Why Online Gambling Is Becoming a Bigger Regulatory Question in Canada

Online gambling has grown rapidly since Ontario became the first province to launch its own iGaming market in 2022, following hot on the heels of federal-level legalization that was confirmed just a year earlier. Within three years, annual wagering within the province closed in on $90 billion, representing about $2.9 billion in revenue generated by the industry, and significant tax income as well.

All this should explain why there’s increased regulatory scrutiny and debate around online gambling. There are actually several facets to the discussion and questions that remain unanswered, so let’s dissect what’s driving conversations at the moment.

Squashing Grey Market Operators

As mentioned, Ontario’s iGaming market is thriving, and there are lots of locally licensed and regulated sites that let locals play casino slots here. The problem is that grey market operators, based overseas and working outside of Canada’s regulatory framework, still serve domestic players.

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The twofold issue with this is one of a lack of regulatory oversight and the inability to recoup tax revenues from grey market iGaming platforms. Some argue that stricter rules need to be created to disincentivize Canadian gamblers from using any casino service that’s licensed and hosted elsewhere. That’s a fine stance in theory, but the practical reality of enforcing such changes might make them less viable to implement in the first place.

Addressing Advertising Concerns

One of the main controversies around Canada’s online gambling market relates to how casino operators are able to market their services to prospective customers. Early campaigns, including tie-ins with current and former sports stars in particular, were criticized by campaigners, and regulations tightened to prevent this type of endorsement as a result. However, some still believe more needs to be done to reduce the marketing reach of iGaming campaigns, for fear that it will end up capturing younger audiences and increase problem gambling across the board.

In other markets, like Europe, there are firmer guidelines on the promotion of gambling activities, so it’s possible Canada will follow suit. It largely depends on a combination of the lobbying pressure exerted upon regulators and whether other provinces beyond Ontario launch their own locally licensed commercial iGaming markets.

Improving Player Protection

The final thing regulators are having to contend with in Canada’s growing online gambling market is how players are protected, which is fundamentally more difficult away from land-based casinos because it’s harder to track and enforce things like self-exclusion programs and deposit limits when there are so many sites and services involved.

Again, there’s pressure from campaigners to adopt a model closer to what’s seen in places like Europe, where in Germany recent regulatory changes mean online casinos are forced to offer far smaller maximum bet amounts for slots, for example.

Canada’s casino regulators have no choice but to confront these talking points and find a path forward that’s right for online casino brands and their customers. The fast-growing market is a tax revenue dream, but should not be pursued at the expense of public health and financial stability.