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MLAs wager whether to regulate online gambling in NWT

Independent consultant says more tax revenue and tourism spike could be benefits of legalized iGaming

The issue of legalized gambling in the NWT has been talked about several times over the years. Now, it appears some MLAs are willing to listen to the possibility of it becoming a thing in the territory.

Earlier this month, the legislative assembly's Standing Committee on Government Operations heard a presentation from independent consultant Amee Barber on interactive gaming, more commonly known as iGaming, or online gambling.

The very first online gambling platform opened up in 1994 when the Liechtenstein National Lottery began selling tickets virtually. show the industry as a whole took in more than US$85 billion (C$123 billion) in 2023 and although online gambling has been around for 30 years, legislation has been slower to catch on, said Barber.

Barber argued that should the NWT legislate online gambling, it could come with more tax revenue, which would be a curb to illegal gambling and a spike in possible tourism. She used Ontario as an example of success, pointing out that it was the first province to launch a regulated iGaming market, which happened a couple years ago.

"From July to September 2024, there was $738 million in gaming revenue, so that's four months," said Barber, noting that Ontario has had a 15 per cent boost in gambling-related tourism.

On paper, it looks like it could be a money-maker, but MLAs on the committee expressed both concern and interest. 

Yellowknife Centre MLA Robert Hawkins said he saw both sides of the coin.

"It sounds like there's a revenue leak in the Northwest Territories that could be garnered," he said, noting that unregulated online gambling already happens across the territory. 

Hawkins also asked Barber about the risks or side-effects of regulating online gaming. Barber said the most common concerns are about addictions.

"There's concerns from the fact that (some) online platforms are designed to be addictive, others would say they're designed to be entertaining," said Barber. SA国际影视传媒淭hereSA国际影视传媒檚 concerns that the ads are leading to normalization or a higher incidence of gaming. Again, this falls in line with most trends towards digital play and online gaming altogether with younger demographics.SA国际影视传媒 

Range Lake MLA Kieron Testart, who has previously brought up the idea of boosting gambling in the NWT, also asked Barber about what can be done to limit harm.

Again, she used Ontario as an example. 

Barber said there needs a self-exclusion program to have a license. That sort of program allows someone who decides to remove themselves from one platform to be removed from all other operators, she added.

That program is the first of its kind in North America, she said.

Barber also mentioned deposit limits as another tool to reduce harm, and stressed the need for regulation.

"In a regulated market, there is greater oversight and ability to use different analytics as well, to measure for indications of problem gambling," said Barber. SA国际影视传媒淚f there is an indication of problem gambling, there is often an opportunity to educate or for the individual to put limits on themselves, whereas in the unregulated market, there really is nothing similar.SA国际影视传媒

Frame Lake MLA Julian Morse, who chairs the committee, said comparing the NWT to Ontario in terms of market size wouldn't be the same.

He wondered whether those in the iGaming industry would even want to bother operating in the NWT and be regulated under the territory's rules.

"Would we actually see sites migrating up here or is it just such a tiny market that it wouldn't be worth their while to go through with any type of compliance that was created?," he asked.

Barber responded by saying there would be interest, but the more similar regulations are here as they currently are in Ontario, the better it would be in the long run.

"If there are unique agreements, they could potentially be managed by (the territorial) government," she said. "I do think there's interest because it's the first of its kind (in the NWT)."



About the Author: Devon Tredinnick

Devon Tredinnick is a reporter for SA国际影视传媒. Originally from Ottawa, he's also a recent journalism graduate from Carleton University.
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