The topsy-turvy sharing of the gaming tax field in Canada, 1970-2010

This paper is divided in three parts: first, we present the history of the federal/provincial relationship in the gaming field with special attention to the birth and death (at the tender age of four) of the federal Loto-Canada, as well as the attempts to reach agreements with the provinces regarding the presence of the federal government as implemented by its lottery agency in the gaming field. [...] The province of Québec was the first to enter the lottery market in 1970 with its own lottery corporation, Loto- 1. In Canada, the criminal code is federal and applies in all provinces 2. Of which the most common was the Irish sweepstakes. [...] Throughout the 1976-1979 period, discussions took place between the federal government and the provinces concerning the sharing of the lottery field and thus revenues between the two levels of government after 1979. [...] Both federal and provincial governments were satisfied with the elimination of direct price competition: this fulfilled the desire for cooperation sought by the former, and the desire for exclusivity in a specific market by the latter. [...] The main features of this 1978 agreement are summarized in Appendix A- 1. The abolition of Loto Select set the table for further cooperation between the federal government and the provinces.