The Canadian parliament has made a major decision in regard to the advertisement of sports betting in Canada. The third reading of the controversial bill S-269 was read in November 2024 and was approved. The legislation in question would ensure that there is a requirement to develop a national framework on the advertisement of sports betting. This framework would include measures on how sports betting ads would be regulated.
Regulations would likely include a restriction on the number of sports betting advertisements allowed to be shown, as well as the scope and the location of the advertisements being shown. In addition, it would likely prohibit celebrities, athletes and other high-profile individuals from appearing in such advertisements.
There has been a significant rise in the number of people participating in sports betting in the country following legislative changes in 2021, when parliament decriminalised single-event wagering. Now, the Transport and Communications Committee within Government believe that there has been a lack of foresight into the rise in sports betting advertisement that would come with the legalisation of more sports betting activity. The sports betting industry in Canada is thriving and continues to grow year on year. It has been projected that the online sports betting sector will reach revenues of $1.12 billion US dollars this year and $1.49 billion by the year 2029.
By 2029, there could be as many as 25.5 million people participating in sports betting online in Canada with the average revenue per user reaching almost US $53. Online casinos are slightly less popular, the number of users is expected to amount to 15.7m users by 2029. However, the average revenue per user is significantly higher at almost US $198. This suggests online casinos are more lucrative for providers, highlighting the importance of attracting and retaining customers. In Canada, the best online casino is often the one with the biggest range of games and most enticing offers.
The Canadian Football League (CFL) does not believe a national framework is required
Tight restrictions on gambling advertisements, or an outright ban on them would have impacts for a number of industries. A direct impact would be felt by sports betting sites and operators as it would significantly limit their opportunities to promote their services to potential users.
However, it is not just the sports betting sector that will feel its effect, the sporting leagues such as the Canadian Football League (CFL) will also face some negative consequences. An obvious loss will be financial as the revenue brought in by such advertisements is significant and there will also be administration and legal related costs as the League handles the new process of ensuring they follow a new framework.
CFL stars themselves will no longer have the ability to appear in advertisements. Many stars gain supplementary income through this type of work and find it beneficial for their publicity.
The CFL has written to parliament in opposition of Bill s-269
In response to the bill being approved by parliament, the CFL has hit back with lead commissioner Randy Ambrosie writing a formal letter to the senate. In his letter to the senate, Ambrosie was clear that while they may not have yet reached a perfect balance, the CFL already has a number of measures in place in regard to sports betting advertisements.
Ambroise stated that it regulates these types of advertisements on league-controlled channels, which includes broadcast-visible signage on the football field, in order to limit how often and how clearly a sports betting operator’s promotional content is featured during a football game. In addition to this, the CFL has its own initiatives in place aimed at educating all of its employees and stakeholders on responsible gaming.
Therefore, the CFL has made it clear that they are in opposition of any national framework coming into force. They believe that they are able to regulate this themselves and ensure appropriate safeguards are in place without government intervention.
Canada will not be the first to introduce restrictions on gambling advertisements
In the United States, the NFL has implemented its own restrictions and limits the number of gambling related advertisements to six per game. No league in the United States has publicly made a comment on a total ban on gambling advertisements and are unlikely to be in favour of such a move. The NFL are the only major league with a self-proposed limit at present. In Australia, the government is investigating the possible impact on a blanket ban on gambling advertisements. Over in Europe, both Italy and Belgium have similar laws already in place and Germany and Holland each have their own partial limits on such ads.
The decision on whether to ban sports betting advertisements in Canada is not one that will be taken lightly. However, it is possible that should it happen that the CFL could form partnerships with other industries and grow revenue streams from there.
