Online gambling is experiencing tremendous growth in Canada now that provinces can regulate the industry. Ontario is leading the race to legalize some of the world’s best remote betting companies.
Between 2022 and 2023, Ontario licensed over 40 betting operators and generated $1.4 billion from the sector. More provinces are expected to regulate the industry, boosting Canada’s economy immensely.
In this article, we’ll take a closer look at the economic landscape of iGaming in Canada. Let’s dive right in.
Investment Outlook
In the past few years, tons of gambling companies have expressed an interest in investing in Canada’s online gambling space. We’re talking about major brands like FanDuel, DraftKings, LeoVegas, Caesars and 888 Holdings.
Most of these companies have already applied for licenses to operate in Ontario. They’re also waiting for more provinces to commercialize betting to expand their markets.
Some gambling businesses have not yet acquired licenses to set shop in Ontario. However, they use foreign licenses to target players in regions like Alberta, Quebec, Nova Scotia, and Manitoba.
Presently, regulatory concern is the only thing stopping more operators from investing in the Canadian mobile betting space. Ontario can’t accommodate every company out there. But once the entire country embraces commercialized gambling, investors will look to invest money in these areas:
- Sports betting
- Online Casinos
- Esports betting
- Online bingo
Betting Handle
Research firm Statista estimates that Canadians wagered $14 billion throughout 2023. They also opened 1.6 million online gambling accounts in Ontario, a million of which are active to date.
Truth be told, Canadians didn't get into online gambling a year ago. Before the government legalized single-event betting in 2021, bettors were playing real money games through offshore casinos.
Online polls show that nearly 20 million Canadians participate in online gambling annually. Men wager more than women do—they account for 63% of all online wagers.
The average casino fan spends $80 every month, a lucrative amount for casinos eyeing the Canadian market. High-stakes players wager a lot more money. And for some operators, the high-end market is where the most money is made.
Generally, casinos make the most amount of money from slot machines. Globally, slots generate $100 billion each year. But this includes money generated from land-based operators.
Technological Growth
When you think about it, online gambling would never have amounted to anything without advancements in technology. The industry relies on technology to improve game development, create intuitive websites, and target customers more effectively.
The first online casino launched back in 1994. Over the years, the sector has embraced countless technologies. Think of mobile gambling, Virtual Reality, Artificial Intelligence, and cryptocurrencies.
Cryptocurrencies, in particular, are disrupting multiple facets of online gambling. First, they're changing how people deposit money in casinos. You no longer need to reveal your name and credit card number when sending money.
With Bitcoin, you only need an address to send or receive money. Everyone has a unique crypto address that's encrypted to keep your money safe. Today's crypto casinos support a variety of coins.
You can use Bitcoin, Ethereum, USDT, or a few more cryptocurrencies at the casinos highlighted by https://www.cryptocasinos247.io/. Most of these sites are safe and trustworthy. And they have generous bonuses for new customers.
Job Opportunities
More investors in Canada means more employment opportunities for Canadians. Interestingly, foreign companies investing in Canada have been paying better than most local businesses.
Online casinos and sportsbooks can afford high salaries for their employees because they have low operational costs. A fully-fledged mobile sportsbook can run with fewer than 50 employees.
Considering online gambling companies generate millions of dollars every year, seeking employment in the iGaming space is a great idea. Gambling businesses require all the jobs other online businesses need.
For example, they employ managers, accountants, marketers, programmers, graphics designers, and customer service agents. Sportsbooks also need bookmakers while casinos hire dealers, and croupiers to oversee table games.
The list of employment opportunities is greatest at casinos that also provide sports betting. If the companies also have many digital marketers, they need special talents knowledgeable in creating blogging, social media, YouTube, and Twitch content.
Revenues and Taxes
Online gambling operators generate revenues for Canada in two ways: direct and indirect revenues. Direct revenue includes license fees paid to regulators like Ontario and the Kahnawake Gaming Reserve. It also involves direct tax paid to provinces and the federal government.
In 2022, Canada generated $3.8 billion from licensing fees and annual tax from remote gambling providers. This was triple the amount generated from the same industry in 2021.
Indirect revenue centers on money generated through marketing and advertising. It also focuses on income generated through the gambling sector’s cooperation with other industries.
For example, online casinos keep software providers alive. These companies pay taxes and license fees to the country. It also works with banking providers, website designers, and other firms that help boost the Canadian economy.
Then there’s the money paid out to workers as tax. Betting providers in Ontario employ some 12,000 people. Now, think about all the money the government makes from these workers through taxation.
Future Economic Landscape
All signs show that online gambling will experience growth in the coming years. Experts cite expected commercialization at a provincial level as the number one reason for the growth of iGaming in Canada.
Another reason online gambling will expand is that it is now simple to access. In the past, you needed to find a trustworthy offshore casino to play slots online. Even then, you risked losing your money to fraud and unreliable operators.
Now, you can play slots, roulette, or poker at online casinos located in your province. Increased marketing by prominent figures is yet another reason for the growth of iGaming in the country.
Online gambling in Canada is projected to grow by double digits in the next five years. It could hit a valuation of $10 billion by $2025. If all the provinces embrace privatized gambling, the sector could easily become a $20 billion industry in a decade.
