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ONLINE SPORTS BETTING: DISCUSSION IN ONTARIO IS ABOUT WHETHER IT COULD LEAD TO ALARMING ADDICTION

Private gaming websites that have gone through the province of Ontario licensing process are allowed to start taking wagers as of April 4, 2022. This new online platform marketplace is being run by iGaming Ontario, a subsidiary of the Alcohol and Gaming Commission of Ontario. Right now, online sports betting sites are the heaviest in advertising spending.

The Canadian government made single-game betting legal in Canada last summer, but Ontario didn’t fully open until 12:01 a.m. April 4, 2022. The province of Ontario is expected to generate about $800 million in total revenue this year from the online gambling market. Ontario with a population of approximately 15 million, is equal in size to the state of Pennsylvania, the fifth-largest state in the United States by population.

Who is responsible for monitoring online casinos in Ontario?

The Alcohol and Gaming Commission of Ontario is responsible for monitoring the new online casino market run by online casino operators. They were already monitoring the land-based casinos such as Casino Windsor run by Caesars Windsor, Fallsview Casino Resort in Niagara Falls and Casino Rama. Now they are in the online casino game too. They have a mandate to ensure that Ontario’s alcohol, gaming, horse racing and cannabis retail sectors operate with honesty and integrity, in the public interest. The federal government allowed for single-game betting and now the Ontario provincial government has implemented its licensing system for online sports betting.

The question now is whether online sports betting and other wagering sites will lead to an increase in gambling addiction. In this Brandon’s Blog, I explore the issue and describe why people who become insolvent because of addiction must be treated differently than others who have run-up debt.

online sports betting
online sports betting

Welcome to the exciting world of iGaming in Ontario!

Welcome to the exciting world of Internet gambling in Ontario! Here you’ll find all the hottest games and biggest jackpots, the most popular casino games, all just a click away! So come on in and start winning today!

The government of Ontario has officially launched its new online gaming market, which includes online casinos and esports betting sites. This marks the first time a Canadian province has run a private market for online betting, and predictions are that it could be worth billions of dollars.

The new regime in the province has raised many eyebrows and people are anxious to see how it will play out. The province has stated that it would like to bring some of the illegal, grey-market players into the fold by promising lower taxes (for the operators) and enforcing responsible gambling standards and anti-money laundering practices. This would, of course, generate new revenue from taxes.

What is the Ontario gambling age?

Both online sports betting and online casino gaming are available online in Ontario to anyone of legal betting age which is19 years or older. It didn’t take long for someone to bet on Ontario’s online sports betting industry.

PointsBet announced 50 seconds after the start that its “first big bet” in the province was Monday night’s NCAA men’s basketball finals in which North Carolina beat Kansas and the Toronto Maple Leafs beat the Tampa Bay Lightning.

Initially, 16 gaming operators, including sports betting operators, for each to become a provincially licensed operator to open operations in the province. More companies have registered with the Alcohol and Gaming Commission of Ontario, but have yet to reach an agreement with iGaming Ontario.

One is online game operator FanDuel, which signed a multi-year deal with TV station TSN. FanDuel will integrate with TSN across platforms, including in-game broadcasting, digital marketing, mobile apps and co-branding opportunities.

The service means that people in Ontario can now place bets on a wide variety of casino games, and sporting events, including single-event sports, betting, betting, and other gambling through online websites, smartphone apps and online casino apps that operate in the province’s regulated markets. The many gamblers in the province who have been active in the so-called “grey market” for years will find this appealing.

online sports betting
online sports betting

Is the Woodbine Casino available online?

But not everyone is excited about its launch. Jim Lawson, chief executive of Woodbine Entertainment, worries that the growing online sports betting market could have a detrimental effect on the horse racing industry and Woodbine Casino.

Woodbine, Canada’s largest bookmaker, has been unable to integrate its homogeneous horse racing business into legal online sports betting. “We don’t seek exclusivity, we don’t seek protection,” Lawson said. “We just want to be a part of it…all we’re asking for is having the operator host our product.”

