Canada could generate $2 Billion annually from sports betting
Published: September 25, 2021
A new paper published by PlayCanada states that sports betting operators could accumulate a profit of $2.02B annually. The total wagers could amount to $25.3B, with over $300M collected in associated taxes and a rate of 15%.
The same study shows that Ontario would be the market with the biggest prizes in Canada. Moreover, the sports betting operators would generate more than 80% of revenue.
This best-case scenario is possible if all provinces legitimize competitive betting, the study says. However, the Canadian Gaming Association expects the tax rate to be closer to 20%, which would mean another $100M in the bag.
The study was published right after the new era had begun with single-event sports betting being authorized in Canada. Before the law came into effect, players were only allowed to place bets on three or more games.
Justice Minister David Lamett stated these changes would benefit the country immensely. The revenues will be used to fund education and healthcare, as well as other related causes.
This is already the case with other lottery incomes. Canadians will be able to enjoy responsible gaming and profit from the amounts generated from wagers.
After the Ontario Lottery and Gaming Corporation has launched single-event bets, the British Columbia Lottery Corporation will follow.
Many provinces remain uncertain about introducing sports betting, but the report claims Canada could generate enormous profits from the activity. Every province would have to legalize sports betting, adopting its own regulatory structure.
It remains to be seen how the Canadian market will function once it’s completely built. However, analysts see it as one of the last great opportunities in North America.
This analysis states that Ontario could become one of the biggest markets on the continent, with nearly $12B generated in wagering and operator revenue.
Another important question concerns the market structure in every province. Experts need to decide whether it will be open, with multiple sportsbooks, or closed, with a limited number of operators. The decision will significantly influence each market, and the authors of the paper believe Canada can have both models.
Commenting on the new developments, BCLC CEO, Linda Cavanaugh, stated:
This is a landmark moment for BCLC and our players. We’re excited to enhance our offerings on PlayNow, the only gambling website operating in BC where revenue goes back to British Columbians by supporting provincial initiatives like healthcare, education and community programs.
About British Columbia Lottery Corporation (BCLC)
BCLC is an enterprise that has provided exceptional entertainment for 35 years to British Columbians. Managing lottery, sports betting, casino and bingo, they deliver great fun and promote regulated gambling.
So far, they have generated $25B for various vital causes, including education, healthcare and community programs. They are always dedicated to the community, organizing silent auctions, draws and events to fundraise for numerous local causes.