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The online gambling industry is booming around the world and Canada is no exception. While the law doesn’t permit online casinos on Canadian soil except for some territories, offshore casino sites can freely offer their services to Canadian players. It’s a win-win for all the parties involved, and one of the favorite pastimes in the country.
On a global scale, Canada ranks on the 8th spot out of countries which spend the most money on online gambling. In translation, online casinos are significantly popular there, especially in regions such as Alberta, Saskatchewan, British Columbia, and Ontario. The latter has just passed a reformed law that legalizes online gambling, bringing some much-needed revenue into the state.
Things are going great for online casinos in Canada right now and we have the numbers to prove it.
Where do Canadians Spend More – Home or Offshore Casinos?
The numbers from the past year are in and they’re staggering. Canadians love to gamble on the web, having spent at least C$4 billion annually for the past couple of years. That’s nothing in comparison to the C$16 billion spent in local casinos, so it’s pretty obvious that Canadians love to gamble. The Canadian Gaming Association recently released the latest report on online gambling in Canada, which states that the industry brings in over C$15 billion every year to the budget. Here’s a breakdown of the most important facts:
- Gaming is the largest segment in Canada’s entertainment industry;
- It generates C$9 billion yearly to fund government community services and programs;
- Direct supports over 130,000 jobs.
Online gambling is a booming business in the country, which—considering Canada’s history with gambling—should surprise no one.
Canada’s history with gambling starts back before the first European settlers. A game known as Slahal was played with sticks and stones in the Pacific Northwest, and it might have its roots deep into the Ice Age. Much later, dice games were illegal under British law, yet Slahal lived through the dark times, having a broad social and spiritual significance in Canada. Decades and centuries later, Canadians are free to gamble in local casinos or on the web, and they’re doing it without holding back.
More than 20 million Canadians participate in online gambling, which is a major part of the population.
Most Popular Games
When we refer to online gambling, we include all the popular categories such as slots, table games, and online sports betting too. The latter is the most popular type of gambling in Canada. Luck-based games come second, more specifically bingo and online slots. They are followed by table games and poker, but in general, slots, bingo, and online sports betting remain the king in Canada.
The situation is more or less the same in land-based casinos, with one notable difference. They’re largely being overtaken by their online counterparts. The land-based gambling industry in Canada is on the decline, and has been for the best part of the last decade. Three to four years back, the annual losses were in the 20%-30% range. The gap is even bigger right now, and that’s most likely because of the increased variety of games and options available online.
Demographics and Age
Many people think that men are more likely to gamble, but in Canada, the situation’s almost equal. Males make up 56% of the gambling audience, while females make up 46%. Female players prefer to use their phones to gamble compared to men. In terms of age groups, the most active players are aged 18-35. Players over 35 years of age in Canada are rare, with most players over the age of 40 preferring leisure games like bingo.
The fact that the youth is heavily invested in online gambling isn’t surprising. It’s a bit of a concerning trend, but considering the advanced games put out every day and week, it’s clear that the gambling industry is targeting this particular age group.
Industry Value
The industry in Canada is growing, and already generates more than C$15 billion per year. We also said it’s invaluable for the job creation, directly and indirectly contributing to more than 130,000 jobs. The Canadian government has still not fully reorganized the laws in regards to online gambling. Ontario has just legalized it, but a federal decision like the Brits could see the industry soar to new heights.
With more than 75% of Canadians admitting to participate in some kind of gambling, there’s no question that the industry will continue to rise.
Legal Status
Canada is a federation consisting of 10 states. On a federal level, the gambling industry is governed by Canada’s Criminal Code. Under it, gambling activities are illegal unless the state or province decides to regulate it. Regulation is then handed down to the Canadian Gambling Commission, which oversees the activity of licensed casinos which it licenses itself.
Offshore operators are permitted, but they must have a licensed if they operate out of Canada. They’re free to offer services to Canadian players. Of course, they must comply with the laws set by the province unless they want to be banned by the governing body.
Are Online Casino Winnings in Canada Taxable?
The great thing about the Canadian online gambling industry is that winnings are not taxable. Anything you win from horse racing, sports betting, slots, lotteries, or online casinos in general is not subject to tax. However, players that earn an interest rate on winnings must fill out and submit a T5 form.
This is in stark contrast to taxation in other countries—for example some states in the USA—where winnings are taxed even up to 20%.
What Does the Future Hold?
The future for Canadian online casinos is certainly bright. There’s clear interest in the pastime, with younger age groups doing most of the ‘heavy lifting’. It’s an industry on the rise that will certainly grow bigger soon, especially if the laws are reformed on a federal level. Until then, new operators will flood in and swoop the market, contributing greatly to Canada’s budget.