“We knew almost from the beginning that they (sports betting platforms) were all very interested in horse racing, and if they wanted it, they had to buy it from Woodbine. That’s the premise that we’ve been pushing. And putting our content on their platform is a good thing for racing because that’s going to give it a huge exposure.”

Lawson hopes horse racing will soon be included in this newly competitive market of gambling sites with its wide range of betting options to allow the horse racing gambler to bet online, but he admits that being forced to do so after the game’s release isn’t ideal.

“I think it hurts us because we’re not on the starting line with everyone else,” he said.

Do online sports betting lead to gambling addiction?

The Ontario government of course hopes that everyone will only be involved in responsible gaming, but we all know that not everyone will. The early stages of the COVID-19 pandemic saw a shift from offline gambling to online gambling, including online sports betting, for many people. Offline gamblers became online gamblers. While most people see gambling as nothing more than a form of entertainment and will not be a seriously impacted gambler, the epidemic has led to an increase in gambling addiction.

Gambling addiction is a problem that is on the rise for women in the United Kingdom since the onset of the coronavirus pandemic. This addiction can lead to mental health problems, cognitive problems, relationship problems, and in some cases, bankruptcy and crime.

Unlike alcohol and drug addiction, gambling addiction does not have obvious physical symptoms or physiological manifestations. However, gambling problems have a huge impact. According to the latest estimates from the World Health Organization, players worldwide lost a total of $400 billion per year since 2016.

The current diagnosis of gambling disorder is based on the Diagnostic and Statistical Manual of Mental Disorders published by the American Psychiatric Association. Treatment and management guidelines for gambling disorders are being developed by the National Institute for Health and Care Excellence. Cognitive behavioural therapy and self-help groups are currently the most effective treatments for gambling disorders. These methods can help change thinking patterns and behaviours associated with gambling.

The key to addressing gambling disorders is early detection and treatment. This is essential in order to keep everyday activities enjoyable and prevent the brain’s reward system from being distorted.

If an addiction has taken over someone’s life, causing them to borrow money they can never repay, or divert money from family needs to feed their online sports gambling addiction, bankruptcy may be an option for them to get out of debt. However, a licensed insolvency trustee must deal with the bankrupt person whose causes of insolvency include addiction in a specific manner different than bankruptcies not caused by addiction.

online sports betting
online sports betting

Can you file bankruptcy for online sports betting debts?

People in debt because of addiction are usually dealing with personal loans, lines of credit, credit card debt, and maybe even income tax debt. They don’t have the money to repay and don’t have to repay your debts in full.

Filing an assignment in bankruptcy for gambling debts is possible, but it is not going to be easy. Different concerns must first be taken into consideration by people with gambling dependencies and financial obligations resulting from gambling.

The key issues are:

  • Your assets.
  • What is your annual income?
  • Have you ever been bankrupt before?
  • Full disclosure of all your debts, not just money owed as a result of gambling.
  • Have you been avoiding paying taxes because of gambling money?
  • Do you qualify for financial restructuring to avoid bankruptcy by filing a consumer proposal or a Division I proposal?
  • If you’re struggling with a gambling addiction, there are many resources and programs available to help you get the treatment you need. Gamblers Anonymous is one of the most well-known programs, but there are also many therapists and counsellors who specialize in gambling addiction who can help you in the long term.
  • To get a bankruptcy discharge, it is crucial for the person to show both financial rehabilitation as well as showing that their treatment is successfully stopping them from continuing to gamble. This involves the bankrupt revealing they have regularly attended therapy sessions and have ceased their addictive behaviour. They must also prove they are now capable of managing their finances responsibly.

Online sports betting: There are many other issues that need to be addressed besides just getting gambling addiction debt help

If you are insolvent and decide to file for bankruptcy, you will face several challenges.

