A new report published on Tuesday by the Future of Sport in Canada Commission recommended that the federal government should use tax revenue from sports betting to fund sports in Canada.
However, it also identified growing concerns over the potential for competition manipulation amid “dramatically evolving pressures” created by sports wagering.
In its near-1,000-page final report titled ‘Transforming Sport in Canada: Time for Action’, the Commission detailed the challenges that face Canada’s sports system amid complaints from various corners over a chronic lack of funding from the grassroots to the professional level.
“Many participants argued that the federal government needs to diversify its sources of funding to sustain federal funding for sport,” stated the report. “They shared a variety of proposals during our engagement activities …
“Many participants noted the significant potential of sport-betting taxation revenues as a new source of funding if the revenues were to be dedicated to sport and physical activity … Lotteries were also often mentioned as a possible dedicated revenue source for sport in Canada.”
Commission notes Olympic Committee’s calls
The report noted that in 2025, the Canadian Olympic Committee (COC) and the Canadian Paralympic Committee recommended to the House of Commons Standing Committee on Finance that the federal government should use federal tax revenues from single-sport betting to “stabilize” the Canadian sport system.
“During our engagement activities, many reiterated this suggestion,” noted the Commission’s new analysis.
November’s federal budget announcement, the first under Prime Minister Mark Carney’s administration, did not allocate any new sources of funding to National Sport Organizations (NSOs), meaning it is now 20 years since the last time core federal funding for NSOs was increased.
Data provided to Canadian Gaming Business last year by the COC suggested that Canada invests 0.082% of its federal budget on sport – equating to 0.011% of its GDP.
In contemporaneous dollars on a per-capita basis, this translates to spending $8 per capita on sport, significantly lower in comparison to France’s $950, Italy’s $130 and the United Kingdom’s $25.
Canada legalized it, so it should use it
The Future of Sport in Canada Commission’s new report noted that during its consultations, it received numerous suggestions that sports betting revenue could be specifically allocated to support sport development, NSOs, research and educational programs and improve the accessibility of sport programs.
Another suggestion that came up was that it could be used to provide assistance to those who suffer “from the harms of sport betting”.
“We heard a range of opinions about the value and ethics of lottery and sports betting revenues being dedicated to sport and physical activity,” added the report. “A majority of participants expressed support for reinvesting new revenues from sports betting to support sport. Some had serious reservations about sport betting and vehemently believe that it should be banned. They noted concerns about the possibility of addiction and its effect on the well-being of Canadians.
“Others voiced reservations, but concluded that because sport betting was legalized, the potential revenues should be invested in sport.”
A tax on pro sports?
The report added that while participants noted a wide variety of other potential funding sources unrelated to gambling, “some stated that these revenues would pale in comparison to the revenue-generating potential of sports betting and lotteries”.
One of the proposals raised by some consulting participants was the idea of implementing a tax on pro sports as an alternative or additional answer, wrote the Commission.
In its conclusion, one of the ultimate recommendations that the Commission made to the federal government was that it should explore additional sources of government revenue to ensure it has sustainable means to invest in sport and physical activity, including tax revenues from both sport betting and tax revenues from professional sports.
Sports betting a ‘monumental’ issue
Even in the context of a months-long review process and a 952-page final report, the Future of Sport in Canada Commission, led by former Chief Justice Lise Maisonneuve, acknowledged that sports betting is such a complex issue that there simply was not enough time or resources to study it to the depth required.
“It was not possible to address all of the matters that participants raised during our engagement process or conduct an extensive review of them,” read a line in the report. “However, we wish to identify these issues so that they may be considered in future efforts to effect meaningful change.”
Issues that the Commission said it heard about but was unable to fully review included sporting competition manipulation and the “dramatically evolving pressures” introduced by sports betting.
“Participants involved in the Commission’s engagement activities also raised other areas to be considered in the Canadian Sport Governance Code, including anti-bribery and anti-corruption and awareness of emerging issues such as match fixing, gambling, and betting,” added the report.
