Gambling is a form of entertainment that has existed long before technological advancement. In our digital age, casino players no longer need to move from home to enjoy casino games. Online casino operators facilitate a way for players to enjoy casino games from anywhere on any device.
The operator's payment methods are crucial as gambling requires players to bet with real money. Although traditional payment methods like debit and credit cards are standard, they’re not the most convenient.
Besides e-wallets, players now prefer to use anonymous cryptocurrencies. It’s not hard to find the best crypto casinos that can provide safety and quality in Canada.
Let’s further discuss Canadian casino regulation and how cryptocurrencies affect the gambling market.
Casino Regulation in Canada
According to Canada’s federal Criminal Code section 2017, not all forms of gaming are allowed. Yet, there are exceptions for operators who obtain permission from their local jurisdiction. This permission enables them to manage and conduct gaming within their respective province.
The body that conducts and manages operations differs from province to province. Yet, all adhere to the Lottery Corporations. The Ontario Lottery and Gaming Corporation controls Ontario's gambling industry. British Columbia is under the regulation of the British Columbia Lottery Corporation. In Quebec, Loto-Quebec oversees the industry.
In short, the only entities allowed to provide gaming services in Canada are charitable organizations that the applicable provincial government has already licensed. State fairs also have permission to run a small gaming operation.
As a government body, Lottery Corporations don’t have the right to conduct and manage gaming. So, the provincial governments have regulatory schemes that register operators and gaming supplies.
For example, the Alcohol and Gaming Commission of Ontario regulates Ontario operations. The body will also regulate the people operating gaming services. This rule applies to land-based and online gaming services cooperating with iGaming Ontario.
Offshore Gambling Platforms
The Code clearly states that offering gambling services on Canadian soil is illegal. Many unlawful gambling operations were found before gambling turned virtual. This is a straightforward ruling for the government. The operators offer gambling services without permits. Therefore, the province’s regulatory body considers them illegal.
Yet, online gaming made it more complicated to determine legality. For example, a betting company with an office in Ontario will follow Ontario gambling regulations. Yet, the company might provide their services and products to consumers outside Ontario. The same applies to offshore betting sites outside Canada that accept Canadian players.
In the regulation of such activities, The Code mentions in section 6(2) that no one shall be convicted of an offence they commit outside of Canada. The government has no power to determine the activities happening outside its jurisdiction. Although the Code outlines many criminal activities, gambling on offshore sites isn’t one of them.
The State of Online Casinos in Canada
The Ontario government stated in its 2019 budget that it intended to establish an online gambling market in Ontario. The reason was to support operators while ensuring consumers’ safety. Through the 2020 budget, Ontario announced that the government will give the AGCO the authority to manage and conduct iGaming. They would also act as the regulator and a bridge between private iGaming operators and the government.
The AGCO began consultations in 2021 with the gaming industry, including offshore online operators. The goal was to build a structure that ensures all activities remain transparent. The AGCO then created a dedicated subsidiary under the name of IGO. IGO will focus on managing and overseeing the gaming industry. The consultations provided a way for online operators to request licenses, regulatory models, and taxation.
Several months after consultations began, AGCO launched its online gaming standards for the industry. Amendments continued until late 2022, at which point the application process was already open. The AGCO started accepting applications for potential operators, ITLs (Independent Testing Laboratories), and suppliers who’d like to register. Registration is mandatory for these parties to offer their services and products in Ontario.
There’s no limit to the number of licenses the body can give. AGCO will also grant permits for operators outside of Canada. Unlike other jurisdictions, online casinos don’t have to be tethered to a land-based operator.
If the operator has already offered their services to players from Ontario before holding a license, they can continue doing so until they go live. IGO preferred not to induce a black-out period and force operators to halt operation.
How Cryptocurrencies Affect The Canadian Gambling Market
Online casinos must improve alongside technological advancement and trends. Everything improves to match people’s lifestyles and make things more accessible and convenient. It includes payment methods that players can use to make deposits and withdrawals.
