The online gambling industry is growing rapidly, with many countries scrambling to introduce effective regulatory measures to protect consumers and create a fair industry.
In Canada, the results of recently introduced legislation have led to significant revenue growth, with the industry notching an impressive $2.4 billion in 2024 alone. It is estimated that approximately 75% of Canadians gamble in some form regularly, with online casinos accounting for 26% of the total figure.
Non-regulated betting used to command the biggest slice of the pie, but now that Canadian casinos can offer legal options for players, the picture has changed significantly.
Canada’s experience is a potential template for other countries seeking to introduce legislation of their own. Despite the industry’s rapid expansion, however, there are some warning signs that it’s perhaps too much, too soon.
New Zealand: Moving Towards the ‘Canada Model’
Canada’s apparent success in the introduction of legislation to regulate the online gambling market has served as an example to countries facing similar growth in online gambling.
New Zealand has traditionally adopted a very restrictive approach to gambling in general. However, like in Canada, this has not stopped numerous players from accessing their favourite online games.
In New Zealand, almost 80% of the adult population gambles in some form, whether it is playing the weekly lottery or finding an online slot machine. With this in mind, and the seemingly unstoppable force of the iGaming industry, the government is softening its stances on the industry.
The government is still in the process of introducing a robust regulatory regime to tackle online gambling, following a similar model to what was done in Canada just a few short years ago. It is planning on introducing a new framework by 2026, although details remain somewhat sparse at present.
For the authorities in New Zealand, the benefits are clear: increasing tax revenues from an industry that has thus far operated in a grey area, and raising funds through the supply of gambling licenses to online operators. The current plan is to auction off fifteen licenses to operators that must meet certain regulatory criteria.
For established local players like SkyCity Casino or Christchurch Casino worrying developments may be ahead, with offshore operators with larger budgets capable of outbidding for licenses beyond fair market value.
This is just one of the issues that countries like New Zealand will face following the introduction of regulatory measures. In Canada, a recent policy study suggests that rapid expansion can also go hand in hand with growing pains.
Limiting Gambling Advertising
A recent study conducted by GP Consulting in Canada suggests that gambling advertisements perhaps require further regulation. The authors do not suggest a blanket ban, but instead advise the government to implement certain controls to encourage healthy gambling habits.
For instance, the ads cannot mislead or make false promises on winnings, and messages of excessive play should be curtailed. Further, ads should not target young people or those in vulnerable groups.
Ontario has responded to one of the suggestions already, revising rules to exclude the use of athletes or celebrities in gambling ads. The Canadian government is also considering limiting when ads can be shown on television, with some suggesting they could be banned altogether.
For most gamblers, these measures are relatively benign. This is because most players are casual, often betting small amounts that they can afford to lose, but some individuals can benefit from measures to prevent them from taking the fun too far.
For instance, some casinos already implement such things as limits on daily deposits, reminders on how long an individual has been playing, and the ability for players to set how much can be staked. This prevents players from chasing losses or betting more than they should.
Ahead of regulatory controls, casinos are one step ahead in implementing technological solutions to potential issues. This further helps to encourage governments that gambling can be successfully introduced to a country, without leading to significant issues.
The Future of Gambling
Games of chance are moving towards online platforms as the primary delivery vehicle. Traditional brick-and-mortar casinos you can find in cities like Las Vegas and Atlantic City will always have a place, still as popular as ever, but players are increasingly preferring to play from their tablets or mobiles, rather than frequenting an establishment in person.
With the internet providing an easy avenue for players to access online gambling, even in locations where iGaming is either operating in a grey area or illegal altogether, many governments are realizing that it is preferable to regulate the market.
However, with the industry still being relatively young, there are many potential pitfalls and unknowns. Industry leaders need to work with local governments to create a win-win situation for all, including players.
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