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The Canadian Gambling Market In 2020

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Gambling has long been one of the most popular pastimes in the world and as recent industry figures show, there are no signs of that popularity dropping in the years to come.

Two years ago, the global gambling industry generated $214.88 billion and this year that figure is expected to breach $250 billion.

Discussions surrounding gambling often centre on the glitz and glamour of Las Vegas casinos or delve into the nitty-gritty of the British online gambling industry. Canada is often an afterthought in any discussions about global gambling, but not in this article.

Below we take a deep dive into the facts and figures to paint a picture of how the Canadian gambling industry has performed thus far in 2020.

 

Canada’s Recent Gambling History

Whilst your mind may be immediately cast to Las Vegas when you think of super casinos it’s important to remember that there are a number of huge and profitable casinos in Canada.

Montreal and Quebec are home to perhaps the biggest and most famous casinos in the country, but whilst they may be popular with tourists, industry figures show that land-based casino revenues in Canada are dropping year on year.

The reasons behind these falling figures are complex, but there does seem to be two factors that seem to go some way to explaining the falling revenues of land-based casinos. Firstly, global gambling took a steep downturn between 2008 and 2012.

The Great Recession of 2008 changed people’s attitudes towards their disposable income, making people more inclined to look after their money rather than spending it on leisure activities. Land-based gambling venues appear to have been hit particularly hard by this change in consumer attitude.

Secondly, land-based casinos have suffered in light of the competition offered by online gambling companies. Rather than dressing up, booking a hotel and heading to a casino with friends, many gamblers are turning to online to get play their favourite casino games. Majority of casino sites now offer a wide range of games to suit players preferences, so they do not have to search elsewhere. For example those that love to play blackjack can head to a site like 888 casino blackjack, where players will also find a range of other casino games like online slots and live roulette.

In 2012 when consumers were finally shaking off the effects of the 2008 recession, the gambling industry was changing. More and more companies were offering their services online and as a result, players who had previously gambled in purpose-built casinos were playing online.

The 2008 recession had a significant impact on consumer spending habits.

 

Therefore, over the past 8 years across the world and in Canada online gambling revenues have been growing whilst land-based revenues have flattened, or even decreased. But what are the big issues that the Canadian industry has faced in 2020? Read on to find out.

 

Continued Decline for Land-Based Casinos

2020 has not been a normal year by any stretch of the imagination and the land-based casino industry has been hit particularly hard by the chaotic year that we have had. However, casinos in Canada were struggling even up until March when footfall was unrestricted.

In Alberta for example, land-based casinos generated revenues of $1.3 billion in 2018 and by March they were way off the pace to even replicate that figure, never mind beat it. As such the Albertan government has taken direct action, launching their own online casino in a bid to fill the $800 million hole left by struggling land-based casinos.

It’s a similar story throughout the country, where provincial governments are exploring a range of options to prop up the struggling land-based industry.

 

Foreign Exodus of Cash

Gambling money leaving the country is nothing new for Canada. For the better part of the last fifteen years the Canadian government has hamstrung its domestic online industry by maintaining prohibitive laws that limit the amount of companies available to offer their services to players.

Whilst online gambling is legal in Canada, online providers must either be directly run or licensed by provincial governments. These legal requirements have led to a dearth in competition in the country and indirectly encourages Canadians to play with offshore companies.

A recent IPSOS survey suggests that last year alone Canadians spent an estimated £1 billion with foreign online casinos. As more people seek out better offers and bonuses in the wake of the closure of land-based casinos, that figure is expected to rise by the time 2020 concludes.

 

Increased Average Spend

Thus far the picture painted by the statistics for the Canadian gambling industry looks bleak, but there is hope. Canadians spend on average an awful lot more on gambling than their neighbours the Americans.

Per capita Canadians were spending $824.68 a year with online gambling companies last year and that figure is expected to rise by the end of this year. Whilst 2020 has been unforgiving for many people’s personal finances it has benefitted some.

With less avenues to spend disposable cash such as restaurants and shops, people have been spending more money on gambling according to a number of industry reports. That means that the Canadian gambling industry should post encouraging revenues for 2020, even in the face of a difficult trading environment.

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Comments

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