented. According to a report by Bloomberg Tax, the deal between the University of Colorado and PointsBet--an Australian based bookmaker launching its U.S. headquarters in Denver, is worth USD 1.625 Million, and includes tax-write offs. It is "the latest in an explosion of ad-deals between sportsbooks and teams or leagues, although it's the first collegiate pact of its kind," the report explains.

Bragg Gaming Group Inc. (OTCQX: BRGGF) (TSX-V: BRAG) announced yesterday that, "wholly-owned subsidiary ORYX Gaming is taking Croatian land-based operator Senator online with a complete turnkey solution.

The ORYX solution includes the ORYX iGaming Platform, ORYX Hub and a wide selection of ORYX RGS and third-party aggregated content. Senator, which operates 17 casinos in Croatia, will leverage ORYX's proprietary set of tools including player and payments management, CRM and promotions, bonuses and rewards, fraud, rules engine, compliance, analytics and reporting, and CMS.

Senator also now has full access to ORYX Hub, which hosts an extensive library of more than 10,000 casino games from more than 100 providers, including ORYX's proprietary RGS content and a variety of third-party suppliers such as NetEnt, Greentube, EGT and Play'n'Go. Senator will utilize ORYX's real time data and player engagement platforms, including tools such as Real Time campaign management, Leaderboards and Tournaments, Achievements, Jackpots and more.

Senator also operates casinos in several other territories, including Macedonia, Kenya, Mauritius, Central and South America. The online launch in Croatia marks the company's first venture away from its traditional land-based interests.

Following a recently signed deal to move into the Netherlands, ORYX's Croatian partnership heralds its latest expansion in Europe, where it is licensed by the Malta Gaming Authority (MGA) and the Romanian National Gambling Office (ONJN). Its content is certified or approved in 18 other major jurisdictions. Underpinning its commitment to information security, ORYX was recently awarded an ISO/IEC 27001 certificate.

'The regulated market in Croatia is enjoying great growth and we have had great success in this jurisdiction so far,' said Matevz Mazij, Managing Director of ORYX Gaming. 'Our turnkey solution provides our partners with everything they need for a successful casino, sportsbook and lottery operation. Senator is an established and respected local operator, so to have been chosen by them to facilitate their entry into the online space is an honour. Our high-quality products and diverse content will allow them to hit the ground running with a premium online offering.'

'As the popularity of online gaming goes from strength to strength in Croatia, we are excited about taking our knowledge and expertise to launch an online offering for our existing customer base as well as a completely new audience,' said Dimitar Deskoski, CEO of Senator."

Wynn Resorts, Limited (NASDAQ: WYNN) announced earlier this week that WynnBET, the premier casino and sports betting app from the global leader in luxury hospitality, Wynn Resorts, is now a proud partner of the Detroit Pistons. As part of the multi-year deal, several new co-branded marketing efforts will be introduced that enhance the fan experience, providing fresh ways for the devoted base to interact with their favorite team beyond just game day - both online and off. Anchoring the partnership is a new initiative called Wynn Wednesdays, a direct-to-consumer promotion that is exclusive to the WynnBET mobile app and website. Every Wednesday during the Pistons regular season, Wynn Wednesdays will feature rotating opportunities to enter and win one of several prizes, including team and player memorabilia, tickets, and unique VIP experiences.

Alphabet Inc. (NASDAQ: GOOG) Play Store policies will allow gambling and betting Android apps that use real money in 15 more countries, including the U.S. The Google Play Store indicated on March 1st that, "Subject to restrictions and compliance with all Google Play policies, we allow apps that enable or facilitate online gambling in the following countries in the table below as long as the Developer completes the application process for gambling apps being distributed on Play, is an approved governmental operator and/or is registered as a licensed operator with the appropriate governmental gambling authority in the specified country, and provides a valid operating license in the specified country for the type of online gambling product they want to offer."

888 Holdings plc. (OTC: EIHDF) reported last year its partnership with Darren Rovell and The Action Network, a sports analysis and media company that provides premium real-time odds and in-depth data and tools, to host a poker tournament for players in New Jersey. The tournament will consist of a series of four weekly games played against Darren Rovell on the 888Poker platform with a USD 10,000 grand prize finale on July 5th.

