Are you a casino player and sports betting fan in Canada? The Canadian sports betting industry alone could be worth $25 billion annually. (Photo by Tim Hart on Unsplash)
Recent documentation by Poland, one of Canada’s news sources for the sector of online gambling, has recently reported that sports betting could well be worth an estimated $25 billion annually, both in retail and in online betting within the Canadian gambling market.
PlayCanada believes that once the industry has fully matured, and the market has explored every opportunity, it could well generate billions annually. And at the same time, would contribute 9-figures in fees and taxes per year. Having a decentralised market will certainly help, as it has done in the US. The benefits of a decentralised market mean that a province or territory can fine-tune sports betting after taking it on and make their own standards by implementing regulations and guidelines.
Decentralisation has created murmurs in the industry, leaving people to wonder about how the market could look in the future. Right now, it is a common belief that Canadian sportsbooks are the biggest single business opportunity that has largely remained untouched throughout the entirety of North America. On top of this, there is the iGaming industry.
At this point in time, the market mostly consists of overseas casinos with the safest and most trustworthy of those using trusted sports and casino aggregator platforms such as SoftSwiss and White Hat Gaming and sportsbooks/casinos licensed by the Malta Gaming Authority (MGA). The MGA license in particular covers Canadian players under EU online/e-comm business laws and gives players access to free mediation services should the player feel that the casino or sportsbook is not resolving issues fairly a.k.a. casino Vs player dispute resolution.
The challenge for the Canadian companies opening online gambling operations is to offer the same scope of online casino games and sports betting markets as the European operators that currently accept players from Canada. That’s a challenge unlikely to be (a) understood and (b) met by early inceptions of Canadian licensed/governed online gambling sites. There is then the matter of the affiliate systems that will be put in place, which is big business. That said, the future does look bright, and we should at least see some of the European companies start offering their expertise in Canada, which is already evident since Swintt, a European software provider recently expanded its global footprint by offering its expertise in Canada via a partnership with a domestic company – iBet.
Current estimations are that by the end of the third year of operations, the industry of sports betting in Canada is likely to see:
- A $25 billion annual figure in wagering, of which over 80% would come from the operators of online sportsbooks.
- $2 billion, or more, in operator revenue-creating annual tax contributions from between $200million, up to $400 million, depending on the structuring of the regulations.
- Ontario is thought to be the most lucrative Canadian market opportunity, as it has the capacity to generate an estimated, $11.1billion through wagering, and over $800 million for operators’ revenue, per year – making it a North American market powerhouse.
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