It has been almost 20 years since the launch of the first online casino, Internet Casinos Inc., while more than 2 000 gambling websites offering an array of gaming opportunities such as casino games, sports betting, bingo, poker and others have been estimated to be currently in operation. As 85 nations have already decided to give the green light and regulate online gambling, the industry’s popularity has gained traction considerably in regions such as Europe, Asia and South America.
A study by Merrill Lynch back in 2006 showed that the online gambling industry will probably reach its peek in 2015, with the global annual revenue rising to $528 billion.
In 2009 78% of all online gamblers were male, while the average age of internet gamblers internationally was 45 years.
As far as Canada is concerned, online gamblers belong to various groups in terms of education, have an average household income of $74 600 and an average household debt of $78 056, according to data by uleth.ca. The average age of Canada-based online gamblers is estimated to be 35.5 years. In addition, online gamblers are frequent users of the Internet and use it more often and for a wider range of purposes in comparison with their brick-and-mortar casino counterparts.
The Legal Side of Online Gambling in Canada
Until 2009 online gambling sites were prohibited to operate in Canada, but this did not prevent Canadian residents to bet at a variety of offshore sites. The Criminal Code of Canada does not consider online gambling as being an illegal activity, unless it is exercised in recognized areas of the code. At present, every province in Canada is able to permit, license and regulate its own online gambling sites. The Kahnawake Gaming Commission, operating inside Canada, is another entity to regulate online casinos in the country and to run their servers. The KGC is among the most preferred online casino regulators in other parts of the world as well.
A March 2010 survey conducted by Ipsos Reid concluded that almost 77% of Canadian respondents believe online gambling is legal, while 55% of Canadians support the idea that online gambling should be allowed as long as it is regulated by the government.
In July 2010 British Columbia, through the British Columbia Lottery Corporation (BCLC), became the first Canadian province to open an online casino to its residents. Early in 2011, British Columbia launched online poker, while it now intends to introduce mobile gaming as well.
In December 2010 Loto-Quebec introduced online poker and casino-style games for its residents, while in January 2013 Manitoba began to regulate online gambling activities, such as poker and casino-style games. The BCLC, Loto-Quebec and Manitoba Lotteries joined the Canadian Poker Network, which is the first regulated poker network in North America, enabling gamblers based in these provinces to play at the same online tables.
Since August 2004, Atlantic Lottery has been maintaining an online gaming site of its own (www.alc.ca), which offers a variety of online gaming options for Atlantic Canadians, including residents of Nova Scotia, aged over 19.
People in their youth tend to gamble at an increasing rates. A report by the Alberta Alcohol and Drug Abuse Commission (AADAC 2005) entitled Youth Gambling in Alberta: The Alberta Youth Experience Survey 2002 reported that earlier studies of youths in grades 7 through 12 in 8 Canadian provinces concluded that in the prior 12 months as few as 41% (in Alberta) to as many as 78% (in Manitoba) of youths had taken part in gambling activities.
Youths also tend to gamble online at a higher rates than adults. The Nova Scotia Adult Gambling Prevalence Study conducted in 2007 concluded that a mere 1.6% of residents there have gambled online. Another study, on the other hand, the Nova Scotia Gaming Corporation’s (2006) survey Decoding Risk: Gambling Attitudes and Behaviours Amongst Youth in Nova Scotia showed that people in their youth have tried gambling online using either real or virtual money as follows: 19% of people aged between 15 and 17; 15% of people aged 18; and 12% of people aged 19-20. The same survey revealed that the majority of respondents (67%) feel neutral or slightly positive about gambling as an activity, 76% believe that ”gambling is harmless”, and 54% believe that ”gambling doesn’t hurt anyone”.
So far, not a single person in Canada has been charged with the crime for gambling online, thus, the latter will not likely lead to legal issues. If you are not quite sure whether betting at a particular online casino is permitted, then a little bit more research might be helpful. Even if there is a particular law, postulating that a particular gambling website is not allowed to operate in the region where you are based, truth is that the majority of gambling sites operate outside of jurisdiction. Thus, to shut all of them down is an impossible task, if there is no structured legislation.
The Future of Online Gambling in Canada
The online gambling industry has indeed registered a considerable growth and produced remarkable revenues during the past decade, which suggests that regulation is more than necessary. The relevant question is whether the federal or provincial governments will take action and regulate online gambling sites, or that matter will be left to non-governmental organizations.
According to the Global Gaming Outlook, released by PwC, Canada may remain ahead of the United States in regulating the online gambling industry on a state level, while collaboration between provinces may continue gaining momentum. These measures will spur growth further and lure more onshore and offshore providers to the Canadian region. Apart from local operators, the Canadian online gambling market may attract US companies managing land-based casinos.
There are other opinions, however, which point to no sensible change of what we observe today as a tendency. Supporters of the idea claim that no change to the legal status of online gambling in the Criminal Code of Canada will be present without a fierce opposition from political entities whose economic interests would be threatened by further liberalization.
