Canada has one of the largest percentages of internet users in North America. 33.3 million people, up to 90% of the population have access to reliable internet. Thus, it comes as no surprise that 75% to 85% of all Canadians dabble in some sort of online gambling.
With the number of internet users expected to reach 35 million by 2023, Canada is poised to be one of the top markets for online casinos in the world. With its flexible gambling laws, high user accessibility, and no taxation policy (conditional), it represents an ideal for casino experiences everywhere. With such a strong environment for growth, it may surprise you that gambling in Canada was not legal till 1969.
Gambling in Canada
Brief Overview
Before this, only charity-based betting was allowed, and that too, only for horse racing and lotteries. Big changes occurred in 1985, with a revision of the Canadian Criminal Code. This amendment reformed the legislative policy to allow the provinces to have the final say in their gambling laws.
While the federal government would oversee the structure, the fine details would be in the hands of the provincial governments. This system is operational to date, with the federal Canadian Gaming Commission acting only as a general administrator to the states.
Recent Developments
Ontario’s gambling regulatory body, the Alcohol and Gaming Commission of Ontario also announced some big news recently. In June 2022, the organization released a statement approving 36 online operators’ licenses to operate in the province. This move signals a significant change in Canada’s stance towards online gambling.
To date, only the native American reserves and bodies like the Kahnawake Gaming Commission had the authority to host online gaming servers in Canada. But since the announcement, at least 18 of the operators are already up and running. Such a move signals major changes for the gambling industry in Canada.
However, these advancements could not be coming at a better time, as Canada currently ranks #8 among the world’s top gambling nations. Online gambling in the country started in the mid to late 90s, but the user rate has boomed only in recent years. On average, a Canadian citizen will spend $824 annually on gambling. This rate is more than the combined average for the UK and the US. Since the legal age for gambling is 18-19 years, any legal adult can play on these platforms.
According to the Canadian Internet Registration Agency, 54% of internet users spend more than 5 hours online daily. As the time spent online increases so does the popularity of virtual casinos. The Canadian market, as a result, has become a global model of innovation. Casinos here implement state-of-the-art techs like VR and AR to increase customer appeal.
Blockchain has also made data storage easier and more secure. With CoGRA-certified safety features in most casinos, online gambling in Canada is safer than ever. Because of these changes, Canadian players are also shifting away from primarily classic gambling towards innovations like esports betting and social gambling.
Why are Lotteries Popular in Online Casinos in Canada?
The most popular forms of virtual gaming in Canada are lottery and raffle. Slots come a close second, followed by classic casino games like poker, roulette, and blackjack. Additionally, different provinces have different preferences for online gambling.
Factors like local law also influence these preferences. For example, casino games run supreme in BC and Ontario where betting on online slots is prohibited. However, the government also does not regulate betting on foreign casinos, making Canada a global consumer of these services.
Statistics show that Canada is a huge consumer of lotteries. Jackpots are a hit with players in all 10 provinces and 3 territories. This popularity arises from the fact that lottery/casino winnings in the country are non-taxable. Players can keep 100% of their jackpot if they are not professional players by occupation.
Only players for whom online gambling is an income source are liable for taxation. Casual players do not pay any income tax. Additionally, the Criminal Code of Canada is relatively lax on online casino gambling. No citizen has been prosecuted to date for charges related to online gambling.
Online Casinos in Canada: Licenses
The country is only now opening up to offer licenses to online gambling operators. For this reason, some of the most popular casinos in Canada operate and are regulated under foreign licenses.
The prestigious permits include licenses from the Malta Gaming Authority and the UK Gambling Commission. These are preferred and trusted by Canadian gamblers as they offer fair gambling. Data protection and user safety are also enhanced in sites using these licenses. Meanwhile, the operators that are based in Canada are recognized by the Canadian Gaming Commission. But most of these are confined to special territories like Native American reservations.
Gambling in Canada: Past and Future
Gambling in Canada has been a part of the local culture for a long time. The Native Americans indulged in this pass time using sticks and other items. However, gambling as we understand it today can be traced back to the John Cabot voyage.
The 1497 expedition introduced the population to playing cards, which would eventually evolve into games like poker and blackjack. Since then, gambling, and particularly, online casinos have become a major part of the Canadian economy. The industry reported a profit of over $3 billion in 2021 alone. And with significant legislative advancements like the aforementioned Ontario bill, Canada is posed to be a global model for top-notch online casino experiences.
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