Your non-exempt assets or equity in non-exempt possessions will be transferred to your Trustee. For example, if you own your marital residence with your partner, your share of the asset will be given to the Trustee and your partner will have to buy your interest back.

In a bankruptcy, if your regular income exceeds the poverty line, you will have surplus income to pay to the Trustee. If you have never been bankrupt before and have surplus income, you will have to make a regular monthly payment for 21 months before you can seek bankruptcy discharge. If you have been previously bankrupt, the 21 months becomes 36 months.

When the Trustee reports that your financial problems are due to a gambling addiction, they may try to block your discharge in bankruptcy. You will need to show not only that you have fixed your finances, but also that you have gotten help for your addiction. The Trustee has an obligation to make sure you have it as part of your overall rehabilitation.

online sports betting
online sports betting

Online sports betting, gambling addiction and getting a bankruptcy discharge

If you have a large unpaid income tax balance with the Canada Revenue Agency, they will likely oppose your discharge from bankruptcy. Your Trustee needs to oppose your discharge from bankruptcy if your bankruptcy is due to gambling. The facts that make it impossible to get an absolute discharge from bankruptcy are under the Bankruptcy and Insolvency Act (Canada) (BIA).

Section 172 of the BIA permits the Court to make an order of discharge which is either absolute, conditional, suspended, or even refused. The purpose of section 172.1 of the BIA is to prevent bankrupts who owe (1) $200,000 or more in personal income tax debt, and (2) at least 75 percent of all unsecured proven claims in the form of personal income tax debt, from receiving an automatic discharge from bankruptcy.

If a fact under s. 173 of the BIA is proven, the absolute discharge is not possible. The acknowledged fact that gambling addiction can bring on or contribute to bankruptcy is an s. 173 fact (BIA, s. 173(e)) that precludes an absolute discharge. This is why your Trustee would oppose your discharge from bankruptcy. The Court and Trustee require that any decision on your discharge maintain the integrity of the Canadian insolvency system. Your discharge will be contingent upon you paying a certain amount of money to your Trustee. A bankruptcy discharge suspension for a period of time after you pay the condition is also possible. If your behaviour was especially egregious, your discharge could be refused.

At the discharge hearing, you will need to demonstrate that you are taking active measures to end your addiction and are receiving counselling and therapy for gambling addiction. You will also need to show that your financial situation is improving.

Fantasy sports is one thing but an online sports betting addiction is real

I hope that you found this online sports betting Brandon’s Blog interesting. Among the countless problems that can arise if you have too much debt, you may also find yourself in a situation where you are seriously considering bankruptcy as a realistic option.

If you are concerned because you or your business are dealing with substantial debt challenges, whether you need online sports betting debt help or just plain old debt help and you assume bankruptcy is your only option, call me.

It is not your fault that you remain in this way. You have actually been only shown the old ways to try to deal with financial issues. These old ways do not work anymore.

The Ira Smith Team utilizes new modern-day ways to get you out of your debt difficulties with debt relief options as alternatives to bankruptcy. We can get you the relief you need and so deserve. Our professional advice will create for you a personalized debt-free plan for you or your company during our no-cost initial consultation.

The tension put upon you is big. We know your discomfort factors. We will check out your entire situation and design a new approach that is as unique as you and your problems; financial and emotional. We will take the weight off of your shoulders and blow away the dark cloud hanging over you. We will design a debt settlement strategy for you. We know that we can help you now.

We understand that people and businesses facing financial issues need a realistic lifeline. There is no “one solution fits all” method with the Ira Smith Team. Not everyone has to file bankruptcy in Canada. The majority of our clients never do as we know the alternatives to bankruptcy. We help many people and companies stay clear of filing an assignment in bankruptcy.

That is why we can establish a new restructuring procedure for paying down debt that will be built just for you. It will be as one-of-a-kind as the economic issues and discomfort you are encountering. If any one of these seems familiar to you and you are serious about getting the solution you need to become debt-free, contact the Ira Smith Trustee & Receiver Inc. group today.

