Shutterstock
Single-game sports betting was made legal in Canada in August 2021, with provinces now able to regulate and tax wagering. C-218, a bill to allow single-game wagers, was passed by Canadian lawmakers. Provinces can control sports betting in the same way that individual states in the United States can. The law went into effect on August 27, when many provincial lotteries began offering sports betting to Canadian residents.
The rapid development of sports betting in the US almost certainly influenced the decriminalization of single-event sports betting and the launch of Ontario’s new iGaming market, including Ice Casino. The enormous popularity of regulated sports betting in the US has triggered Canadian legislators and regulators to update the gaming laws of Canada and extend domestic online gaming market.
How the Single-game Sports Betting Was Legalized
According to Legal Sports Report, the legalized sports betting market has exploded in the United States since the Supreme Court voided the Professional and Amateur Sports Protection Act (PASPA) in May 2018. Canada is now poised to legalize sports betting.
On Tuesday afternoon, the Senate of Canada agreed on Bill C-218, legalizing single-game sports betting in Canada except for horse racing. Sports betting can now be offered in each province and territory.
The federal government has made betting on individual sporting events legal, giving legitimacy to a shadowy industry in which Canadians spend billions of dollars annually.
The Effect of the Legislation on Single-Game Sport Betting on the Canadian Economy
According to the federal government, Canadians spend around $10 billion per year on sporting events due to illegal black market betting by networks of organized criminals. Canadians spend an additional $4 billion per year in the “grey market” in offshore jurisdictions where betting is legal.
The new rules could bring that money back into Canada in a way that can be tracked and taxed. However, because most US states have since legalized and regulated sports betting, and Canada has long had a thriving “gray market” of offshore sportsbooks, Ramsey believes it is possible to forecast where the Canadian market will go.
Some of the things to look forward to in the third full year:
- The Canadian market could generate up to $25 billion in wagering per year, with online sportsbook operators accounting for more than 80%.
- These wagers would result in over $2 billion in operator revenue and between $250 million and $500 million in annual tax revenue, depending on regulatory structures.
- Ontario has a potential annual wagering revenue of $11.1 billion and more than $800 million in operator revenue. It would make it one of North America’s largest markets.
Even if every province adopts single-game wagering, regulators will need to answer critical questions about market structure. It includes deciding whether to create an open market where multiple sportsbooks can compete openly, as Nevada and New Jersey have done. Alternatively, regulators could use a closed model in which the province limits the number of operators in exchange for a revenue-sharing agreement that directly benefits the government.
As the United States has demonstrated, the decision can have far-reaching consequences for how an individual market performs.
Legal Canadian Online Sportsbooks
The Proline
Proline is a local betting service available in three Canadian provinces, such as Ontario, British Columbia, and Québec, that allows Canadians to wager on various sports. This sportsbook went live in 2021, giving it an advantage over future potential US sportsbooks. Proline offers sports betting options in any location where lottery tickets are sold and where online wagering is offered. However, operations of this sportsbook are managed by the lotteries of the respective provinces.
PlayNow
PlayNow is a sports betting service based in Canada and only available in British Columbia. The British Columbia Lottery Corporation regulates the sportsbook (BCLC).
bet365
bet365 is a well-known sportsbook in Europe, and now it’s finding its way in Canada and the USs. bet365 does not offer enormous bonuses, but it is known for some specials, such as the cash-out feature, which allows bettors to receive a return on their bet before the game has ended.
Summing-Up
The best advantage of winning bets as a Canadian citizen is that you do not have to pay taxes on your winnings. Citizens are only required to report their earnings and pay taxes on the interest earned from winning bets. It only applies to citizens who gamble for fun, not as a full-time occupation.
On the other hand, private sportsbooks must pay a standard 20% effective tax rate, the average rate across Canada.
Fortunately, Canada’s tax rate is significantly lower than New York’s 51 per cent rate, giving operators a sigh of relief as they conduct business in another significant market.