Since November 2020, speculation has intensified surrounding the full regulation of online casinos and gambling operators in Ontario, Canada. This comes after the provincial government laid out fresh budgetary plans for 2024. Should the proposed changes come to fruition, this would mean an influx of new remote gambling operators in the Ontario marketplace.
Still in the planning stage
The November 2020 discussions follow the April 2019 announcement that the provincial government is intent on ending the legalized monopoly of the Ontario Lottery and Gaming Corporation (OLG). After opening up the market to new entrants, the Alcohol and Gaming Commission of Ontario (AGCO) would assume a regulatory role by assessing applicants and granting licenses to those who receive approval.
In the latest Ontario budget, the government described the time as being suitable to remove prohibition and give residents the right to choose. The provincial government is aware that many of the residents are already using online casinos and sportsbooks that are described as “grey”. The government has estimated that C$500 million a year is spent on websites that are not currently regulated in Ontario.
Canadian Gaming Association (CGA) CEO Paul Burns describes the effort as bringing gambling “out of the shadows” and utilizing the market as “a very strong economic driver”. At the same time, patience must be observed, what with the financial officials remaining coy over when to expect the regulatory changes that are required to open up the marketplace. Spokesman Scott Blodgett spoke of the need to develop a new model and undertake more work before committing to a timeframe.
What will new sites bring to Ontario casino players?
When online gambling is fully legalized in Ontario, Canada, there will be many more casinos for players to enjoy. Until then, players can seek the thrill online at Canadian casinos. Ontarians can play at some of the best online casinos and enjoy top-quality service, exciting games, and hopefully, big wins! Furthermore, Ontario online casino players can even play the latest free slots and experience the fastest payouts online via mobile. In some cases, players will get to sign up at top Canadian sites for free and receive a no deposit bonus.
Additionally, many of the top casino sites no longer require players to install specific software. The approach is known as instant play and ensures that players can stream content without installation being part of the process.
In the past, it was common practice for an online casino to provide a downloadable platform that each player was required to install. However, this led to a marketplace in which different software providers could not be combined at the same casino sites and this inhibited the choices of players. Fortunately, all has been rectified with online casinos now developing web-based platforms that can attract multiple leaders from the iGaming software development space.
One day, it will become possible for Canadian users to play free slots and table games from more than one provider, nowadays that’s Microgaming. Playing for real money will be the dominant approach, based on it offering the greatest potential for winnings.
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Potential tax revenue
According to James Kilsby of VIXIO Gambling Compliance, a legal online gambling market in Ontario could generate approximately C$547 million in five years. As for the revenue that could mean for the government, it depends on the rate of tax that is set. When looking to Europe, the lowest tax rates are 15% of gross revenue and the highest can be 25%.
However, Danielle Bush of Miller Thomson LLP believes that Ontario will target the lower end of that scale and set a gross revenue tax that could be 18%. Bush has forecast that an 18% tax could generate upwards of C$100 million for the revenue, which she says is projected to incur a damaging C$38 billion deficit in 2021 with the province continuing to combat the negative impacts of COVID-19.
Going back to Kilsby, he believes that the market could be worth C$1.47 billion one day, but only if the federal government chooses to remove the ban on single-event sports betting. As it stands, the Ontario government does not have the power to make that change without receiving the support of its federal counterparts. Kilsby believes that such a change would be a landmark for a province that is larger than the majority of states in the US.
Is Ontario ready for legalization?
The issue of single-event sports betting is one that will not change overnight. At a time when Canada is dependent on the population to follow Coronavirus guidelines, including the wearing of masks, no government in the country wants to appear opportunistic of acting impulsively in a way that does not meet the needs of the general public.
In the shorter term, there could be a scenario in which Ontario pursues a softer rolling back of the current online gambling restrictions. Initially, this would allow for online casino sites to undergo a process of widespread licensing. With tax revenues flowing and the industry safely managed by the AGCO, the Ontario government could then return to the federal government and request that the issue of single-event sports betting be revisited. After all, there will be still be the issue of residents accessing “grey” betting sites that are not licensed or regulated.
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