Economic Impact of Canadian Online Casinos: Contributions to Local Communities
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Although the main goal of Canadian online casinos is to provide leisure and entertainment, their impact on the national economy is undeniable. Namely, according to stats, in 2022, the online gambling industry in the Great White North reached $12.5 billion, while by 2027, it should generate $912 billion.
With that in mind, the gambling industry helps the economy in many ways – by generating taxes, creating new jobs, and promoting tourism. Furthermore, with its extensive game library and lucrative bonuses, the best Canadian online casino has the potential to attract high rollers, which further stimulates the growth of the iGaming industry.
The Canadian iGaming industry is also responsible for distributing approximately $9 billion per year to programs that support community development.
That said, here is a brief overview of how the online gambling industry in Canada affects the country’s economy.
How the iGaming Industry Impacts the Canadian Economy
The Canadian iGaming industry generates billions of dollars every year. For example, in 2022, it was valued at $12.5 billion, while the average revenue per user was $220. By 2027, the online gambling market in Canada is predicted to reach $912 billion.
These high numbers are the result of the increased availability of legal gaming platforms that, with their extended game libraries and lucrative bonuses, attract all types of players, from beginners to high rollers.
Besides players, the state can also profit from online casinos. Namely, online gambling platforms contribute to the economy by creating new jobs, distributing tax money to community service programs, and promoting tourism. Here’s how.
Job Creation
The online casino industry creates jobs for graphic designers, game developers, live dealers, customer support agents, and marketers.
For example, during its first year of operation, the iGaming market in Ontario created over 12,000 jobs. It also played an important role in Ontario’s GDP and labour income by contributing $1.6 billion and $900 million, respectively.
On top of that, by 2031/2032, Ontario’s iGaming industry has the potential to create 22,000 jobs, contribute $4.7 billion in GDP, and generate $2.1 billion in annual revenue.
When it comes to salaries in the online gambling industry, they are 41% higher compared to other industries in Ontario. I.e., the average compensation stands at $103,000 per year.
Taxes
Another thing that, in addition to jobs, makes a big contribution to the Canadian economy is gambling taxes. These taxes are not paid by regular players but by professional gamblers. Money generated through gambling taxes goes into education, treatment programs, and promoting Indigenous culture.
That said, each province imposes different taxes for professional gamblers:
- Ontario: Professional gamblers pay 5.05% to 13.16% tax on their winnings, depending on their income.
- Quebec: 14% or more for incomes over $50,000.
- British Columbia: 5.06% to 20.50%, depending on the income.
- Alberta: 10% to 15%, depending on the income.
- Manitoba: 10.80%, 12.75%, and 17.40%, depending on the income.
- Saskatchewan: 10.50%, 12.50%, and 14.50%, depending on the income.
- Nova Scotia:8.79% to 21%, depending on the income.
- New Brunswick: 9.4% to 19.5%, depending on the income.
- Prince Edward Island: 9.8%, 13.8%, and 16.7%, depending on the income.
- Newfoundland and Labrador: 8.7% to 21.8%, depending on the income.
Community Development
As mentioned above, the Canadian gambling market supports community development programs.
On that note, British Columbia distributes $140 million per year to non-profit organizations via its Community Gaming Grants program. At the same time, the Loyalist Province spends $31 million per year to support problem gambling – they invest $25 million in treatment programs and $6 million in prevention programs.
In addition to that, Ontario municipalities receive a certain percentage of the slot revenue that varies from 0.5% to 5.25%, depending on the total amount. They can also receive 4% of sportsbook and table game revenue.
In Nova Scotia, gambling profits are used to improve infrastructure and fund education, while in Alberta, a portion of the money goes to charities.
When it comes to New Brunswick, during the 2020/2021 period, the province generated $122.8 million in gaming revenue, of which $108.9 million was used to fund education and health programs.
Tourism
Another way the iGaming industry impacts the Canadian economy is through casino tourism. The Great White North currently owns 89 brick-and-mortar casinos, most of which are located in Alberta and Ontario.
The most popular tourist and casino locations include Niagara Falls, with its Niagara Fallsview Casino Resort; Vancouver, with its Parq Vancouver Casino Resort; and Montreal, with its Casino de Montreal.
These cities are not only popular for their lavish casinos but also for their breathtaking views, beautiful architecture, and lively nightlife.
The relationship between the tourism and casino sectors is beneficial to both sides. Thanks to tourism, local casinos get more visitors, which results in higher revenues.
For example, in the 2022-2023 FY, Niagara Falls generated over $19.9 million from gambling and the Ontario Lottery and Gaming gave the city over $3.9 million due to the contribution of the Niagara Fallsview Casino Resort.
Casino tourism is also responsible for infrastructure development. Namely, due to the large number of tourists, cities use gambling profits to improve their transport systems and expand their hotel and accommodation facilities. These investments are of great benefit not only to tourists but also to the local population.
Future Trends That Could Lead To an Increase in the Economy
In addition to the above-mentioned ways in which the online gambling industry affects the economy in the country, we must also mention the technological advances, such as AI and cryptocurrencies, that will help generate higher revenues.
Namely, AI and cryptocurrencies offer enhanced privacy and security, personalized gaming experience, faster withdrawals, and smaller fees, which makes CA online casinos that implement this technology more lucrative to players.
Moreover, more and more casinos are starting to implement Virtual Reality and Augmented Reality to offer their players an enhanced gaming experience, which will only accelerate the growth of the iGaming industry.
An Unbreakable Link Between the Gambling Industry and the Economy
The Canadian gambling industry supports the economy in many ways. First of all, it creates new job opportunities from which game designers, graphic designers, customer support agents, and live dealers can profit the most.
For example, Ontario managed to create about 12,000 jobs in its first year of operation. What’s best, in Ontario, the compensations associated with the iGaming industry are 41% higher compared to other industries.
Another thing that boosts the economy is gambling revenues that contribute to the country’s GDP. Namely, in 2022, the Canadian iGaming industry generated $12.5 billion, while by 2027, this number should reach $912 billion.
We must also mention the gambling taxes that provinces use to support community development programs, like problem gambling, treatment and prevention programs, and education and health programs.
And finally, there’s casino tourism that helps land-based casinos make bigger profits, which they will be able to invest in the development of infrastructure.
Bearing all this in mind, we can conclude that the Canadian iGaming industry will continue to grow, and by implementing new trends, such as AI and cryptocurrencies, it will become even more lucrative in the future.
