The iGaming market in Canada is relatively small compared to Europe. In fact, the Canadian market is only a fraction of the size of the European market. However, this doesn’t mean that there isn’t money to be made in the Canadian iGaming market.
According to recent figures, the entire gambling sector in Canada was found to be worth around US$12.75 billion by the end of 2020, although it should be noted that this was a decrease because of the economic climate that the world had been facing at the time.
In contrast, the value of the European gambling market was said to have been worth €87.2 billion in gross gaming revenue by the end of 2021; again, taking the economic crisis that was experienced globally into account.
Nonetheless, whilst there is a huge difference in the numbers, there is still plenty of opportunities for the Canadian market to recover, get back to its previously stable level, and then potentially even exceed and continue to grow even further in the near future.
This article will outline just some of the reasons that can be associated with the fact that the Maple Leaf Country’s market is smaller than Europe’s and the potential growth that it can look to achieve in the future.
Heavily regulated market
One reason why the Canadian iGaming market is smaller than Europe’s is that gambling is heavily regulated in Canada. There are only a handful of provinces that allow online gambling, and even then, there are strict rules and regulations that must be followed. This makes it difficult for new operators to enter the Canadian iGaming market.
Of course, there have been recent developments regarding legislation, with Ontario now permitting individuals to be able to actively participate in iGaming activities. Indeed, sites like the Casumo online casino can now legally provide punters within the country’s most populous province with the opportunity to play their favorite games.
Now that this has been achieved, it is only likely to have a positive influence and impact on the country’s overall iGaming market. Naturally, it would still fall in comparison to Europe’s, but it will still be able to grow exponentially.
Lack of competition
Another reason why the Canadian iGaming market is smaller than Europe’s is that there is a lack of competition. There are only a few major players in the Canadian iGaming market, which means that there is not as much competition for customers. This lack of competition can make it difficult for new operators to break into the Canadian iGaming market.
However, as highlighted in the previous point, Ontario’s decision to legalize iGaming could help to make the industry thrive, as more and more operators will want to try and obtain a permit and license to operate within the province. This, in turn, should see the size of the market value increase further, too.
Perhaps one of the most obvious reasons why the Canadian iGaming market lags in comparison to Europe’s is because of the population.
It is thought that Canada has a population of just over 38 million people, whereas Europe’s population is over 740 million. Therefore, it is easy to see that there are more potential customers in Europe than in Canada, which will instantly have an impact on the size of the market.
Despite the challenges, there are still plenty of opportunities for operators and providers in the Canadian iGaming market, especially since the introduction of new laws in Ontario. With the right strategy, operators can succeed in this particular market and Canada’s iGaming sector should be able to thrive further in the near future!