While the federal Code is the applicable prohibitionist law, all regulations (and regulatory bodies) are provincial, with one exception - pari-mutuel betting on horse racing, which is regulated by the federal Canadian agency Pari-Mutuel. However, this law has many critics, as it is believed that the Canadian sports betting market can generate $25 billion a year. [11] With the increasing number of online betting exchanges, betting exchanges are now providing free bet offers in an attempt to lure customers away from the competition. These free bets are generally based on the size of the deposit made into the gambling account. For example, if a customer deposited £20, the betting exchange would deposit an additional £20 for the customer to use. [13] Free bet rules vary depending on the betting exchange. Some bookmakers have even taken to using betting exchanges as a way of laying off unfavourable bets and thus reducing their overall exposure. This has led to insecurity from some TABs in Australia, state-run betting agencies that attempted to deny Betfair an Australian licence by running unfavourable ads in the media regarding the company.
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