TORONTO, March 29, 2012 (GLOBE NEWSWIRE) -- Ontario has a debt problem that is proving hard to fix. The Drummond Report, issued in February, contained 362 recommendations for what the province should do to get its fiscal house in order, including a number of gaming suggestions. Tuesday's budget demonstrates a new direction for the Liberal government as it attempts to balance Ontario's budget by heralding an era of austerity.
Concessions will be sought from many sectors as the province settles in for a long-term struggle to eliminate its deficit. But as the province is busy cutting and freezing, where are the revenue generating opportunities?
The Ontario Lottery and Gaming Corporation (OLG) also recently announced a series of changes aimed to modernize its operations and provide much-needed revenue to the province. Having acknowledged that its current model is outdated, the OLG is turning to the private sector to play an increased role by assuming the bulk of the risk (and the employees) in exchange for running casinos, while the OLG focuses on regulatory oversight and policy control.
The Interactive Gaming Council (IGC) applauds this direction, as it supports the backbone of a regulatory model for online gaming. The OLG has publicly declared its intentions to enter this space in 2013, and we hope that the corporation's preferred model for its existing operations will also be applied to any new offerings and will not follow the current model of picking only one supplier.
Another option for the OLG would be to regulate the Internet activity already occurring in Ontario, as there are several reasons why a regulated model makes good policy sense for the government of Ontario: it will provide legal clarity for Canadian players and online gaming companies with Canadian customers; harmonize standards with other leading jurisdictions to enhance consumer protection; and provide additional tax revenue opportunities for governments in these challenging economic times.
Online gaming is an activity that people are enjoying in great numbers. The IGC is not advocating in favour of an expansion of gaming on the Internet – that ship has sailed, so to speak, as it is an activity that is already being undertaken here in Canada, as it is around the world. Governments in other jurisdictions have embraced this market and have established successful open market regulatory regimes.
Just last week Britain announced it is putting together plans to alter the tax policy for online gambling and make it worthwhile for companies to do business in England (which would also provide needed jobs). Taxes would be paid at the point of consumption - or where the bettor is - rather than the point of supply, where the operator is. A company based offshore would still be required to pay taxes to England, even if its operations are in in the Isle of Man. By changing the tax benefits, more incentive will be provided to open up operations in Britain and hire local workers.
The IGC would like to see Canadians benefit from this approach as well, starting with Ontario.
About the IGC
The Interactive Gaming Council is a non-profit trade association that serves as a collective voice for the interactive gaming industry. The IGC champions initiatives that address the multi-various challenges and opportunities facing the global Internet gambling industry, in order to ensure an environment of fair and responsible gambling.
The Interactive Gaming Council logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=12222
