Online betting industry in Canada: what should you know
In April of 2022, Ontario, Canada, led the globe in introducing a new sector of the economy dedicated to internet gaming; this sector is known as iGaming. It paves the way for businesses offering online gaming to apply for and get licensing from the Liquor and Gaming Commission and legally conduct business within the province. This is a big deal for the gaming industry in Canada, which has a history of strict oversight but is now becoming less so.
Gambling is illegal in Canada unless it is authorized by a provincial government. Because of this, the only way professionally operated gaming and betting could become lawful is if it were regulated and overseen by the different provincial governments. Therefore, in order to establish a casino in Canada, it is necessary to adhere to the local regulations, which may differ from province to province.
A province’s governing body does not operate casinos directly but instead issues licenses to private companies so that they can manage online gaming sites and supply other gambling-related services to residents. To this end, each province has established its own gaming agency to handle the licensing and regulation of the gambling industry inside its borders.
As a result of competition from internet gaming providers headquartered in other countries, the position becomes even more precarious for enterprises established in Canada. Because they are not under Canadian law, companies headquartered outside of Canada that provide gaming services to Canadian people are not obliged to register with the appropriate authorities.
This presents a complex environment for the establishment and maintenance of legal gambling businesses in Canada. However, in recent years, the country has eased up on a number of these regulations, and registration processes have been simplified. In 2021, for instance, the Canadian government plans to lift a ban on betting on specific games.
This article will provide a synopsis of the most important regulations in effect across Canada’s regions, in addition to an in-depth analysis of the most recent Ontario sports betting initiatives. Through this course, you will learn the essentials of Canadian online gaming registration and legal compliance.
The provision of gambling services is illegal in Canada unless such activity is regulated by a province or territorial authority. Consequently, enterprises looking to set up shops in Canada must give serious consideration to the laws and regulations set forth by the relevant municipal authorities.
Ontario’s iGaming Market
The provincial government of Ontario said in 2020 that it planned to create a regulated internet gambling business that would fall under the purview of the Gambling and Alcohol Commission of Ontario. The iGaming Ontario firm registration procedure kicked up in the fall of 2021, and the market opened for business in April of the following year.
Thanks to iGaming Ontario, outside parties can now provide online gaming services. In order to sign a contract with iGaming Ontario, the service provider must first get registered with AGCO. The introduction of this new method has the potential to significantly affect the gaming industry since it opens the market to new players. However, Ontario cannot permit completely unfettered behavior on the part of all outside parties. For this reason, iGaming Ontario is in charge of keeping tabs on everything.
Who is Affected?
Now that the Liquor and Gaming Commission of Ontario has legalized internet gambling, firms that wish to serve citizens of the province must become licensed with the LGC. It’s important to note that the steps involved in establishing a gaming operator are very different from those involved in licensing as a gaming-related supplier.
Any company that operates an online gambling website in Ontario is considered a gaming operator by the Liquor and Gaming Commission. There is no universally accepted definition of “operating a gaming website,” but certain practices can reveal whether or not a certain company is, in fact, engaged in this activity
Companies who “produce, provide, install, test, maintain, or repair gaming equipment or who provide consultancy or similar services directly linked to the participation of a lottery scheme or the running of a gaming site” are considered “gaming-related suppliers” by the AGCO. According to the AGCO, “gaming-related provider” might also mean “a company that makes, supplies, installs, tests, operates, or repairs gaming equipment.”
The gaming sector is slowly gaining acceptance in Canada. The current iGaming effort in Ontario is a prime example, as it will make it easier for new entrants to the industry. Also, in 2021, Canada legalized single-event sports betting with the passage of Bill C-218. As a result, both British Columbia and Ontario have committed to launching online gambling markets.
There has been a lot of movement in Canadian gambling laws recently, and businesses would be well to keep up with the latest developments in each province. To this end, a reliable Know Your Customer (KYC) solution should be implemented. This will give businesses a leg up on the market by allowing them to adjust to new provincial regulations as they emerge more swiftly.