Since the introduction of gambling in Canada, the country has remained an enchanting location for punters. The lack of regulations and a fast-growing market are some characteristics that define this industry. The ongoing changes are transforming the iGaming industry to make it even more fruitful for players.
Here’re a few of the most interesting facts about the Canadian iGaming industry.
It’s Transforming from A Gray Market to A Regulated Market
The Canadian iGaming industry has operated like a grey market since its founding in the 1960s. Essentially, Canadian law hasn’t been clear concerning gambling activities.
The country didn’t have any law to prosecute rogue foreign iGaming operators. Interestingly, Canadians have always been free to seek iGaming services from foreign operators. The haziness of the law made it challenging to establish the legality of foreign operators. The status quo is now changing.
Canada has made significant progress in its efforts to catch up with gambling markets in the US and Europe. iGaming is just as popular in Canada as in Europe, but Canada has been slow in regulating the industry.
The passing of Private Bill C-218 marked a significant turn of events. This law allows the provinces to monitor and operate gambling activities within their jurisdiction. Previously, Canadian firms could not operate in the country since they didn’t have legal backing. Punters in Canada can expect the iGaming industry to be heavily regulated.
Foreigners Largely Operate It
Although the iGaming industry in Canada is well established, foreigners still run the show. The lack of a law that allowed Canadians to provide gambling activities left the market to foreigners. Consequently, the government has been missing out on significant revenues from the industry.
The provincial governments, led by Ontario, have initiated changes that could see locals enter the market. In Ontario, AGCO will now register operators and establish operational standards. The regulation will allow the government to acquire a share of the revenues from iGaming activities.
Foreigners still dominate the market, but things may soon change. As the market continues to open up, more locals could join and dominate the iGaming industry.
Its Regulation Apes the European Model
Ontario’s iGaming regulatory framework resembles the model that is largely used in Europe. In Europe, iGaming is tightly regulated, and operators have many restrictions. European markets also restrict iGaming advertisements, perhaps to promote responsible gambling. This heavy regulation is different from the US, where operators enjoy more freedom.
The recently passed Canadian legislation takes after the European model. Each of the provinces will adopt its own regulations to control the industry. Despite the tighter restrictions, there won’t be any restrictions on operator numbers in a jurisdiction.
Again, this differs from the situation in the US. The US only allows a certain number of operators for a specific population.
It’s Likely to Experience Significant Growth
Now that local governments are embracing iGaming activities, punters can expect many changes. The local governments will likely encourage the introduction of new online casinos in Canada. You can also expect improvements in iGaming technology. The resultant increased competition will further prompt operators to give better offers.
All these factors will drive significant growth in the Canadian iGaming industry.
The Canadian iGaming industry is unique. Despite being operational for decades, the government remained reluctant to regulate it. The recent legal changes are set to change the situation. Soon, these unique aspects of the industry will resemble the European model.
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