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Is Regulated Online Gambling Canada’s Economic Lifeline?
By Shane Addinall Mar 06, 2021 IndustryWith billions spent annually on illegal offshore gambling in Canada, a growing number of provinces are looking to regulate and thereby bolster their economies. We look at which provinces are regulating soon and what challenges they face.The current economic reality in Canada, as is true of much of the world, is that it suffered a recession in 2020 and while there is some improvement it will likely stay in recession through 2021.
Analysts predict that 2021 will see strong growth in GDP, anywhere up to 6%, and with the Canadian government taking direct action to support local businesses consumer trust is ranked as ‘high’.
Online Gambling’s Untapped Potential
In a report supporting the recently introduced Safe and Regulated Sports Betting Act, the Canadian Gaming Association (CGA) quoted the following figures:
“More than $4 billion is wagered through offshore online sports wagering sites. Currently, only $500 million is wagered through legal provincial sports lottery products offered to Canadians.”
In total estimates by the CGA have pegged the value of illegal and offshore gambling in Canada at more than $16 billion annually.
These figures prove that by not regulating online casinos and sports betting Canada is allowing billions of dollars in taxable revenue to flow out of the country. A reality that is unaffected by the country’s current financial situation.
The Provinces Are Doing It For Themselves
Not all Canadian provinces are happy to continue to let this be the case, however. Nova Scotia, a province in eastern Canada, has announced that it will allow licensed online gambling in its territory by April 2021.
The council gave its approval for the plans at the beginning of February giving the Atlantic Lottery Corporation the green light to kick off the development of the project.
Understanding the cross border nature of online gambling Nova Scotia is looking to share the project with other Atlantic provinces. If an accord can be reached this would see Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador, allowing their residents to gamble on the same site and from within one another borders when travelling.
With New Brunswick has launched its own standalone site and Prince Edward Island already investigating regulation for themselves the proposal should be well received, allowing these three provinces to work together as a proof of concept.
Nova Scotian Safer Gambling Concerns
While there is a lot of praise and energy behind the advancement of online gambling in Nova Scotia, there are some concerns about the local government's lack of interest in safer gambling.
In 2020 the government quietly shuttered Gambling Awareness Nova Scotia which was the body dedicated to the research and prevention of gambling addiction.
Bruce Dienes, of Gambling Risk Informed Nova Scotia, lamented the decision saying:
"In the middle of COVID ... isn't there more of a need to do this prevention work and community awareness work? This is the time when people are most vulnerable."
If Nova Scotia and any of the other Atlantic provinces want to see online gambling reach its true potential as economic support, they will have to invest in the resources and infrastructure needed to support and protect the at-risk community.
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