Call us now for a no-cost consultation.

online sports betting
online sports betting

 

Categories
Brandon Blog Post

COMPANIES’ CREDITORS ARRANGEMENT ACT: CREDITORS ARE NOW ABLE TO MAKE BOLD CLAIMS AGAINST LAURENTIAN

We hope that you and your family are safe, healthy and secure during this COVID-19 pandemic.

Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

companies' creditors arrangement act
Companies’ Creditors Arrangement Act

If you would like to listen to an audio version of this Companies’ Creditors Arrangement Act Brandon’s Blog, please scroll to the very bottom and click play on the podcast.

Companies’ Creditors Arrangement Act: Facing insolvency, Laurentian University files for creditor protection

Laurentian University’s filing under the Companies’ Creditors Arrangement Act has been reported in the media and I have written about it in previous Brandon Blogs. On February 1, 2021, Laurentian University filed for what the media calls the “bankruptcy protection process” under the Companies’ Creditors Arrangement Act. It is really a creditor protection process for a financial restructuring. A large amount of work and involving tough choices will definitely be required for Laurentian to emerge from this as a financially and operationally sound university.

This restructuring will call for difficult negotiations with its lenders, suppliers, faculty and labour unions. Laurentian will have to overhaul its academic programs and look for brand-new revenue generation opportunities to survive. As well it will require a re-evaluation of its federated colleges’ design (Laurentian is just one of 4 universities that make the Laurentian Federation; the others who are all part of the Laurentian Federation Agreement are: the University of Sudbury, the University of Thorneloe, and Huntington University).

The stay of proceedings provided by the Court gives Laurentian protection from creditors and prevents them from taking steps against Laurentian, without the prior leave of the Court. The Companies’ Creditors Arrangement Act filing means that Laurentian has concluded that it cannot fulfill its financial commitments as they end up being due and uses the protection supplied by this restructuring law to reduce its overall debt load without having to pay its debts in full.

FOR A FULL DESCRIPTION OF WHAT THE COMPANIES’ CREDITORS ARRANGEMENT ACT IS AND HOW IT WORKS, SEE OUR BLOG:

CCAA CANADA: OUR EXTRAORDINARY GUIDE TO 2020 TROUBLED CANADIAN COMPANIES SEEKING BANKRUPTCY PROTECTION

FAQ on the Companies’ Creditors Arrangement Act Insolvency Proceedings of Laurentian University

As I mentioned, I previously wrote three blogs so far on the Laurentian University Companies’ Creditors Arrangement Act insolvency process:

Every time there has been a major event in this court-supervised restructuring, I have written about it. So far the topics I have covered are:

  • The filing under the Companie’s Creditors Arrangement Act.
  • What creditor protection is under the “Bankruptcy Protection Legislation“.
  • What a stay period and a stay of proceedings are.
  • What does CCAA mean?
  • The Laurentian President affidavit upon filing and what it said about the university finances.
  • What Laurentian has said about its day-to-day operations, the Federated University model and the need to get out of that agreement and general oversight of university affairs.
  • The shock and the effect on Northern Ontario’s community over Laurentian’s filing.
  • The potential effect on current students, both undergraduate and graduate students and the overall student experience.
  • The initial list of creditors, both secured and unsecured creditors, in this restructuring process filing.
  • The unions have lost the fight to unseal documents relating to Laurentian communications with the provincial government.
  • Faculty and other staff terminations.
  • The union represents faculty members on a new collective agreement reached by Laurentian Union Faculty Association or LUFA.
  • Adjustments to the benefit pension plan and health benefit plan.
  • The failure of the non-Laurentian parties to the Federated University agreement in appealing Laurentian’s disclaimer of the Federated University model agreement.
  • The status of the interim financing DIP loan in the Companies’ Creditors Arrangement Act administration.
companies' creditors arrangement act
Companies’ Creditors Arrangement Act

So as you can see, all the topics that I have covered in these 3 previous Brandon Blogs really are answers to a legal FAQ regarding Laurentian University’s CCAA filing.

