It’s not every public figure in Quebec that would have the courage to say that the best way forward is to follow the path blazed by Ontario.
But Ariane Gauthier, spokeswoman for the Quebec Online Gaming Coalition, has the courage of her convictions. The QOGC members are Betway, Bet99, DraftKings, Entain, Flutter, Games Global, Rush Street Interactive and Apricot Investments, and the coalition’s raison d’etre is to convince the Quebec government to modernize regulations around online gaming by establishing a license and tax system for private operators.
Members of the coalition, formed in 2023, operate in regulated markets around the world, including Ontario. A survey at that time showed that 73 per cent of Quebecers preferred private platforms for sports betting and online casinos over Loto-Québec.
Gauthier, who recently went old school by authoring an op-ed piece that ran in Le Journal de Montreal, spoke with Odds Shark about the coalition’s work.
Q&A with Ariane Gauthier
OS: How has the coalition helped consolidate momentum for a regulated market in Quebec?
A. First of all, we put the issue on the public agenda. Before the coalition, virtually no one was talking about modernization of the regulatory framework. So, with our intense presence in the media, the coalition was able to share a new perspective and start a public policy debate. I think that’s the first step. If you want to correct something, you have to show there’s a problem, so that’s the first thing the coalition did when it was created. We’ve been working with all political parties, we’ve met with critics in the opposition parties, and when we sit with people and explain the issue, people are receptive.
As far as government, Finance Minister Eric Girard is still protecting - with a lot of energy - the Loto Quebec monopoly. At first, they were saying let’s see how it goes in Ontario. Well, it’s gone pretty well in Ontario, and a large majority of the players in Ontario play in the regulated market, and money is flowing.
Then, they say we’re not sure Ontario’s model is legal. Well, the court has ruled that Ontario’s model is legal. Then they said, Loto Quebec will lose money if we allow private online gaming platforms. Again, what we see in Ontario is that OLG revenues are still progressing, while there are more than 50 operators in the province. At the same time, Loto Quebec’s net revenues are declining.
Inflation Impact Disproves Success
Q. The op-ed that you had published in Le Journal de Montreal – what kind of reaction did you receive?
A. Well, that was quite a downer for Loto Quebec, because a few weeks before we published the op-ed they were celebrating their historic financial results, congratulating themselves for their wisdom. A few weeks later, I publish an op-ed showing that – and what we did was quite simple, we took net revenues from Loto Quebec’s annual report, and we just adjusted to remove the impact of inflation – and what we saw was a decline over 20 years of Loto Quebec revenues. So, there is nothing to celebrate there.
The reaction was to stop completely this congratulations, and I hope the minister of finance will ask serious questions of Loto Quebec, especially because he’s asking all crown corporations in Quebec to generate one billion dollars more in savings, or additional revenues for the government, because we are running a large deficit here in Quebec. I think the op-ed will help in the discussions between Loto Quebec and the minister of finance.
Q. It doesn’t sound like you’ll be getting a birthday card from Loto Quebec.
A. I don’t expect one. Maybe the coalition and its members will send me a birthday card, instead.
Win-Win Situation
Q. Have you made much progress on consulting with the province and public health experts on their thoughts about a regulated market? Are there meetings ongoing, or imminent?
A. We’ve met them, at the start of the coalition, and quite honestly the experts don’t understand why the government doesn’t go forward. Because according to them, a regulation similar to Ontario will bring a more safe environment for all players, whether they play with private platforms or Loto Quebec, and it will bring in more money to add additional budget for responsible gaming, or other public services for the provinces. It’s a win-win situation. The experts…continue to push in the same direction, but from an academic perspective, what more do you want? That’s why we don’t meet on a regular basis, the case has already been made.
Q. We’re about a year and a half away from the next provincial election in Quebec; are you optimistic, or hopeful, that you might have a regulated market by that time?
A. For sure, we will continue to work with all political parties. I think the large deficit in Quebec should be the motivator to go ahead. Again, it’s not to get money just because we need money, it’s $300 million for good reasons. So, it’s an opportunity that should be taken advantage of, but so far very, very little from the minister of finance. We don’t know what will be in the next budget, but for sure, we’re working with all the parties to get this issue in the platforms and to make sure there’s consideration and appetite for reform in the next two years.
Lessons From Ontario Regulation
Q. When you look at the way Ontario is going about a regulated market, are there things you see that Quebec could do better if and when a plan is formulated?
A. The Ontario model is definitely an example, it’s been vetted by the courts and it’s legal in Canada, and so far it shows results. As for the specific rules and specific points, we believe it’s up the government to decide, it’s up to the government to decide what is enough advertising, what’s the maximum bet you can make? So, we will assist the government and share our expertise and knowledge to do it. But what we want to show, and what’s interesting in Ontario is that the model shows flexibility.
Initially, it seems the advertising rules were a bit loose, and this year they forbid the use of sports stars in advertising. That’s what is interesting, once you regulate you can enforce your rules and it’s up to government to put this in place, and the industry will support the government and work to see that implemented.
Q. There are eight members in the coalition right now, is there any sign of growth in that number?
A. We have a steady group of members, and it’s among the largest companies in the world. We are still open to new members, but as we speak there are no imminent discussions or anything to announce.
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