INTRODUCTION AND BRIEF DESCRIPTION
This section of the Criminal Code of Canada exempts certain types of betting from the laws against gambling.
SECTION WORDING
204(1) Sections 201 and 202 do not apply to (a) any person or association by reason of his or their becoming the custodian or depository of any money, property or valuable thing staked, to be paid to (i) the winner of a lawful race, sport, game or exercise, (ii) the owner of a horse engaged in a lawful race, or (iii) the winner of any bets between not more than ten individuals; (b) a private bet between individuals not engaged in any way in the business of betting; (c) bets made or records of bets made through the agency of a pari-mutuel system on running, trotting or pacing horse-races if (i) the bets or records of bets are made on the race-course of an association in respect of races conducted at that race-course or another race-course in or out of Canada, and, in the case of a race conducted on a race-course situated outside Canada, the governing body that regulates the race has been certified as acceptable by the Minister of Agriculture and Agri-Food or a person designated by that Minister pursuant to subsection (8.1) and that Minister or person has permitted pari-mutuel betting in Canada on the race pursuant to that subsection, and (ii) the provisions of this section and the regulations are complied with.
EXPLANATION
Section 204(1) of the Criminal Code of Canada outlines the exceptions that apply in circumstances surrounding gambling and betting. The section explains that sections 201 and 202 of the Code, which criminalize common betting houses and games of chance, do not apply to certain situations and individuals. This includes any person or association that becomes the custodian or depository of money, property or valuable items that are staked to be paid out to the winner of a lawful race, sport, game or exercise, the owner of a horse in a lawful race, or the winner of any bets between not more than ten individuals. The section further states that private bets between individuals not engaged in the business of betting are also exempted from prosecution. Additionally, bets made through the use of a pari-mutuel system on horse racing are allowed if certain conditions are met. The bets must be made on the racecourse of an association in respect of races conducted at that racecourse or on another racecourse in or out of Canada. Moreover, the governing body that regulates the race must be certified as acceptable by the Minister of Agriculture and Agri-Food or a person designated by that Minister pursuant to subsection (8.1). Finally, the Minister or designated person must have permitted pari-mutuel betting in Canada on the race pursuant to subsection (8.1). In essence, section 204(1) provides exemptions to certain betting and gambling activities in specific circumstances. It aims to allow certain lawful practices to occur without facing criminal prosecution while ensuring that individuals and organizations are not engaging in illegal activities.
COMMENTARY
Section 204(1) of the Criminal Code of Canada provides exemptions for certain forms of gambling from the provisions of sections 201 and 202. These exemptions cover a range of activities, including lawful races, sports, games or exercises, private bets between individuals, and bets made through a pari-mutuel system on horse races. The first exemption applies to any person or association that becomes the custodian or depository of any money, property or valuable thing staked to be paid to the winner of a lawful race, sport, game or exercise, the owner of a horse engaged in a lawful race, or the winner of any bets between not more than ten individuals. This exemption recognizes that certain forms of gambling have a long and legitimate history in Canada, and therefore do not fall under the same legal category as other forms of gambling. The second exemption covers private bets between individuals who are not engaged in any way in the business of betting. This exemption recognizes the right of individuals to engage in private gambling activities without interference from the state. The third exemption applies to bets made or records of bets made through the agency of a pari-mutuel system on running, trotting or pacing horse-races. This exemption recognizes the unique nature of horse racing and acknowledges the fact that this type of betting is highly regulated and conducted under strict rules and regulations. In order to qualify for the exemption, the bets or records of bets must be made on the race-course of an association in respect of races conducted at that race-course or another race-course in or out of Canada. In the case of a race conducted on a race-course situated outside Canada, the governing body that regulates the race must be certified as acceptable by the Minister of Agriculture and Agri-Food or a person designated by that Minister pursuant to subsection (8.1) and that Minister or person must have permitted pari-mutuel betting in Canada on the race pursuant to that subsection. This section of the Criminal Code reflects the Canadian government's approach to regulating gambling. Rather than taking a prohibitionist stance, the Canadian government has chosen to regulate certain forms of gambling, recognizing that they have a legitimate place in Canadian society. By exempting certain forms of gambling from the criminal law, the government is able to ensure that these activities are conducted in a safe, responsible and transparent manner.
STRATEGY
Section 204(1) of the Criminal Code of Canada provides exemptions for certain types of betting that would otherwise be illegal under Sections 201 and 202 of the Code. These exemptions, however, are subject to certain conditions, and thus require strategic considerations when dealing with this section of the Code. One of the key considerations is to ensure that the betting falls within one of the categories of exemption provided under Section 204(1). These categories include: (a) betting on a lawful race, sport, game, or exercise; (b) private bets between individuals not engaged in the business of betting; and (c) bets made through the agency of a pari-mutuel system on horse races. Another consideration is to ensure compliance with the conditions set out in Section 204(1). For example, in the case of pari-mutuel betting on horse races, the bets must be made or recorded through an approved system on a racecourse recognized by the Minister of Agriculture and Agri-Food. Therefore, any strategy must take into account the need for compliance with these conditions. Compliance with other relevant laws and regulations is also important. For example, if a betting operator plans to offer services to customers outside Canada, they must ensure compliance with the laws in those jurisdictions as well. Additionally, betting operators must comply with the rules and regulations of any regulatory body that governs their activities, especially if they are licensed and regulated in order to operate. When dealing with Section 204(1) of the Criminal Code of Canada, one of the strategies that could be employed is to seek legal advice from experienced gambling lawyers. These lawyers can help betting operators to navigate the complex legal framework and ensure compliance with relevant laws and regulations. Moreover, they can provide guidance on how to structure their operations to maximize their chances of falling under one of the exemptions provided for under Section 204(1). Another strategy could be to engage with regulatory bodies and stakeholders in the gambling industry. For example, betting operators could work with horse racing associations and regulators to ensure their operations comply with their rules and to obtain the necessary certifications and approvals to operate in specific jurisdictions. Additionally, they could engage with legislators to advocate for changes in the law that would provide greater flexibility for the gambling industry. In conclusion, Section 204(1) of the Criminal Code of Canada provides exemptions for certain types of betting. However, betting operators must take into account the conditions and requirements set out in the section and other relevant laws and regulations. By working with experienced gambling lawyers, engaging with regulatory bodies and industry stakeholders, and advocating for changes in the law, betting operators can develop strategies that maximize their chances of compliance while enabling them to offer their services in a legally compliant manner.