June 22, 2021, marks a significant point in Canada's online gambling history as the Canadian Senate approved Bill C-218, and the rest is now history in the making. Online gambling and betting fundamentally changed, and each province could decide how to approach it. And while provinces like Alberta and Quebec have leaned more towards a more strict and regulatory side, allowing only a few selected state-owned portals for online gambling, Ontario has opened its doors far and wide and started a rather brash pioneer project.
After three years it's safe to say their gamble paid off and is a roaring success, which other provinces are now looking to replicate.
As experts believe, Canada loses about $14 billion yearly to offshore casinos and the associated revenue from taxing such a lucrative industry, so any advances in that area can lead to a better lifestyle for Canadians. Gamers in Quebec can still access any casino listed by Techopedia editor Sergio Zammit, and enjoy their welcome bonuses and captivating gameplay on a budget as low as $5, which usually isn’t an option at land-based casinos in the province.
The online gambling and betting industry could generate significant tax revenue for any province that follows Ontario's example, as well as more jobs. But what is the secret to Ontario's success? Provinces like Alberta and Quebec only allow government lottery corporations to offer online betting and gambling through limited channels, but Ontario has allowed the private sector to provide such services by getting licensed with the governing body iGO (iGaming Ontario). Ontario's decision has opened the floodgates, and a great number of private companies have opted to dive right in, and the results speak for themselves.
It seems that a far less regulated market, but still within the laws and oversight like Ontario, performs much better than a tightly structured one. Ontario regulations remain reasonable, and within the industry boundaries, the tax rates are around 20%, and anyone can apply with the iGO organization. Unlike Ontario, which has adopted and gone the modern way, and its players can even access crypto gambling, players from other provinces have limited options. Even with such wide acceptance rates, players are still protected and have fail-safe mechanisms in place, as each private operator must obtain a license from the governing body.
Lack of government regulation does not lead to chaos, as those who were against Ontario's practices were saying, as rules and regulations still exist. Each province can use the tax generated for various state programs like healthcare, education, public services, etc, but it is easier to fund programs by taxing the $2.7 billion made from online gaming so far in 2024. The Ontario case shows that even a very liberal approach to online gambling does not create cannibalization between companies. More competition is always beneficial for the end customer, as companies must compete between themselves to offer better prices, services, and features and to build their brands. When customers have more choices companies must work harder to keep their clients.
June 22, 2021, marks a significant point in Canada's online gambling history as the Canadian Senate approved Bill C-218, and the rest is now history in the making. Online gambling and betting fundamentally changed, and each province could decide how to approach it. And while provinces like Alberta and Quebec have leaned more towards a more strict and regulatory side, allowing only a few selected state-owned portals for online gambling, Ontario has opened its doors far and wide and started a rather brash pioneer project.
After three years it's safe to say their gamble paid off and is a roaring success, which other provinces are now looking to replicate. As experts believe, Canada loses about $14 billion yearly to offshore casinos and the associated revenue from taxing such a lucrative industry, so any advances in that area can lead to a better lifestyle for Canadians. Gamers in Quebec can still access any casino listed by Techopedia editor Sergio Zammit, and enjoy their welcome bonuses and captivating gameplay on a budget as low as $5, which usually isn’t an option at land-based casinos in the province.
The online gambling and betting industry could generate significant tax revenue for any province that follows Ontario's example, as well as more jobs. But what is the secret to Ontario's success? Provinces like Alberta and Quebec only allow government lottery corporations to offer online betting and gambling through limited channels, but Ontario has allowed the private sector to provide such services by getting licensed with the governing body iGO (iGaming Ontario). Ontario's decision has opened the floodgates, and a great number of private companies have opted to dive right in, and the results speak for themselves.
It seems that a far less regulated market, but still within the laws and oversight like Ontario, performs much better than a tightly structured one. Ontario regulations remain reasonable, and within the industry boundaries, the tax rates are around 20%, and anyone can apply with the iGO organization. Unlike Ontario, which has adopted and gone the modern way, and its players can even access crypto gambling, players from other provinces have limited options. Even with such wide acceptance rates, players are still protected and have fail-safe mechanisms in place, as each private operator must obtain a license from the governing body.
Lack of government regulation does not lead to chaos, as those who were against Ontario's practices were saying, as rules and regulations still exist. Each province can use the tax generated for various state programs like healthcare, education, public services, etc, but it is easier to fund programs by taxing the $2.7 billion made from online gaming so far in 2024. The Ontario case shows that even a very liberal approach to online gambling does not create cannibalization between companies. More competition is always beneficial for the end customer, as companies must compete between themselves to offer better prices, services, and features and to build their brands. When customers have more choices companies must work harder to keep their clients.
And Ontario's example is a testament to how sometimes more is better. In Quebec, their local Loto-Québec is currently operating a monopoly, and a tighter grasp on the market can only be harmful in the long run. Quebec and other provinces can still benefit and copy Ontario's case study. The change can easily happen as all it takes is a shift in the regulatory mindset. A more liberal approach to online gambling and betting, which Ontario has, can still come with local regulation and government oversight like Quebec has. Instead of concentrating online gambling services to a single spot, delegating and allowing others to offer the same services, but other local rules, can be more profitable, as Ontario has shown.
The call for a more liberal approach should happen soon, as channelization remains the other vocal point that Ontario has almost successfully eliminated. Simply put, when customers can find what they need for their online gambling needs, they will resort to off-shore variants, illegal activities, or travel to a neighboring province that can offer what they seek. Making drastic changes towards online gambling was made thanks to the Canadian Senate, but it's now up to each state to keep and appreciate its local players. Ontario's channelization has thus far motivated 86% of players to use regulated sites, from a myriad of companies that entered Ontario's online gambling space.
Playing under a licensed casino is safe and beneficial for the players and profitable for the company and the state, and the more companies there are, the better the outcome for all parties involved. Because lottery corporation websites can be slow to adopt and are not as versed to satisfy the fast modern gambling market, opening up to the private sector could put less strain on governing resources, while also helping financially during troubling economic times. As Ontario continues to be a shining example of online gambling done right, other provinces should follow in Ontario’s footsteps and copy their case studies. The sooner, the better for all Canadian players.
Comments