Online gambling will become a 93bn dollars industry by 2023, growing at an unprecedented rate. Various industry estimates set the pace of online gambling at a CAGR of 11.94%.
To understand how big those numbers are, just think about sporting associations like the NFL who are growing at a measly 6%! If any industry is growing at twice that rate, it surely is doing well.
Where Is The Growth Coming From?
Europe is by far the biggest market for online gambling even today. In 2019, the UK contributed to about 30% of online gambling revenues, whereas Germany was a distant second at 11.4%
However, heft does not equate to growth. North America is catching up to the European biggies with a blistering CAGR of 14.78%. But North America itself is pretty big, so we dove into what is happening in each of the countries therein:
Online Gambling in Canada
Canada is one country that is always a puzzle for online gaming followers and enthusiasts. While there is huge potential because a large proportion of the population is involved in one or the other form of gambling, the online gaming scene is a bit unregulated at the moment.
There are many well-known online gambling sites that people are using every day in Canada. If you are looking to start gambling yourself, we would advise you to first check various website reviews and only then choose the site to sign up with (Source: https://www.basketballinsiders.com/canada/online-casinos/).
There are many factors that are taking Canadian online casino gambling to new heights of popularity. Let us talk about some of these factors below.
History of Betting In Canada & Bill C-218
For many decades, Canada allowed parlay betting (multi-event betting), but this is not the kind of betting that gets you excited for sports events or even casino gambling.
Currently, the Canadian Gaming Commission looks after online gaming in the country. It takes care of any legal issues and also collects information.
In Feb’21, Canada passed Bill C-218 in the House of Commons. This bill brings in single-event sports betting under the ambit of the law. There are several reasons why Canada opted to pass this amendment:
- To prevent criminal elements from profiteering by using illegal wagering. The Canadian government estimated that this betting amounted to close to $10Bn in 2019
- To give greater protection to the players.
- To create employment opportunities.
- Another issue was that the neighboring states of the US like Pennsylvania, New York, Michigan, and Illinois have all legalized gambling, which meant that Canadian states and provinces were losing out on tax revenue.
The impact of bringing in this bill is to significantly widen the market for legal gambling in Canada, giving the Canadian gambling industry a major push.
While the bill does not legalize online casinos operating out of Canada, there is no law that stops Canadians from betting online. Thus, the new bill is likely to increase the number of ways players can gamble online and bring in a wider audience.
How Big Is The Online Betting Market In Canada?
Nearly 75-85% of Canadians are involved in gambling of some form, with provinces such as Saskatchewan and Nova Scotia having even higher penetration. Canadians wager nearly $15Bn every year, as per a Deloitte report.
Bill C-218 is already giving a huge boost to the Canadian online gambling market. The market is currently estimated to be close to $4Bn, run primarily through offshore online gambling sites.
Impact Of Covid-19 On Gambling In Canada
A sample study of 3,449 participants who were involved in the AGRI National Project has revealed startling results. With physical casinos becoming closed during the pandemic, nearly 17% of the gambling respondents moved to online gambling! Perhaps the only thing stopping the march of online casinos during the pandemic was internet throttling by ISPs.
This meant that nearly 50% of the overall gambling respondents were involved in online gambling due to the pandemic. This has also given a significant boost to the overall growth of the Canadian online gaming market.
Currently, the United States allows licensing for online bookmakers in Nevada, Delaware, Pennsylvania, and New Jersey. Online casinos are becoming a hot property in the gambling market in the US because of two reasons: the large variety of live dealers available and real-time feedback which gives players a sense of being in an actual casino.
But don’t take my word for it: the numbers from the American Gaming Association’s commercial revenue tracker speak for themselves. With a 644% growth in YTD revenue till Oct’21, iGaming is the fastest growing form of gambling in the country, all set to cross $3Bn in this year.
Mexico is similarly another smaller yet fast-growing market for online gambling in North America. The market is currently growing at a blistering pace of 33% CAGR, which presents a good opportunity for gamblers as well as operators.
Mexico already has a burgeoning gambling business, which was somewhat hit by the pandemic last year. They are bringing regulations to include online gambling into the fold of the gambling sector, which will increase participation even further.
If there’s one market to look out for in the world of online gambling, it’s going to be Canada. With a huge population already involved in gambling, a more open governmental regime accommodative of single event betting and the pandemic causing a big shift towards the online casino model, the Canadian online casino gambling market is set to grow to new heights in the next few years.