Montreal, a hub for technological and entertainment innovation, is experiencing an increase in online gambling activity. The online gambling market in Canada, particularly Quebec, is projected to see significant growth. Recent statistics reveal Canada’s online gambling market is expected to reach $362.89 million in 2024, with the online gambling sector reaching $4.19 billion, an annual growth of 6%. However, Loto-Quebec, which has historically dominated the country’s online gambling market, reported losses of 3.0% in total income and 8.2% in consolidated income for the 2023-24 fiscal year.
Brett Curtis from Techopedia says there has been an increase in the newest online casinos that have been the driving source behind the online gambling market’s growth. Newer gambling platforms have so much more to offer in terms of diversification in games, payment options, and technology compared to established sites. This growth is driven by various factors:
Regulatory Environment
Quebec has a well-defined regulatory framework for online gambling, managed mainly by Loto-Quebec and overseen by the Alcohol and Gaming Commission of Quebec. At one point the province had legislative laws in place aimed at blocking access to offshore casinos. The Supreme Court of Canada lifted the ban on offshore casinos, claiming the laws were unconstitutional, effectively allowing offshore casinos to operate legally in the province.
This resulted in offshore casinos offering players from Canada a wider range of gaming options, bonuses, and better payment options compared to the limited choices available through Loto-Quebe’s Espacejeux. This led to a significant presence of offshore casinos, contributing to the growth of the online gambling market. The lack of deregulation and the court’s decision created a loophole that allowed offshore operators to serve Montreal’s and the rest of Quebec’s players.
Technological Advancements
Compared to 5 years ago, technology has advanced leading to the expansion of online casinos.
- 5G networks: High-speed internet connectivity, including the rollout of 5G networks, has drastically improved the online gaming experience.
- Live Streaming and virtual reality: This feature allows online casinos to live stream in 4K ultra/high definition, enhancing liver dealer games. VR technology provides immersive experiences, simulating the atmosphere of a real casino.
- Mobile gaming: Most online casino websites are optimized for mobile devices or have mobile apps that allow players to access games using their smartphones or tablets.
- Payment gateways and blockchain technology: Efficient payment processing, including blockchain technology and cryptocurrencies, enhances security and transparency, offering faster and more secure transactions.
Player Preference
Since Quebec’s online casino offerings are very limited player preferences have significantly shifted. Many players now opt for offshore casinos that offer a broader selection of games. These platforms also cater to players’ changing preferences, offering mobile-compatible platforms, and multiple payment options such as Bitcoin and PayPal, as well as a more comprehensive and convenient gaming experience.
A trend that’s been gaining traction is the preference for using offshore casinos over local options:
- Nearly 3 out of 4 Quebec players choose privately-operated platforms for online casino games and sports betting.
- Only 26.6% of players use Loto-Quebec’s Espace Jeux for online casino gaming and sports betting.
This preference for offshore casinos is most likely due to the offerings from offshore casinos. These player preferences have been the driving force behind the growth of online casinos in Montreal, as operators aim to meet the demands and attract a larger player base.
The Economy
Montreal’s economy has experienced significant fluctuations over the years. During economic downturns, people naturally tend to be more cautious with their spending. However, the online casino industry provides a boost to the economy, generating substantial revenue. In Canada, the online casino sector is projected to generate over $2 billion in gross revenue by 2024, nearly tripling the $750 million recorded in 2020.
Push for Regulatory Change
The growing number of online casinos in Montreal can be attributed to the push for regulatory change, led by the Quebec Online Gaming Coalition (QOGC). Loto-Quebec holds a monopoly on legal online gambling, and The Quebec Finance Ministry recently rejected calls to deregulate the market.
QOGC advocates for a regulated industry, mirroring Ontario’s iGaming model. A survey conducted showed that 73% of Quebec players use offshore casino sites, and the QOGC estimates royalties from private operators, like the offshore casinos, could reach $230 million.
The Quebec government voiced concerns about overexposure to gambling ads, saying that Loto-Quebec provides a safer alternative to “unregulated” gambling. In February 2024, the government rejected deregulating the online gambling market. This has several implications that contribute to the growing number of online casinos in Montreal:
- Despite offshore operators being allowed to operate in Quebec, the province continues to see these operators as unregulated. This means that offshore casinos operate in a legal gray area, without local oversight.
- Offshore casinos will continue to attract players from Montreal looking for diverse options.
- There is a continued push for change by organizations like QOGC for change.
- This is a missed opportunity for tax revenue from regulated online gambling platforms in Quebec.
Despite the government’s stance, the demand for online casinos in Montreal and the province of Quebec, appears to be growing, with players turning to offshore options in significant numbers.
Other articles from mtltimes.ca – totimes.ca – otttimes.ca