International Game Technology PLC (NYSE: IGT) announced last year that its leading PlaySports platform will power world-class retail sports betting at Maverick Gaming's three Colorado-based casinos as well as interactive sports betting throughout Colorado via Play Maverick Sports. Through a multi-year agreement with Maverick Gaming, IGT will provide its proven PlaySports turnkey solution including user-friendly self-service PlaySports kiosks, to Grand Z Casino and Johnny Z's Casino in Central City, Colo. and Z Casino in Black Hawk, Colo. The IGT PlaySports platform, complete with a fully integrated Player Account Management (PAM) solution, will also power Maverick Gaming's "Play Maverick Sports" mobile sports wagering app

9:00a ET 3/2/2021 - PR Newswire
Online Gambling Offerings Propagate as Regulations Ease
Mentioned: BRGGF DKNG
More and more states are beginning to launch online betting businesses. In addition to a more favorable legal infrastructure, public opinion has turned in favor of such services. Last year's election helped further reinforce the industry. Three states had measures on the ballot to legalize sports betting: Maryland, Louisiana, and South Dakota. All three voted yes. As the legal infrastructure became friendlier towards online gambling, many companies in the gambling industry began to offer additional betting options. In the United States, for example, there are several states that offer online casino gaming services, including New Jersey, Pennsylvania, West Virginia, and Delaware. Michigan had also just recently passed legislation which will allow it to launch similar services, Shared reports. To illustrate just how popular online sports betting is in states where the market can already operate, according to data from Odds.com, which was published by Forbes, Illinois was poised to generate upwards of USD 73 Million in taxable revenue if the estimates of a USD 488 Million annual market come to fruition. Bragg Gaming Group Inc. (OTC: BRGGF) (TSX-V: BRAG), Caesars Entertainment, Inc. (NASDAQ: CZR), DraftKings Inc. (NASDAQ: DKNG), Score Media and Gaming Inc. (NASDAQ: SCR) (TSX: SCR), FansUnite Entertainment Inc. (OTC: FUNFF) (CSE: FANS)

The most significant boost to the sports betting segment is attributed to the usage of smartphones, which allow bettors to bet at anytime and anywhere. Additionally, innovative technologies such as Blockchain, Internet of Things (IoT) and VR are changing the intricacies in many fields, including gambling in an online casino. Furthermore, eSports have also benefited from these developments. Just like any segment in the online entertainment industry, the number of viewers and direct participants is crucial for success. And, according to a report by Business Insider, eSports viewership is expected to grow at a 9% compound annual growth rate (CAGR) between 2019 and 2023, up from 454 Million in 2019 to 646 Million in 2023, per Insider Intelligence estimates. This segment also features gambling and betting features associated with it, thus resembling the online sports betting segment.

Bragg Gaming Group Inc. (OTCQX: BRGGF) (TSX-V: BRAG) announced last week that, "the Company has been named to the 2021 Venture 50, the TSX Venture Exchange's flagship annual program showcasing the top performing TSXV-listed companies from five industry sectors: Clean Technology and Life Sciences, Diversified Industries, Energy, Mining, and Technology.

Bragg's strong results in 2020 led to its inclusion in the list of top performers and also led to Bragg's January 27th graduation to the Toronto Stock Exchange. The 2021 Venture 50 winners were selected based on year-over-year performance across three equally-weighted criteria: market capitalization growth, share price appreciation and trading volume for the year ended December 31, 2020.

'We were extremely pleased with our performance over the past year and are honoured to be included within this cohort of successful high-growth companies,' said Adam Arviv, CEO of Bragg Gaming. 'We're continuing the momentum into 2021, with plans for significant global expansion.'"

I like and own Bragg, and have great hopes, but it is frustrating to watch US gaming companies continue shooting up while Bragg seems stuck to the bench. Not sure what the real problem is. Any of these big US or UK companies could buy them with pocket change. Maybe some behind-the-scene-games are being played to keep from having to offer what Bragg is worth?
How will Bragg compete with them?

Back above $2.00, you guys......

March is looking more normal already.......

$$ BRGGF $$

Say what ??

Nothing to BRAGG about today......lol.

But hey, next week eMarch beckons us to a new month, with less manipulation I betcha !!

Go BRGGF !!

Me too, Mr. B !!! March will be good to us, I betcha !!

Looking forward to next week. Get me outta February. Lol

Nice day, plus news about being named to the “2021 Venture 50”.......a annual program showcasing the top performing TSVX - listed companies from 5 industry sectors.

We rock.......

$$ BRGGF $$

Bounced right back up.......we are resilient if nothing else......lol.

Awesome buying Opp. Added 2k more!! Never thought we’d go below 2 again.

Great job........I really believe we’re only going up from here......way up.

More I look the more I find.

