Lotteries Assemble! How a coalition is tackling illegal operators

How a coalition is tackling illegal operators

BY CHARLIE HORNER

Steve Lautischer, EVP Business Development at Alberta Gaming and Liquor Corporation, speaks to CGB about the Lotteries Coalition's battle to eliminate illegal online gambling and why the body is seeking federal intervention on the issue.

“One of the key derivatives of that for the rest of Canada was the onslaught of advertising across the entire nation”

In early August, a coalition of provincial lottery corps announced they would band together to overcome the issue of illegal offshore operators advertising to Canadian gamblers.

British Columbia Lottery Corporation, Alberta Gaming and Liquor Commission, the Manitoba Liquor & Lotteries Corporation, Loto-Québec and Atlantic Lottery have all come together to take action against those operating in their respective jurisdictions illegally.

Lautischer explained that the coalition united on the back of two key factors: the legalization of single event wagers in 2021 and the opening of Ontario’s commercial igaming market.

These two events, he explained, have generated an 'onslaught' of advertising in Canada that risks causing harm to players nationwide.

Lautischer remarked: “One of the key derivatives of that for the rest of Canada was the onslaught of advertising across the entire nation. In Canada, the Criminal Code is explicit as to who has the lawful right to take bets in the country.

“Fundamentally, the rest of Canada's provincial lottery corporations came together because we have a common concern about the proliferation of these advertisements and the taking of illegal bets across the country.”

Illegal gambling, AGLC’s development lead outlined, poses a double-edged sword threat to harm Canadians. He noted that the black market can not only damage players who have little-tono security protection but also removes funds from the provincial funds that legal gaming helps to support.

“Key deliverables of the provincial lottery organizations across Canada is that all we'll call the proceeds from gambling in our provinces are returned to the people of the province through different programs and services,” Lautischer added.

“We are very concerned for our players as well because the illegal market or the unregulated market that is not been designated to sell into many of our provinces don't have the same safeguards or duty of care for the people that participate in their sites that that provincial organizations absolutely hold ourselves to a very high standard on.”

Whilst no specific event or threat directly forced the Lotteries Coalition to mobilize its proverbial troops, the beginning of the NFL season and other North American sports can be a catalyst for large swathes of advertising from black market incumbents.

Yet, the coalition has a trick up its sleeve, with each lottery corporation launching individual advertising campaigns to counter the marketing from illegal operators to make players aware of the dangers of illegal operators and promote their own regulated platforms. AGLC parodied three classic horror films in its television campaign.

Lautischer explained: “As a coalition, we plan to continue to do similar types of activities, but each of the individual provinces will also do their own regional tactics to make people aware.

“We (AGLC) launched a series of ads which really are bringing Albertans to the awareness of being careful where you're sharing your information, and who you who you're participating with.”

The coalition is seeking federal intervention to enforce the law on those who are infringing on the provincial lotteries, which often maintain a monopoly position in their respective jurisdictions.

It is essential, Lautischer told CGB, that federal intervention must review how the illegal operators have been allowed to gain so much traction and take action to counter this.

“When it comes to advertising, we're looking to certain federal organizations that will call it puts standards and parameters around what is fair and legitimate advertising to be done,” he noted.

“And we're looking for them to take a harder look at how the illegal operators have been able to proliferate the airwaves.”

Asked why Canada has been the target of the proliferation of illegal online operators, AGLC’s EVP detailed that Canadians are major sports fans and that since the opening of Ontario, outsiders have witnessed a successful gambling industry.

In summarizing, he said that “when you see success you see opportunity. Everybody's going to try and take their piece of that piece of that pie”.

Moving forward, the Lotteries Coalition is aiming to present an unrelenting, persistent campaign as it continues to keep Canadian players safe.

Citing a ‘long haul’ approach to defeating the black market, Lautischer concluded: “You'll hear a continual message from the coalition itself and from the individual provincial entities as well. I think it's a marathon, not a sprint. I think we were in it for the long haul. And we truly are in it for the long haul.”

“Maybe I shouldn't be that unrealistic to say they'll just vaporize but of course, the goal would be to make it unpalatable for them to reside in the country.”