It seems that there is a lot of excitement and buzz regarding the legality of gambling laws within Canada, especially when the amount of revenue that can be generated following this decision is taken into account.
Indeed, there is still a significant amount of expansion that could take place in the North American nation in regard to the online gambling market, although as Ontario has been the first province to make amendments to the laws that govern and regulate the industry, it seems that there is still an excitement about what could potentially be generated.
This article will take a look at what the revenue expectation for Canada is should gambling become fully legal, whilst also analyzing what other benefits could potentially be created for the North American country.
$25 billion is estimated to be potentially possible to generate
According to research studies, analyses, and reports to have been created by official bodies, it has been suggested that Canada could potentially generate around $25 billion if they were to fully legalize gambling activities across both online and retail markets.
Indeed, in order for this figure to be possible, it is widely believed that there would have to be a change to the laws across each of the provinces, with each of them being required to legalize single-game wagering; something that Ontario has only recently done and made live for its citizens.
The findings, though, have been taken over a three-year period, although they each provide a rather positive outlook for the nation, should Canada look to follow the U.S. and begin to implement its own regulations as the country already takes a similar stance and approach whereby each province creates its own regulatory frameworks.
Furthermore, it has been argued that the estimated revenues and the positive outlook of fully legalized gambling within the nation are also a fair estimate because of the decentralization that is experienced, as well as the fact that there is a thriving “grey market” that continues to exist within the country.
What is expected by the end of the third year?
As highlighted, the $25 billion revenue figure that has been estimated possible to generate following the full legalization of betting operations in Canada is dependent on a number of factors over a three-year period.
Naturally, the white paper to have been created also highlighted a number of other aspects that could be expected, including:
- More than 80% of the $25 billion in wagering annually would come via the use of online sportsbooks.
- Between $200 million and $400 million could be generated in annual tax revenue.
- Ontario would be the biggest market; generating a potential $11.1 billion in wagering and over $800 million in operator revenue.
However, it was also mentioned that these figures could depend on how the online gambling market in Canada is structured and whether they will be favorable for punters and operators in the future.
For instance, it has been suggested that an open market approach could be followed, where sportsbooks would be able to compete with each other and look to try and get as much of the market share of the market as they can. This model is already being utilized in the U.S. with states such as Nevada and New Jersey adopting this approach.
Nonetheless, Canada could also look to opt for a market that follows a closed model, which will see provinces decide to limit the number of operators that can legally enter and operate within its borders in return for a revenue-sharing agreement that would ultimately benefit the government. This may be something that appeals to policymakers but may put off brands from entering, especially if they can enjoy open markets.
Are there any other benefits that Canada can experience?
Naturally, should Canada decide to opt to fully legalize gambling laws in the future, there is an array of other benefits that can be enjoyed on top of the predicted $25 billion that could be generated.
Whilst the revenue would perhaps be seen as one of the biggest benefits for the country and its provinces, as well as being earmarked as the main incentive to allow the activity and industry to potentially thrive within the North American country, there is no denying that it could also have a number of other positive impacts.
Indeed, Canada has always been an extremely popular tourist spot for many around the world, with millions continuing to visit places such as Toronto, Vancouver, and Montreal always being high on the list, however there is every possibility that the legalization of gambling could also encourage higher visitor numbers.
For instance, Americans might be willing to go and watch the professional Canadian sports teams – Toronto Maple Leafs, Montreal Canadiens, Toronto Raptors, etc. – when their favorite team goes up against them live at the arena if they were able to place a wager using an online sportsbook whilst there.
Moreover, the rise in tourism could have a number of add-ons, including a greater amount of spending, thus creating a need for additional services.
Social and community benefits
Naturally, the fact that there would be a need for certain services could then help to provide each province with the ability to create new jobs as they look to cope with the growing demand that is experienced by greater visitor numbers.
This could then help out with the unemployment rate as more residents would be required to fill the newly created job vacancies, which could also have a positive influence on the province’s economy, thus helping to have a huge impact on the country’s overall economy, too.
Additionally, the increase in revenue could also be used to improve various aspects of the province, with each of their government’s ability to use the funds raised to improve infrastructure, increase the number of public services available, or help to try and fund initiatives that help to improve the overall community in a variety of ways, including medically.
To conclude, it is clear that the full legalization of gambling within Canada could have a potentially huge influence on the country that could all be deemed positive. Indeed, the estimated $25 billion that could potentially be generated would be immense and could go a very long way toward helping the nation do whatever they want/need to do.