What You Need to Know to Open a Sportsbook in Canada
There are several very profitable gambling markets where a bookie can make a decent living from it. While the U.S. is very lucrative, bookies should not overlook the Canadian Gambling Market of their northern neighbors. In this tutorial, we will go over What You Need to Know to Open a Sportsbook in Canada.
Canada is known globally as a premier tourist destination, due to its stunning wildlife, awe-inspiring landscapes. Furthermore, it has a rich historical and cultural heritage that makes it a unique travel destination. However, for enthusiasts of gambling, it is also known for its intricate and often convoluted Canadian Gambling Laws. Thus, it is a more complex endeavor for bookies to enter the Canadian Gambling Market and tougher for players to navigate.
Why Open a Sportsbook in Canada
For those who want to become a bookie on Canadian soil, it is well worth the effort. This is because they have a population of over 41 million people. Furthermore, Canada has a high number of international-immigrants that come to Canada. Thus, it is a fast-growing population.
The current Canadian gambling Market worth $15 billion with online gambling making up $4.9 billion of it. Furthermore, the average gambling revenue per user is around $154.40. In addition, according to bookie pay per head analysts, the number of players will real 33.9 million by 2029. Overall, Gambling in Canada generates almost $9 billion in annual revenues.
Since its inception, iGaming Ontario has achieved remarkable success, with 50 operators currently managing 80 platforms. The number of active player accounts has seen a twofold increase in the first quarter of the 2024-25 fiscal year, while revenue from sports betting and online casinos has surged by over 34% compared to the previous year.
Online casinos have emerged as the most favored gaming option, generating 73% of total revenue and accounting for more than 84% of player wagers. Gamers placed a total of $15.5 billion in bets on table games, peer-to-peer bingo, and slots, including popular offerings from casinos.com. This marks an impressive 33% increase from the prior year.
Rather than losing revenue to offshore gaming platforms, over 85% of Ontario’s players now engage with AGCO-compliant sites. This shift has resulted in approximately $2 billion in tax revenue, which directly supports provincial infrastructure, education, and healthcare initiatives. Additionally, players have gained the advantage of utilizing regulated and safer platforms for their gaming activities.
Canadian Gambling Laws and Regulations
In contrast to nations like the United States and the United Kingdom, where gaming laws are generally more lenient and straightforward. In addition, Canada’s gambling legislation is characterized by its complexity and significant variation across provinces. This disparity can create confusion for travelers to Canada who wish to partake in gaming activities during their visit.
Gambling in Canada is deemed illegal unless it is governed by provincial regulations. Consequently, operators seeking to establish a casino must adhere to local legislation, which varies significantly across provinces in terms of gambling laws and requirements.
In practice, each province possesses its own gambling authority responsible for regulating gambling activities and granting licenses within its jurisdiction. This framework enables private enterprises to offer sports betting platforms and services in that specific province.
Significant transformations occurred in the Canadian gaming industry between 2021 and 2022, marking the first substantial changes in many years. The year 2021 witnessed the implementation of amendments to the gaming provisions within Canada’s Criminal Code, which permitted provincial government gaming operators to provide single-event betting.
In 2022, the Province of Ontario took a pivotal step by opening its igaming market to private sector gaming operators. Following this, the Ontario government established iGaming Ontario (iGO) as the official entity responsible for online gaming in the province, facilitating collaboration with the private sector to deliver gaming services.
Key Canadian Legislative milestones in Canadian Gambling Regulations:
- 1985: An agreement between federal and provincial governments enabling provinces to formulate their own regulations for online and land-based gambling.
- 1996: The introduction of the Kahnawake Gaming Law, which led to the establishment of the Kahnawake Gaming Commission (KGC) to license and oversee third-party gambling operators.
- 2021: Provinces granted the authority to regulate and offer single-event sports betting.
- 2021: The Alcohol and Gaming Commission of Ontario (AGCO) initiated a new regulated framework for online gaming and betting.
The Offshore Sportsbook Market
For an extended period, individuals in Canada have been able to engage in gambling activities through operators based outside the nation. These “offshore sportsbooks” did not have to register with domestic authorities. Therefore, they could operate under less stringent regulations and enjoy reduced tax obligations.
This scenario posed significant challenges for newly established, regulated companies attempting to enter the market, as they encountered stricter regulations and higher tax rates. Nevertheless, recent regulatory reforms have streamlined various rules and processes, enabling these companies to compete more equitably.
The Future of Gambling in Canada
Ontario’s achievements have certainly attracted the attention of other provinces keen to capitalize on additional revenues and enhanced budgets. Although there have been no clear signs that other regions are ready to emulate Ontario’s approach, it is evident that further reforms are anticipated.
This suggests that there will be an ongoing shift in perspectives regarding gambling, allowing more Canadians the opportunity to engage with safer and more effectively regulated online operators.
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