FEDERAL REG

SOR/2017-8: Pari-Mutuel Betting Supervision Regulations — Regulations Amending Criminal Code

REGISTRATION OF FEDERAL REGULATION - VIA PART II OF THE GAZETTE

Registered
February 2, 2017


REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Issues The Canadian Pari-Mutuel Agency (CPMA) regulates and monitors pari-mutuel betting in Canada on horse racing. Section 204 of the Criminal Code is the legislative authority by which the Minister of Agriculture and Agri-Food may make regulations in respect of pari-mutuel betting (Pari-Mutuel Betting Supervis... (Click for more)


Published on February 22, 2017

Bill Summary

SOR/2017-8: Pari-Mutuel Betting Supervision Regulations — Regulations Amending Criminal Code

REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Issues The Canadian Pari-Mutuel Agency (CPMA) regulates and monitors pari-mutuel betting in Canada on horse racing. Section 204 of the Criminal Code is the legislative authority by which the Minister of Agriculture and Agri-Food may make regulations in respect of pari-mutuel betting (Pari-Mutuel Betting Supervision Regulations, the Regulations). The CPMA uses this regulatory framework to ensure the integrity of pari-mutuel betting systems in Canada. The objective of the CPMA is to establish compliance with the Regulations in an efficient and effective manner, thereby protecting the interest of the betting public. The Regulations were amended extensively in August 2011. Since then, the CPMA has further reviewed the Regulations and identified additional changes that would enhance the predictable operation of authorized pari-mutuel betting systems. In addition, a number of the changes will reduce the administrative and regulatory burden on industry, consistent with the Government of Canada’s Red Tape Reduction Action Plan. The CPMA has also proposed that a drug be added to the schedule of drugs under the advice of the Federal Drug Advisory Committee. Quantitative limits for cobalt would be added to section 2 of the schedule to the Regulations. Finally, the Standing Joint Committee for the Scrutiny of Regulations (SJCSR) has identified a number of instances where changes would resolve discrepancies between the English and French versions. Objectives The changes have benefited from internal review and broad industry consultation. They will help ensure that a modern approach to regulatory oversight continues to be delivered by the CPMA, and that the objectives of the horse racing industry are being advanced without compromising the integrity expected by the betting public. These changes will also help ensure that an effective barrier is maintained to discourage those who would attempt to influence the outcome of a horse race by administering drugs or medicaments to horses. Description The CPMA has identified a number of changes to the Regulations that will help ensure a relevant and comprehensive regulatory framework for supervising the conduct of pari-mutuel betting in Canada on horse racing. Regulatory amendments include the following: Extending the duration for which betting permits and betting theatre licences may be issued, for up to three years; Clarifying the betting information that race-course associations must make available to the betting public; Identifying a secondary source for exchange rates so that bets made in less common currencies may be converted to Canadian dollars and commingled in Canadian hosted betting pools; Opening betting accounts in provinces that do not conduct horse racing; Establishing requirements for conducting separate pool betting; Clarifying the requirements for the CPMA’s Equine Drug Control Program; Making changes that address inconsistencies in the French and English versions of the Regulations; Repealing the regulation that allows Standardbred Canada and the United States Trotting Association to fulfill certain responsibilities related to the conduct of pari-mutuel betting in a province that has not otherwise established an organization to regulate horse racing; and Adding the drug cobalt to section 2 of the schedule to the Regulations. Benefits and costs These amendments will clarify regulatory requirements for conducting pari-mutuel betting on horse racing, and will streamline the application and authorization process. They do not introduce a requirement for additional funding for the CPMA to continue supervising and regulating pari-mutuel betting in Canada. Nor do they impose any additional costs to race-course operators in order for them to comply with the regulatory requirements. There are no direct costs imposed upon the betting public. “One-for-One” Rule The “One-for-One” Rule does not apply to these Regulations, as the regulatory amendments will not impose any administrative burden on business. Small business lens The small business lens does not apply to these Regulations, as the regulatory amendments will not impose any costs on small business. Consultation In September 2014 and July 2016, the CPMA consulted with Racetracks of Canada, an affiliation of Canadian racecourse operators, as well as the provincial regulatory bodies to discuss the regulatory amendments. The CPMA made available a discussion document in the fall of 2014 and prepublished the proposed regulatory amendments in the Canada Gazette, Part I, on June 11, 2016, to encourage feedback from the Canadian public and other stakeholders. The CPMA also consulted with the Federal Drug Advisory Committee, which is composed of veterinarians, pharmacologists and chemists, when proposing to add the drug cobalt to the schedule. The Committee supports this regulatory action. Prepublication in the Canada Gazette, Part I The proposed Regulations were prepublished in the Canada Gazette, Part I, on June 11, 2016, for a 45-day comment period. Submissions received were in support of the proposed regulatory amendments. Two submissions addressed the proposal to broaden the definition for “pay-out price.” The CPMA has withdrawn this particular proposed amendment and will conduct further consultations with all stakeholders before considering future regulatory amendments regarding this item. Submissions also addressed the proposed amendment to subsection 51(4) of the Regulations, which describes the requirements for applying exchange rates when commingling foreign currency bets into a Canadian hosted pool. The Bank of Canada has announced plans to reduce the number of currencies for which it provides exchange rates, and to discontinue posting “noon” rates, starting March 1, 2017. Subsection 51(4) of the Regulations has been amended to reflect these anticipated changes. Rationale These changes are primarily administrative in nature and will advance the Government of Canada’s Red Tape Reduction Action Plan. The changes include extending the current one-year duration for which all CPMA-issued authorizations remain valid. Multi-year approvals will reduce the administrative burden on race-course associations seeking approval to conduct pari-mutuel betting. Drugs and medications administered to race horses could affect the outcome of a pari-mutuel race. Drugs that are veterinary medications approved for sale in Canada may be administered to a horse but, with few exceptions, including vitamins and some anti-parasitic and antimicrobial agents, must not be present in a horse’s system when it races. Compliance with the CPMA’s Equine Drug Control Program is accomplished by testing post-race samples of urine or blood taken from race horses. Positive results are reported to the provincial regulatory bodies for appropriate action under their Rules of Racing. The addition of cobalt to the schedule will be positive because the prohibition of potentially performance-altering drugs and substances will continue to protect the bettor and the integrity of the racing industry. Stakeholders have been advised of the pending addition of cobalt to the schedule. Implementation, enforcement and service standards The Regulations will not require any new mechanisms to ensure compliance and enforcement. The CPMA is adjusting its existing supervisory activities as it moves toward a risk management approach to overseeing authorized betting activity. This includes reliance on remote monitoring and on-site inspections by the CPMA’s officers and the use of an independent, automated auditing system that helps establish that licensed pari-mutuel operators continue to comply with all regulations. There are no costs or environmental impacts associated with this regulatory amendment. No additional resources are required to implement the amendments. The Regulations, except section 8, come into force on the day on which they are registered. Section 8 comes into force on March 2, 2017. Contact Collin Baird Manager Legislative Services Canadian Pari-Mutuel Agency 960 Carling Avenue Central Experimental Farm, Building 74 Ottawa, Ontario K1A 0C6 Telephone: 613-759-6630 Fax: 613-759-6230 Email: [email protected] Footnote a S.C. 1994, c. 38, par. 25(1)(g) Footnote b S.C. 1994, c. 38, par. 25(1)(g) Footnote c R.S., c. C-46 Footnote 1 SOR/91-365; SOR/2011-158, s. 1

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