Law Times

Law Times • JuLy 9, 2012 Gaming lawyers hoping for jackpot FOCUS O Hoegner BY MICHAEL McKIERNAN Law Times ntario's small com- province overhauls its betting industry. Earlier this year, the Ontario munity of gaming lawyers looks set to hit the jackpot as the Lottery and Gaming Corp. unveiled a new strategy that aims build a new casino in the Greater Toronto Area, increase private sector involvement in the operation of facilities, and take gambling online. "There' to boost lottery sales, nity in Ontario, which is attracting a lot of interest worldwide and a lot of work for us," says Michael Lipton, a partner in the Toronto office of Dickinson Wright LLP. When Toronto lawyer Stuart founded s tremendous opportu- tique firm Gaming Counsel Professional Corp. in 2007, he didn't think work on the domestic front would be a large part of the practice. And although the vast majority of his clients are outside the country, many are trying to get in on the action here. "I have been surprised and his bou- pleased to do more compliance planning work for people looking to participate and partner with the provincial lotteries, so that' very gratifying," he says. "There's a s been process going on now in Ontario where people are applying to work with the province to present and to roll out and to conduct their gaming operations, and as the Canadian market expands and different actors decide to become involved, gaming attorneys will see more and more work. accountant, got into the area after leaving his job as a tax lawyer to go in-house at a software manu- facturer that made products for online gaming web sites. When the company was sold, he decid- ed to open a solo practice in the field, something he describes as a "dream come true. Hoegner, who's also an " CITED BY THE SUPREME COURT OF CANADA poker, turning professional there was never a realistic proposition. "I'm avid but not good, Despite a keen interest in " "It's kind of like golf for me and I " he says. know my limit, which is the most important thing to know when you're gambling. who were good enough to make the grade on the international poker tour. He handles contract negotiations, endorsement deals, and intellectual property protec- tion for some stars on the circuit. "The analogy is to any kind His clients now include those " ORDER # 804218-62305 $3 2 volume looseleaf supplement book supplement per year Supplemen invoice separately 0-88804-218-3 Internet version available separately. Also available in Employment Spectrum. of sports promotion deal that an athlete would have, But the bulk of his work is for online operators. Ontario's move " he says. into that realm follows similar offerings in British Columbia and Quebec. Manitoba and some Atlantic provinces are also exploring the idea. 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CANADA LAW BOOK® Untitled-3 1 www.lawtimesnews.com Canadian Bar Review at Queen's University, says the expansion of provincial opera- tions online could spark a new approach to enforcement against foreign companies that take bets from Canadian residents because governments will have an incen- tive to restrict their competition. "It seems when financial con- siderations arise, there's more reasons for protectionism, so that could happen" he says. In Sadinsky' for Ontario residents to place bets with a company whose servers are outside the province. But others dispute that opinion. "I think it' s view, it's illegal than that," says Hoegner. "It is a grey area under the Criminal Code, so we don't know whether the past is any guide as to how they will be able to operate in Canada going forward. s a little more nuanced Canadian authorities in practice haven't cracked down until now. "It' Regardless of who's right, " particularly against the player," s s a difficult area to enforce, says Sadinsky. "Is a police officer going to knock on somebody' Ridout & Maybee LLP: Editors of the Canadian Patent Reporter door and go in and see what they're doing on the computer?" Some U.S. jurisdictions have gotten around that difficulty by instituting legislation that prohibits financial institutions from transferring money to offshore gambling sites. At the same time, some states are more aggressive with enforcement against operators themselves. In 2000, after years of advo- cacy on behalf of gaming regula- tory bodies in Canada, Lipton became one of 18 co-founders of the International Masters of Untitled-1 1 12-01-23 9:05 AM When it comes to IP in Canada, We're Well Read it all starts somewhere www.ridoutmaybee.com Gaming Law, a collection of gaming lawyers from around the globe. The group now has more than 200 members. He says federal legislators are also doing their bit to make Canada a particularly attractive place to do gaming business. Late last year, NDP MP Joe Comartin introduced a private member' that would eliminate the criminal prohibition on single-event sports betting in Canada. Currently, the law allows betting only on accumulator bets involving three games or more. s bill assent after the House of Commons approved it. It' rently in hearings at the Senate. Lipton says that will be a big step for the industry since sin- gle-sport betting is a huge chunk of the underground market. LT The bill is nearing Royal s cur- PAGE 15 12-07-05 11:39 AM

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