Canadian Lottery Coalition Takes Legal Action to Recoup Millions in Illegal Offshore Gambling
The decision by the Manitoba Liquor & Lotteries (MBLL) to file an injunction on behalf of the Canadian Lottery Coalition (CLC) against the Caribbean-based operator behind the illegal gambling site Bodog is a sign of things to come for other lottery corporations across the country as well.
Hundreds of Millions Lost to Offshore Gambling
That’s according to CLC Executive Director Will Hill in a conversation with Casino.org. CLC represents a collaboration of the Atlantic Lottery Corporation, British Columbia Lottery Corporation, Loto Quebec, MBLL, and Lotteries & Gaming Saskatchewan.
Casino.org interviewed Hill over the weekend about the legal strategy in Manitoba. The injunction with the Manitoba Court of King’s Bench was filed against Il Nido Ltd., Bodog’s operator, and Sanctum IP Holdings Ltd., which owns the Canadian trademarks. The action seeks to ban Bodog from doing business and advertising its services in the province. In Manitoba, PlayNow.com is the only legal multiproduct gaming website.
The legal effort is the first of its kind for CLC on behalf of the provincial lottery corporations it represents. According to CBC reporting, the court application argues Bodog promotes its platforms via misleading statements, presenting itself as lawful and safe, which it isn’t. Twice CLC has asked Bodog to take its site down but it has refused.
“Those five provincial lottery corporations are designed to return 100% of annual net revenue to provincial priorities, covering areas like education, healthcare, First Nations, and community service and programs,” Hill said.
Line in the Sand
Significant revenue that would otherwise flow to PlayNow.com is being diverted to Bodog. The provincial lottery corporations are vested by the Canadian criminal code and through provincial gaming legislation to operate certain gaming activities, including online gaming, within their home province. There are no licensed iGaming competitors in those provinces, unlike in Ontario, which has had an open market since April 2022.
“They are forced on a daily basis to content with illegal online gambling operators, their unregulated websites, and in some instances, misleading advertising,” Hill said.
March Court date
The lottery corporations came together to curtail illegal online gambling in Canada and that’s what is behind the Manitoba initiative. A court date is set for March 5.
It’s our intent to meet that goal to curtail illegal gambling through all available means,” Hill said. “This is just one of them.”
CLC has undertaken market size estimates using a global firm of gambling intelligence to try to best understand the impacts of money going offshore in Canada in each of the last two years.
“It’s significant, in the hundreds of millions,” Hill said. “But what’s more concerning was that in the period of 2019 to 2023, there was a double-digit increase in the compound annual growth rate.”
It‘s a big problem that has been getting bigger, prompting these organizations to band together like they never have before.
https://www.casino.org/news/clc-court-illegal-offshore-gambling-bodog/