Canada: Federal sports betting legislation stalls as Trudeau announces resignation and prorogue parliament

The future of Canada’s federal sports betting legislation has been thrown into question following Prime Minister Justin Trudeau’s decision to resign and prorogue Parliament until March 24. This development halts all legislative activity, including Bill S-269, a proposed national framework for regulating sports betting advertisements.

Bill S-269, sponsored by Senator Marty Deacon, aimed to address concerns about the volume, content, and timing of sports betting ads across the country. The bill had successfully passed the Senate in November and was awaiting its First Reading in the House of Commons. However, prorogation means the bill is now effectively terminated and must be reintroduced in the next parliamentary session to move forward.

The legislation sought to standardize sports betting advertising regulations by engaging with provincial lawmakers, First Nations, and gaming regulators. The initiative was designed to bring clarity to a rapidly growing market, where advertisements for sports betting have proliferated since Canada legalized single-event sports betting in 2021.

Despite its urgency, the bill faced significant delays due to parliamentary gridlock between the minority Liberal government and the opposition Conservatives. This impasse, combined with Trudeau’s decision to prorogue Parliament, has left its future uncertain.

Under Canadian law, bills that have not received Royal Assent are considered terminated during prorogation, unless reintroduced under specific conditions.

Mark Harper, head of emerging markets at BVGroup, said that the bill's odds of passage remain unchanged. “I don’t think this changes the pathway for the iGaming-advertising bill, just delays it, obviously,” he told CDC Gaming.

Prorogation, which allows the Liberal Party time to conduct a leadership contest following Trudeau’s resignation, also halts discussions on other legislative priorities. Trudeau described the move as a necessary step to break months of parliamentary paralysis. 

The legislature had been scheduled to reconvene on January 27, but now all parliamentary business will be on hold until late March.

The delay could deprioritize the gambling bill in favor of more pressing political and economic issues when Parliament resumes. Observers note that the legislative environment will likely shift dramatically, depending on the outcome of the Liberal leadership race and the possibility of an early federal election.

With the Conservatives openly opposing many Liberal policies, including their approach to gaming legislation, the bill’s revival could depend on the priorities of the next government. Should the Conservatives secure a majority in an anticipated early election, gambling regulation may take a backseat to other political agendas.

Despite these uncertainties, discussions on other aspects of Canada’s gaming sector remain active. Notably, the Ontario Court of Appeal continues to deliberate on the legality of international liquidity in the province’s gaming market, a matter unaffected by prorogation.