Rise of Online Gaming Driven by Mobile Boom
There is no denying that one of the internet’s biggest success stories is the rise of the online casino and gambling industry. Estimates suggest that more than ten per cent of all online traffic is due to players using iGaming sites, and it is forecast that by 2020 the global industry will be worth upwards of a staggering US$80 billion – effectively doubling over the space of just four years.
Although overall the Canadian market share is relatively small, comparable to countries like Spain and Italy, the popularity of online casino games continues to rise in Canada. One of the driving factors behind the growth is the increased use of mobile devices to play casino games such as poker and Blackjack, as well as other popular games like online slots and bingo. In areas where it is permitted, sports betting also makes up a significant proportion of gambling revenue.
Mobile Casino Games are Biggest Growth Area
Unsurprisingly, the most rapidly growing sector is in mobile casino. Recent advancements in mobile technology, coupled with Canada’s generous data plans and widespread Wi-Fi coverage have resulted in mobile gambling accounting for close to half of the market within a short space of time. As the number of online players increase, so does the range and quality of games, and payout rates continue to improve, thus enticing even more customers.
Land-Based Casinos Still Popular
Despite the huge rise in the popularity of online and mobile casinos, traditional bricks-and-mortar establishments do not appear to be losing out. In the early days of online gambling, some of Canada’s biggest land-based casino operators reported reduced profits, and for a time it looked like the virtual competition would put them out of business. However, recent quarterly reports from the likes of Loto-Quebec and Ontario Lottery and Gaming Corporation indicate that there has been a full recovery from this initial dip in profits, and it looks like the two sectors can co-exist comfortably.
Time for Better Regulation?
The healthy profits reported by state-run operators and their private partners suggest that traditional casinos have less to fear from the online revolution than they seem to think. The popularity of online casinos is undeniable, and now industry experts are calling for a more comprehensive set of regulations for the Canadian market. Without such regulations, it is argued, individual provinces are trying to set their own agenda, which can be detrimental to the consumer. A good example of this is the recent attempt by Loto-Quebec to force ISPs to block all unlicensed providers, thus effectively creating a monopoly for the state-run online offering, all despite their revenue not being noticeably affected by the online competition. Creating clear regulation at a federal level would prevent individual provinces from attempting to impose such restrictions, and bringing online providers in from the cold would also create a lucrative tax revenue stream for the country.
