Canada: iGaming potential yet to be unfolded

Canada

 

An upbeat ending for patient Canada

With the much anticipated enactment of Bill C-218, single-event sports in Canada has been legalized and the country is one step closer to fulfilling the potential of its online gambling market! The passage of C-218 into law is a denouement of the many attempts to end the restriction, so single-event sports betting can join parlay wagering in the country. This major regulatory change in legislation is considered to have a vital role in placing the market amongst the most lucrative and attractive ones globally.

Internet usage and mobile penetration

With a population of 38.23 million people, Canada exceeds 100 percent of mobile connections per capita. Specifically, the country marks 101.8 percent or 38.93 million mobile connections in total. As per the amount of internet users, 36.98 million people or 96.5 percent of the total population in the country are internet users.

 

 

An outlook on regulation

Besides the significant support from industry stakeholders, the passage of Bill C-281 was a weighty decision for Canada’s legislation regulators. Nonetheless, this big step forward for the country’s gaming landscape will give provincial and territorial governments the discretion to conduct and manage single-event sports betting in their respective jurisdictions. Additionally, it will represent a massive source of revenue for them, having in mind the reference of the Canadian Gaming Association to the colossal size of the before unregulated market in Canada. As of CGA, “Canadians enjoy sports betting because they are wagering approximately $10 billion annually through illegal bookmaking operations in Canada, usually operated by organized crime organizations. Additionally, more than $4 billion is wagered through offshore online sports wagering sites. Currently, only $500 million is wagered through legal provincial sports lottery products offered to Canadians, which means many people are betting through illegal and often dangerous means.”

 

For more detailed insights on the Canadian market download our free – Canada Betting Focus Industry Report 

 

Market sizing

According to a report prepared by PwC, based on statistics provided by H2 Gambling Capital, in both a low growth and high growth scenario, land-based revenues are expected to increase from CA$222.5 million to CA$591.5 million in Gross Gaming Revenue.

 

When it comes to the low-growth scenario, a moderate decrease of 20% is to be expected in online unregulated GGR, in contrast to a significant increase in online regulated GGR. Specifically, regulated revenues are expected to increase by a sheer 4468%, from CA$19.2 million to CA$877.1 million in GGR. On the other hand, high growth scenario forecasts a larger decrease in online unregulated GGR or precisely, 74.6% less, while the online regulated GGR is expected to increase from CA$19.2 million to CA$1.8 billion.

 

 

Market share constitution

Regarding market share constitution, the Pricewaterhouse Coopers points up that regulated sports betting market needs to be taken into consideration within the overall size of Canada’s regulated gambling market. This further accentuates the long-term potential of the sector.

According to the statistics, while sports betting revenues from regulated channels amounted to CA$222.5 million or circa 1% of Canada’s regulated market, casino revenues amounted to over CA$6 billion, or over 37% of total regulated GGR.

 

 

Overview

The passage of C-218 is a critical milestone for Canada’s gaming industry that will not only provide regulation, but will ensure player protection and generate economic benefits for the country. Besides the unregulated sports betting GGR average annual growth reaching CA$323 million in 2019, with everything stated, Canada has a bright future ahead and potential to become one of the most interesting and thriving markets globally.

 

For more detailed insights on the Canadian market download our free – Canada Betting Focus Industry Report 

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