Decisions about Laurentian University being made by creditors, insolvency specialists and the Ontario Court but not public

The National Union of Public and General Employees have stated that in a free and democratic society, choices regarding publicly financed institutions are expected to be made by elected officials or people who are responsible to them. That makes sure that when choices are made the demands of our communities who are funding these institutions through our tax dollars and donations are considered.

But when such organizations, like Laurentian University, are permitted to use a bankruptcy protection statute like the Companies’ Creditors Arrangement Act, that responsibility is lost. All that matters is what the creditors either desire or are willing to accept. They want the federal government to change bankruptcy protection legislation so that this cannot happen again.

Liberal MP Paul Lefebvre introduced a bill in Parliament that aims to keep Laurentian University’s turmoil from happening at other schools. He and the Union believe that public institutions shouldn’t be allowed to use bankruptcy protection to force through cuts. I don’t believe that at this time, the bill has any traction to change bankruptcy legislation.

4 inspectors will be chosen to work with court monitor in the claims process

This now brings us current to the last attendance in the Ontario Superior Court of Justice Commercial List where Laurentian and its court monitor brought forward a claims process to be approved by the court in this Companies’ Creditors Arrangement Act process.

The lawyer for TD Bank advised the Court that TD supports the making of a Claims Process Order however feels that, in the circumstances, the procedure ought to contemplate that the Monitor will disclose its analysis of the claims filed with the Pre-filing Lenders. The Bank said that Laurentian and the Monitor have acknowledged that there may very well be material claims filed, some of which will be unliquidated and/or contingent. Some may be subject to a bona fide conflict – both relative to liability as well as quantum.

The Bank proposed a modification to the Monitor’s Claims Process where material cases should be discussed with the Pre-filing Lender group so that there could be a consensual resolution of such claims. The Bank said that it is reasonable as well as proper in this case to produce a reasonable and transparent process that enhances the goals of the Companies’ Creditors Arrangement Act.

Based upon information available to TD Bank at the time its factum was issued, the overall quantum of claims is unidentified, yet can sensibly be expected to include substantial claims representing: (a) the claims of the Pre-filing Lenders; (b) claims of current and also previous employees; (c) those of the federated colleges occurring from the termination and disclaimer of their contracts with Laurentian; (d) potential claims developing from the pension-related issues; as well as (e) claims of various other creditors with prefiling and also restructuring claims.

The Judge specified that he bore in mind the TD Bank submissions that it is extremely vital to move quickly, however not to rush. The Claims Process needs to be reasonable to all. He acknowledged that the Pre-filing Lenders should have some involvement in the Claims procedure. So the Judge borrowed from the provisions of the Bankruptcy and Insolvency Act (Canada) (BIA), as there were no specific rules for this in the Companies’ Creditors Arrangement Act. He ruled that there will be a bespoke process.

Laurentian and the Monitor should modify their proposed Claims Process by assigning 4 Inspectors; 2 of which will be representatives of the Pre-filing Lender group. The remaining 2 will be drawn from the creditors from those with a claim over $5 million.

The Inspectors will:

  • Be selected by the Monitor who will devise an appointment process.
  • Act in the interests of all creditors.
  • Stand in a fiduciary capacity on behalf of all creditors.
  • Need to accomplish their duties on an impartial basis.
  • Are entitled to payment by following the payment structure for Inspectors set out in the BIA.
  • Help the Monitor in evaluating and admitting material claims.

    companies' creditors arrangement act
    Companies’ Creditors Arrangement Act

Laurentian expecting about 15 claims of more than $5M from creditors, court documents show

Laurentian reported that upon filing under the Companies’ Creditors Arrangement Act, it estimated its liabilities at $322 million. The categories of creditor groups are properly summarized by legal counsel for TD Bank recently in Court, indicated above.

