Legal online gambling is a blossoming industry with a global footprint, creating huge revenues for the operators as well as the tax authorities in relevant countries. Many of the strongest iGaming markets are located in Europe and North America, where the regulations are generally better defined and more consistently enforced than elsewhere. However, every country does it in a slightly different way, depending on its laws, cultural norms, etc. However, every country does it in a slightly different way, depending on its laws, cultural norms, etc.
Canada and the EU are both regarded as premium markets for online gambling operators, and they are served by some of the most reputable iGaming companies. Let’s take a look at the regulatory environments on both sides of the Atlantic and compare their unique features.
Similarities between Canada and EU
The most striking connection between gambling laws in Europe and Canada is decentralised approach used in both cases. Every member nation of the EU has the freedom to vote on its own laws, and in the domain of online gambling national legislation is preferred over a one-size-fits-all approach dictated from central institutions in Brussels. While Canadian provinces are not independent countries, they are afforded a similar privilege to decide how gambling is regulated within their borders. In practice, some European countries like Bulgaria, Slovenia, or Luxembourg decided to completely outlaw online casino gambling or allow it on a very limited basis. Meanwhile, all Canadian provinces now allow at least some forms of online gambling but the minimum age, who can operate gambling operations, and other details vary widely depending on regulations set up by provincial authorities.
How Permissive are European Regulations Really?
While Europe has a reputation of being friendly to iGaming companies, this market is definitely not a free-for-all that some people are imagining. Sure, online gambling is immensely popular across the continent and some betting companies are sponsoring top sports teams and running massive media campaigns. It’s also true that some of the tightest controlled iGaming markets are located in the EU, with websites that are very safe to play at. The biggest nations such as France or Germany restrict some forms of online gambling and require valid licenses for those that are legal, while countries like Finland only allow the government to run gambling websites. Public sentiment in many parts of the EU is souring on online gambling due to rising rates of addiction, so it wouldn’t be shocking if the rules for operating and promoting a website become even stricter than they already are.
Can Canada Formulate a Unified Vision for Gambling?
Relative independence of provinces from the federal government is a distinct feature of the Canadian political system that has many advantages, but it also makes it difficult to formulate a nationwide policy that would create an equal playing field. After recent changes in Ontario, online gambling is available everywhere in Canada but you need to be aware of the local rules. For example, if you log in to your account on PowerPlay’s Canadian online casino while traveling domestically, you have to take your current location into account. That can be very confusing for casual players or international visitors who just want to spin the roulette wheel a couple of times. At a time when macroeconomic picture is murky and the competition in the iGaming sector is heating up, Canada could benefit from a coordinated policy that brings provincial regulations closer to each other.
How Offshore Sites Challenge Regulatory Restrictions in EU and Canada?
Licensing criteria for iGaming operators in both EU and Canada is very strict, and most of them adhere to the rules of engagement and avoid any suspicious dealings. However, that opens some space for websites that are run with less concern for the rules to sneak in through a loophole and siphon off some of the traffic. Such websites are often registered in offshore jurisdictions like Gibraltar or Curacao that have far less demanding regulations and issue licenses more liberally. These websites serve players legally, but since they are not controlled by the regulators the players have no protection in case something goes wrong, as it often does. Offshore casinos typically offer higher bonuses, fast registration, and crypto payments, attracting a portion of the player base. Since it’s difficult to eliminate such websites, the only solution is to have legal, locally licenced alternatives available to players.
Which Global Markets Are Best Positioned for the Future?
Things change fast in the online gambling world, and today’s leaders could be left in the dust tomorrow. That’s why iGaming providers are always thinking about expansion to new markets and increased presence in ones that have the highest potential to grow. Most of Europe is either saturated or restricted to outside companies, so there are limited gains to be won here. Meanwhile, Canada is among the most dynamic markets at the moment and all forecasts predict this will continue at least until the end of this decade. Brands capable of navigating the complex network of rules in various Canadian provinces and obtaining the necessary permissions stand to gain a lot in the upcoming period as the number of players continues to spike.
