Saskatchewan Looks Into Legalizing Online Gambling

April 11, 2011 | News Category: Gaming Law

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Although there have been some Canadian provinces that have turned away from online gambling, there are others that have embraced it. Saskatchewan looks as if it may be the next in line to legalize and regulate online gambling in their province.

Saskatchewan already has publicly owned casinos, and a government minister in charge of them. The province is no stranger to gambling with its casinos, and also its video lottery terminals that are available in bars and taverns. The Saskatchewan Indian Gaming Authority also has casinos, and the provincial government shares in the profits for these operations according to an agreement between the two parties.

Ken Cheveldayoff said: "I saw on the news… that an internet gaming source is advertising in Saskatchewan. I think that it's growing. It's there and it's something we're going to have to look at very closely."

The minister has already expressed interest in online gambling some months ago, when it was announced that Ontario was planning to launch an online gaming site with a projected possible date of 2012.

Cheveldayoff has estimated that it is likely that Saskatchewan residents spend about $30 million every year on online gambling. He notes that if the government of Saskatchewan was collecting that income, that the profits could be used for positive uses, such as on community programs.

Cheveldayoff explained: "What troubles me is that the profits are leaving the province and can't be reinvested in the good activities that Gaming Corporation, for example, does."

In 2010, the two Saskatchewan Gaming Corporation casinos in Moose Jaw and Regina made about $43 million in profits between them. It had been expected that the profits would be greater, however, with various labor disputes, the one casino operated with less table games, and shorter operating hours than usual. It is unlikely that such a situation could arise with an online casino.

Of the profits that are generated by gambling in Saskatchewan, half of the revenue is added to the province's general income, and the other half goes directly into a special fund that is used for community development in the Canadian province.

There is certainly a large amount of revenue that can be made from online gambling, and those provinces, states, or countries that recognize this will often make a move towards ensuring that they get a piece of the pie. There are those that are concerned that online gambling will make the land based gambling operations lose money, however, if they look at the bigger picture, it is likely that the government will ultimately benefit from legalizing and taxing online gambling sites, rather than attempting to shut them down. Governments, such as that in Saskatchewan, do some good for their residents, by using a portion of the profits for community programs.