Earlier this year, Canada’s federal government legalized sports wagering, paving the way for provinces to establish their respective sports betting and iGaming markets. Provinces such as Ontario are expected to launch their online gaming market by the end of 2021—opening doors for interested American merchants. The Canadian gaming industry could be considered the best market for U.S.-based operator expansion.
One of the major reasons why U.S.-based online gaming merchants and sportsbooks should obtain an operator license in Canada is the opportunity—it’s a billion-dollar industry. According to the Canadian Gaming Association, in 2019, Ontario’s gaming industry alone generated revenue of $6.3 billion. Also, gaming “is the largest segment of Canada’s entertainment industry.” Canada has one of the most active bases of online gaming players worldwide. According to AffiliateInsider, almost 20 million Canadians participate in active gambling.” Due to the popularity of iGaming and sports wagering in Canada, American operators who have previously familiarized themselves with Canadian players via offshore options could benefit from that association as they already have an active consumer base.
Another key component that U.S.-based iGaming operators and sportsbooks could benefit from is sponsorship. Sports is one of the main areas online gaming operators seek sponsorship. Companies such as DraftKings have been collaborating with American sports organizations like the UFC, which have helped in brand awareness for the platform and have also been integral in providing odds-related stats. Canadian sports organizations such as CFL or the Canadian Elite Basketball League will help interested American operators in reaching a new audience while also providing diverse sports betting options for Canadian players.
Aside from sponsorship and financial benefits, American operators could play a huge role in responsible gaming initiatives. As provinces begin to create their online gaming framework, tackling problem gaming will be an important part of that strategy. U.S.-based operators could provide insights to Canadian regulators about the best practices in responsible gaming. They could share the learnings from measures they have implemented on their platforms with the help of American regulators. Diverse responsible gaming measures aimed at Canadian players will benefit the players and help create trust between operators and regulators.
Canada holds one of the most active online gaming player-ships in the world, bringing in a lot of revenue. According to Statista, in 2020 the Canadian gambling industry held an estimated value of 14.08 billion U.S. dollars. With Canadian provinces such as Ontario working to launch their online gaming markets by the end of the year, American gaming operators could benefit from expanding their brand in Canada.
To know more about payment solutions well-suited for North America’s iGaming and sports wagering market, please visit Nuvei and Mazooma at Booth 3211 at the Global Gaming Expo 2021 happening in Sands Expo in Las Vegas, NV from Oct 4th to 7th, 2021. Click here to register.