1 The Issue of Legalized Gambling in Canada Ayesha Kapadia Controversy has surrounded the activity of gambling ever since its legalization under the authority of the provincial governments in Canada. Due to the nature of the activity, there are several delicate and complicated issues that arise. On both sides of the debate, there are numerous arguments in favour of and against legalized gambling. The government argues that legalized gambling is a way of creating new jobs and earning revenue without raising taxes. On the other hand, there are those who argue that the political integrity of the governments comes into question. In addition, there are several hidden social costs that result from legalized gambling. Issues such as problem gambling, crime, and unemployment seem almost inevitable. When analyzing the question of legalized gambling it is important to calculate the costs and benefits that come with it. Research so far has shown that there seems to be more of a cost rather than a benefit with legalized gambling. The social toll that gambling creates is far greater than the monetary benefits that are generated. In fact, in the long run, the monetary benefits may just be negated because of the actions that need to be taken to deal with the social costs. Therefore, this paper shall argue that legalized gambling is a detriment to society. Before we can go any further into the debate of legalized gambling, it is important to take a brief look at the history of gambling in Canada. The Criminal Code, which was passed in 1892, stated that all gaming activity was prohibited. Because all matters that dealt with criminal law were under the federal jurisdiction, gambling issues also fell under federal authority. Almost 80- years later in 1969, the Criminal Code was amended to allow both provincial and federal governments to run lotteries. This was a major shift in jurisdiction for both levels of government. In the years after 1969, further amendments were made which allowed provincial governments to hand out licenses to charity and religious organization which permitted them to hold lotteries, so long as the proceeds were for charitable or religious purposes. By 1985, the federal government had handed over all jurisdictions for gaming activities to the provinces, and in return the provinces agreed to pay the federal government $100 million. This was a major shift for gaming policies in Canada, as now gaming activity had a commercial aspect in the provinces. Ever since 1985, provincial governments have now been able to run lotteries, and can also hand out licenses
2 to religious and charity groups to conduct lottery schemes of their own. This brief history of gambling in Canada gives us an understanding of the liberalization that gaming activity has gone through within Canadian society.1 What were the objectives behind the legalization of gambling in Canada? The major reason was for an economic advantage. The 1985 agreement between the federal and provincial governments was administered by federal and provincial ministers who were responsible for