iGaming Leaders Against Prohibition of Private Players in Ontario
The Ontario gambling regulator is considering freeing up the private gambling market with the COVID-19 lockout dragging down results.
Fresh Gaming Laws Questioned As COVID-19 Forces Down Gambling In Ontario And The Economy
Online gambling providers are expecting an upshift of policy reforms by Ontario's provincial government in reaction to the pandemic's expected development. It's predicted that the existing ban on private iGaming operators will be abolished, ensuring they'll eventually be able to access the densely populated Canadian province's historically controlled legal market.
If this were the case, the existing cash leak that was expected to reach CA$38 billion because of COVID-19 would eventually ease. The only legitimate online gambling activities are run by the government-owned Ontario Lottery & Gaming Corp, in the new regulatory structure. The overall amount invested by Ontario natives last year on on online gaming hit CA$500 million, but it was reported that a vast majority of this had funneled into offshore markets.
Danielle Bush, corporate secretary of the Canadian Gaming Association (CGA) and associate of Miller Thomson LLP, believes the tax model to be adopted for legal online gambling to be very fair and comparable with that of other global jurisdictions that would typically range from 15% to 25% of gross sales.
That means a modest estimate of 20% of annual tax revenue will produce an additional CA$100 million. James Kilsby, an analyst at Vixio Gambling Compliance, estimates that after five years the total sales for regulated online gambling will hit CA$547 million.
“It will also be a very strong economic driver to the industry to get companies to locate and operate here.”
– Paul Burns, CEO Canadian Gaming Association
Giving A Leeway And Pushing Profits To Sports Bet
Additionally, if the main operator ban were repealed, a single-event sports betting operation may be another window of opportunity to raise tax revenue in the future which financial analysts estimate will increase the overall online gambling revenue to CA$1.47 billion. This will entail, though, a more comprehensive reform in federal laws since it is still prohibited under provincial criminal law.
In addition to the monetary gains, deliberately advocating for additional ways to be implemented into gambling may be regarded adversely by the general population, irrespective of whether this is achieved with good economic intent. There's no question that the concerned political figures will be under intense pressure because gambling addiction is such a polarizing issue, so they will obviously need to act with deliberate precaution.
It is expected that the new budget to be officially released on November 5 would concentrate on the response of COVID-19, to which many gaming companies are planning to work on paving the way for a sustainable and legal online gambling industry.
Although authorities have yet to provide any schedule information on any of the planned regulatory reforms, Scott Blodgett notes:
“Over the coming months, the government will work to develop a new model for online legal gambling to help foster an exciting gambling experience” and that “be determined once further work has been undertaken”.