New Game: Bills C-13 and C-218 and the Legalization of Single-Event Sports Wagering in Canada
February 8, 2021
Kevin Bailie
Parliament appears primed to lift Canada’s longstanding restrictions on single-event sports wagering, opening the door to the emergence of regulated sports betting platforms in the Canadian market. Two bills with this purpose – one sponsored by the Government and another by the Official Opposition – are currently under consideration in the House of Commons. While the proposed Criminal Code amendments that would make this possible are a matter for the federal Parliament, any new sports betting marketplace would be implemented and regulated primarily at the provincial level.

Background

Limited forms of sports betting have been legal in Canada since the early 1990s, but single-game wagering has continued to be prohibited by Section 207(4)(b) of the Criminal Code. On November 26, 2020, however, the Minister of Justice introduced legislative amendments to the Criminal Code in the form of Bill C-13, which would, in effect, enable provinces to create a “lottery scheme” involving single-event sports wagering.[1] Bill C-13 is similar in substance to Bill C-218, a private member’s bill introduced by a Conservative MP in February 2020, which remains on the Parliamentary agenda (although there are certain differences that relate mainly to horse-racing).

These developments follow a similar trend in the United States. In May 2018, the U.S. Supreme Court overturned the Professional and Amateur Sports Protection Act providing each state the autonomy to regulate sports wagering within their borders. Since the decision, eighteen states have passed legislation to legalize some form of sports wagering, with others likely to follow.[2]

Economic Potential

The longstanding reluctance to legalize single-event wagering in Canada – reflected in the failure of previous bills of this type in recent years – may have been softened by the revenue needs of Canada’s governments during the pandemic. For example, in the Ontario Budget of November 5, 2020, the government referred to gambling regulation as part of its plan to move the province out of the COVID-19 Pandemic.[3] This statement also indicated that Ontario plans to open the “iGaming” market to the private sector, with the oversight of the Alcohol Commission of Ontario, rather than remaining reliant on a single-operator system under the Ontario Lottery and Gaming Corporation. The Atlantic Lottery Corporation[4] and British Columbia Lottery Corporation[5] have also commented on the feasibility of the potential introduction of single-event wagering in the jurisdictions they represent.

The Canadian Gaming Association (the “CGA”) estimates that Canadians spend upwards of $14 billion every year on illegal or offshore single-event sports wagering. This is compared to the approximately $500 million wagered through provincial sports lotteries, such as Ontario’s “Pro-Line”.[6] Furthermore, the CGA estimates that Ontario’s iGaming market, presently valued at $547 million annually, would immediately balloon to roughly $1.47 billion upon legalization.[7]

Canadian jurisdictions are likely looking to replicate the experiences of U.S. states that have passed sports-wagering legislation. For example, in Pennsylvania a limited number of licenses are offered to private sector licensees who must agree to a one-time fee of $10 million and having their wagering-related revenue taxed at a rate of 36%.[8] Under this arrangement, Pennsylvania has seen over $45 billion dollars in total “handle” (the aggregate amount wagered), directly generating just under $98 million in tax revenue for the state.[9]

Next Steps

Bill C-13 has yet to be given a date for its second reading. However, Bill C-218 is scheduled to receive second reading on February 17, 2021. It appears that each of the three major opposition parties supports Bill C-218, which may provide it with enough support to proceed to the Justice Committee and thereafter to third reading. It would then have to undergo a similar process in the Senate before becoming law. However, regardless of which of the two Bills ultimately prevails, with growing support and increasing traction within Parliament the legalization of single-event sports wagering appears to be more a question of when rather than if.

We will continue to monitor and publish developments related to Bills C-13 and C-218, and the legalization of single-event sports wagering.

The author would like to acknowledge the support and assistance of William Quaglietta, articling student at law.

[1] “Federal Government introduces legislation to decriminalize single event sport betting in Canada, support jobs” (Department of Justice Canada, November 26, 2020).

[2] Rodenberg, Ryan, “United States of sports betting” (ESPN, November 3, 2020).

[3] “Ontario’s Action Plan, 2020 Ontario Budget” (Queen’s Printer for Ontario, 2020).

[4] Campbell, Kerry, “Atlantic Lotto ready to score should Ottawa allow single-event sports betting” (CBC News, December 11, 2020).

[5] Fletcher, Robert, “BCLC urges government to pass single-even betting amendment” (iGB North America, February 2, 2021).

[6] Mergulhao, Sandra, “Online gambling firms expect Ontario to lift key operator ban” (Bloomberg News, November 2, 2020).

[7] “Canadian Gaming Association urges quick action on legislation for sports betting” (Canadian Gaming Association, November 3, 2020).

Excellent !!

Pretty good day of trading today, considering yesterday’s increase.

Let’s keep rocking on......

$$ BRGGF $$