Cryptocurrencies have been gaining significant economic power in Canada. Many started investing in crypto, causing the virtual currency to rise in value day by day. This is a good chance for casino operators to include cryptocurrencies in their payment options.
Over the years, cryptocurrencies have brought many changes to the gambling industry. A lot of operators banked on crypto as the future of Canada’s online gambling market.
Transaction Fees
One of the challenges that players face in an online casino is the high transaction fees, typically connected to credit cards and bank transfers. Every casino has different transaction fees that may be incurred upon depositing and withdrawing.
This is why cryptocurrencies have become significant in the gambling industry. Some casinos still charge a transaction fee for cryptocurrencies, but the good news is that they’re lower than traditional payment methods.
Cryptocurrency is beneficial to all parties. Players can transact without losing money when funding their accounts. As it convenience players, they deposit more often, increasing the operator’s profit margins.
Data Security
Besides lowering transaction fees, cryptocurrencies heighten players’ transaction security. Many players are afraid of sharing their financial information with casino operators.
As cryptocurrencies use blockchain technology, they can guarantee users’ data security and privacy.
When players use cryptocurrencies to transact, multiple computers on the public blockchain process their payment before it marks the transaction as complete.
Unlike traditional payment methods, players won’t have to share anything with a third party during the process. That way, funding a betting account lessens the probability of getting hacked.
Again, this technology benefits both parties. Online casinos take advantage of the blockchain network to facilitate smooth operation. As an added benefit, the blockchain network helps operators prevent delays when there’s a surge in new players and transactions.
Anonymity
There are many reasons why players look for a way to hide their identity when registering for an online casino. Some don’t trust the casino operator to hold their financial information, and others prefer not to share their casino transaction history with a financial institution.
When players aim to transact with an online casino, they must share sensitive information. It includes their names and home addresses. Cryptocurrencies don’t need players to share this information. The currency’s blockchain network will do all the work and complete the transaction without the players’ data.
Players who want to hide their real name when transacting with a casino often choose cryptocurrencies due to the anonymity they can give. They can provide more security and won’t leave a paper trail.
However, many crypto casinos enforce KYC (Know Your Customer) checks to verify a player’s identity before processing withdrawals.
Shorter Processing Time
When a casino player wins, they want to withdraw their winnings immediately. Even if they’re patient enough to wait, some players will find it concerning that their money takes days to arrive.
Extended waiting times are typical with traditional payment methods like credit and debit cards. Bank cards need several days to process, not including the casino’s internal processing period.
This is a major inconvenience for players until cryptocurrencies step in. E-wallets do provide shorter time processing compared to bank cards. Yet, cryptocurrencies are even quicker.
The blockchain network of these virtual currencies is the key that supports each transfer. They only take seconds so that players can receive payouts immediately. Advanced blockchains can process thousands of transactions per second. This results in instant deposits and withdrawals. However, transaction times vary by cryptocurrency.
Lowering Inflation Risks
Inflation concerns online players who often transact using fiat currency. The current economic changes are volatile, and a currency’s value can fluctuate according to world events. Inflation can affect the value of a player’s winnings.
Cryptocurrencies are volatile as well, but they’re less affected by inflation. The government can print fiat as an answer to inflation, but the same doesn’t apply to cryptocurrencies. Cryptos are in a limited supply, especially Bitcoin, which leads to heightened stability.
The Future of Cryptocurrencies in Online Casinos
Canada is one of the most crypto-friendly jurisdictions worldwide. Due to the nature of its gambling laws, crypto users can find many online casinos and betting sites accepting cryptocurrency.
Analysts have predicted that the growth of the global gambling market will keep increasing. It is also affected by cryptocurrencies’ involvement in the industry. Blockchain technology provides an innovative way to protect players and make operators more transparent in offering services or products.
With cryptocurrencies' many advantages, it’s safe to expect more online casinos in Canada to accept the virtual currency soon.