The “bespoke” Claims Process approved by the Court is now underway. It is for all claims against Laurentian, but not including any form of compensation claim by any current or former employee. That type of claim has been defined by Laurentian and its Monitor as “Compensation Claims“. The Monitor advised the Court that it would soon come back to Court to get approval for a special process to establish the Compensation Claims.

The current Claims Process, not including any Compensation Claims, works like this:

  • Any creditor who has not received a Claims Package and who believes that he or
    she has a Claim against Laurentian, under the Claims Process Order must contact the Monitor
    in order to obtain a Proof of Claim form or visit the Monitor’s website.
  • Employees (and Former Employees) will not be receiving a Claims Package and do not need to complete a Proof of Claim at this time. Compensation Claims of Employees and Former Employees will be determined by a Court Approved Compensation Claims Methodology at a later date.
  • Three types of Claims qualify for this Claims Process: (i) Claims for amounts owing as at the date of Laurentian filing under the Companies’ Creditors Arrangement Act (Pre-filing Claims), February 1, 2021; (ii) Claims which arose as a result of the restructuring itself (Restructuring Claims); and (iii) Claims against senior management, Directors and Officers, the Board (D&O Claims).
  • In order to for Claims to be considered in the Claims Process, the fully completed Proof of Claim must be received by the Monitor no later than:
    • For Pre-filing Claims, 5:00 PM Toronto time on July 30, 2021 (Pre-Filing Claims Bar Date).
    • For Restructuring Claims, 5:00 p.m. (Toronto Time) on, whichever is later: (i) July 30, 2021, or (ii) the date that is 30 days after the date on which the Monitor sends a Proof of Claim Document Package to the Creditor with respect to such Restructuring Claim (Restructuring Claims Bar Date).
    • For D&O Claims, 5:00 PM Toronto time on July 30, 2021 (D&O Claims Bar Date).

No doubt the Monitor, the Inspector Group and Laurentian will be very busy sorting out all the Claims.

Public institutions shouldn’t be allowed to use bankruptcy protection to force through cuts

There has been an outcry from the public service community that public institutions should not be allowed to make use of Canadian insolvency laws like any other person or company that qualifies. I doubt that movement will get much traction.

I hope that you found this Companies’ Creditors Arrangement Act Brandon Blog interesting. If you are concerned because you or your business are dealing with substantial debt challenges and you assume bankruptcy is your only option, call me.

It is not your fault that you remain in this way. You have actually been only shown the old ways to try to deal with financial issues. These old ways do not work anymore.

The Ira Smith Team utilizes new modern-day ways to get you out of your debt difficulties while avoiding bankruptcy. We can get you the relief you need and so deserve. Our professional advice will create for you a personalized debt-free plan for you or your company during our no-cost initial consultation.

The tension put upon you is big. We know your discomfort factors. We will check out your entire situation and design a new approach that is as unique as you and your problems; financial and emotional. We will take the weight off of your shoulders and blow away the dark cloud hanging over you. We will design a debt settlement strategy for you. We know that we can help you now.

We understand that people and businesses facing financial issues need a realistic lifeline. There is no “one solution fits all” method with the Ira Smith Team. Not everyone has to file bankruptcy in Canada. The majority of our clients never do. We help many people and companies stay clear of bankruptcy.

That is why we can establish a new restructuring procedure for paying down debt that will be built just for you. It will be as one-of-a-kind as the economic issues and discomfort you are encountering. If any one of these seems familiar to you and you are serious about getting the solution you need to become debt-free, contact the Ira Smith Trustee & Receiver Inc. group today.

Call us now for a no-cost consultation.

companies' creditors arrangement act
Companies’ Creditors Arrangement Act

We hope that you and your family are safe, healthy and secure during this COVID-19 pandemic.

Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

Companies’ Creditors Arrangement Act

Call a Trustee Now!