How the Shift to Online Influences the Betting Sector in Canada

The worldwide gambling industry has experienced substantial changes over the last few decades. Many bookmakers that started with traditional land-based betting locations, such as Bet365, eventually moved online. The Canadian gambling market changed after the legalization of single-event sports wagering in 2021. The government allowed provinces to decide whether to issue licenses for betting operators. This attracted many international companies, but only Ontario permitted foreign sportsbooks to operate.
Despite this, easy internet access and the overall legality of sports betting allow international bookmakers to serve Canadian users. Why have web-based sportsbooks gained popularity across Canada? What opportunities does this offer players? These and other questions will be explored in this article.
Why has the online betting market in Canada changed drastically?
Two major elements have driven the heightened activity of bookmakers: the organic expansion of the betting sector and the full legalization of sports gambling.
With technological progress and the emergence of mobile apps, users can now place wagers at any time and from any location. This shift has resulted in a decrease in land-based betting shops and the transformation of major companies. A notable example is Bet365. Initially, the company relied on a network of physical locations, but as the internet and mobile devices gained popularity, it redirected its emphasis toward digitalization. Bet365 fully transitioned online, becoming one of the largest betting platforms in the world.
This example reflects a global trend. Digital platforms offer far more possibilities than traditional betting shops: a wider selection of events, live wagering, instant payouts, and convenient deposit and withdrawal methods. Imagine you are in Yukon or Nunavut, where betting is only available at designated outlets. Yes, these government-run sites ensure payouts, but platforms like 1xBet or Unibet allow users to place bets without restrictions. There’s no need to visit a physical location to wager in a market with limited options. Sport Select, for instance, offers few betting choices and inconvenient payout processes. This is why Canadians from remote provinces prefer the ease of “gray” market betting sites.
Another major push toward online was the legalization of single-event betting in Canada. Regional operators actively entered the market, but they struggle to compete with international bookmakers. This is partly why many provinces do not grant licenses to foreign companies. However, even in a gray area, offshore sportsbooks attract Canadian users. Observing this trend, some provinces have adopted a more flexible approach toward foreign operators. Ontario has set a positive example, and Alberta plans to liberalize its betting market this year.
Why do bookmakers prefer the online format in Canada?
While the benefits for bettors are clear, why do operators favour the online format? There are several reasons:
- Access to a wider audience. Canada is vast, and many areas lack physical betting locations. Digital platforms enable bookmakers to reach residents of both major cities and remote regions. With internet access, users from any part of the country can place bets without restrictions.
- Reduced operating costs. Going online significantly lowers expenses related to renting space, hiring staff, and maintaining physical locations. Digital platforms require fewer resources for infrastructure, allowing companies to invest in development, marketing, and service improvements.
- Flexibility and user convenience. Digital platforms can feature sporting events from around the world, offer more wagering options, and personalize the user experience. Virtual sports betting, which provides instant results, has also gained popularity. This means internet bookmakers can offer exclusive services and features.
For betting operators in Canada, the online format enhances accessibility, streamlines business processes, reduces costs, and leverages advanced technology. In a competitive and increasingly digital market, this approach helps sportsbooks retain and grow their customer base.
The impact of online bookmakers on Canada’s economy and players
The launch of internet gambling in Ontario created approximately 7,000 jobs. While the number of employees needed for physical betting locations has decreased, web-based bookmakers generate new jobs in IT, marketing, cybersecurity, and customer support.
The legalization and expansion of online betting enable provinces to oversee operators and secure consistent tax income. In Ontario, where a regulated online gambling framework is in place, tax revenue has grown thanks to the success of licensed providers. In its first year, it reached CAD 1.5 billion. These funds are allocated to healthcare, education, infrastructure projects, and responsible gambling initiatives. Ontario has made significant progress in promoting responsible gambling, which we covered in a previous article.
To meet regulatory requirements, digital sportsbooks incorporate responsible gaming features, such as deposit caps, self-exclusion mechanisms, and time alerts. These measures assist players in managing their expenses and avoid gambling-related issues. Without government regulation, such protections would be unlikely, underscoring the need for local regulatory bodies.
In conclusion, online bookmakers have become an integral part of Canada’s economy. They generate substantial revenue and create new development opportunities. For players, they offer convenience, variety, and security, but also require responsible engagement. Striking a balance between economic benefits and player protection remains a key factor in ensuring the industry’s sustainable growth.
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