Today, Canada’s online iGaming market, which encompasses online casinos and sportsbooks, ranks among the top ten biggest in the world. With a gross gaming revenue of around 2.6 billion USD (3.42 CAD), the market ranks below France (3.8 billion USD) and Germany (3.65 billion USD) and right above Sweden (2.1 billion USD) and Spain (1.6 billion USD). So how did gambling become a popular activity in the country, which are the key factors driving the current market’s growth and how is the sector regulated?
A brief history of gambling in Canada
Canada’s relationship with gambling has a rich and diverse history that traces back to First Nations who are believed to have engaged in games of chance and skill. The first government-sanctioned gambling activity was introduced in 1969 with the Canadian government’s lottery creation. Over time, other provinces began to open up their own lotteries and casinos.
In 1985, the Canadian government amended the Criminal Code to allow for charitable gambling, and in 1989, the first Indigenous-run casino opened in Saskatchewan. In the 1990s, the number of casinos in Canada increased significantly, and sports betting was also legalised.
The early 2000s saw the rise of online gambling, which the government attempted to regulate with the introduction of the Canadian Gaming Association. However, online gambling remained largely unregulated until recent years.
Key factors driving the market’s growth
According to market research firm Ipsos, virtual gambling has exceeded the popularity of in-person betting. Before 2020, nearly 40% of Canadians would visit a brick-and-mortar casino at least once a year. That figure dropped to 26% in 2020, with more and more people playing casino games through a website or mobile application. iGaming activity is significantly higher in the Scotia, Saskatchewan and Ontario provinces. Nearly 35% of Ontarians, Ipsos reports, have played online casino games (slots, poker, roulette, blackjack, etc) compared to 30% of all Canadians.
The industry’s astronomic growth can be attributed to various factors, one of them being technological advancements. With the increasing availability of high-speed internet coupled with more affordable and powerful smart devices, iGaming platforms are more accessible than ever before. Not too long ago, nationwide lockdowns saw land-based casinos shut their doors to the public and shift their focus to digital platforms. As a result, existing consumers had to turn to iGaming platforms and, simultaneously, a new demographic of consumers confined to their homes gained an interest in online betting.
iGaming regulation in Canada
As per the Criminal Code of Canada, any form of gambling that is not licensed and managed by local regulatory bodies is deemed illegal. Canadian online gambling laws further state that online casinos operating from Canadian territory are, too, illegal. As such, Canadians have frequented iGaming sites based outside the country as the Criminal Code of Canada does not state the same about offshore platforms.
Presently, province-based governments regulate online gambling, and there are several overarching regulations, including the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and the Financial Transactions and Reports Analysis Centre (FINTRAC) standards.
Beyond this, individual provinces have their own regulatory bodies. In Ontario, for example, single-game betting is legal and sites such as FanDuel, PointsBet and theScore Bet among others are now accessible. iGaming Ontario casinos are becoming more common as the province is the first to build an open market. Regulated by the Alcohol and Gaming Commission of Ontario with the help of iGaming Ontario, the province’s market complies with strict KYC principles and AML standards following the nation’s iGaming landscape.
To conclude, Canada’s gambling has come a long way—from its origins amongst the First Nations to the proliferation of iGaming platforms in the 21st century. With time, the billionaire market will likely continue growing thanks to technological advances and a more open regulatory landscape.
