The iGaming industry, encompassing online casinos, sports betting, and other forms of online gambling, has seen tremendous growth worldwide. Currently, the United Kingdom and Canada are two of the largest consumers in this sector, and they have their own rules and trends, as well as their own preferences among players. Although both countries have similarities in terms of the relationship they have taken toward iGaming, there are distinguishing differences that separate them. This article will concentrate on various aspects of the iGaming sectors of the UK and Canada to draw attention to the peculiarities of each of those markets.
Regulatory Framework
United Kingdom: A Mature and Structured Market
iGaming has been legal in the UK for some time now and is one of the most regulated markets globally. Regulated by the UK Gambling Commission (UKGC), this market complies with highly effective rules and regulations aimed at safeguarding the players. The UKGC is known for its strict licensing requirements, which include rigorous checks on operators’ financial stability, game fairness, and, of course, responsible gambling features. The body also regulates all forms of online gambling, including casinos, sports, bingo, and lotteries. Players can easily navigate the world of iGaming with sites that offer guides for those new to this industry, for example, CasinoHawks is a comparison site for online Casinos in the UK and helps players find a casino that best suits their preferences. Additionally, the UK government imposes a 21% tax on operators, which contributes to the country’s economy.
Canada: A Diverse and Evolving Landscape
On the other hand, the iGaming market in Canada is much more decentralized as each province jurisdiction governs the online gambling primarily in the region states. It has therefore resulted in a great deal of diversification, there being great differences from one province to another in terms of legislation. For instance, recently the new market for regulated iGaming has been opened in Ontario for private operators, while other provinces such as Quebec and British Columbia have their own government-provided platforms. Since there is no single body that regulates the Canadian market to the extent of the UKGC, there can still be significant fluctuations in the particular province’s openness to private operators. Still, Canadian jurisdiction does not introduce a federal iGaming tax for operators, which can be considered as a plus for the industry.
Market Size and Growth
United Kingdom: A Saturated and Competitive Market
The UK’s iGaming market is one of the largest in the world, with an estimated annual revenue of over £14 billion. The market is therefore highly saturated with hundreds of operators in the industry competing for market share. The UK has been in the legal gambling business for decades, has a high internet connection and most of its users own smartphones thus the market is already quite saturated. However, this saturation also means that growth is slowing down, with operators focusing more on retention strategies rather than acquiring new players.
Canada: A Market with Untapped Potential
Although currently much smaller compared to that of the UK, the market for iGaming in Canada is expanding at a very fast rate. The projected annual revenue comes to approximately US$4.19bn in 2024. Ontario’s regulated market has opened up new opportunities for growth, attracting international operators eager to capitalize on the country’s growing demand for online gambling. Furthermore, the present saturation in Canada is much lower than that of the United Kingdom, suggesting that there exists immense growth potential for iGaming companies in Canada, especially in provinces, which the industry has not aggressively penetrated.
Player Preferences
United Kingdom: A Diverse and Evolving Player Base
iGaming is preferred by UK players in different ways; however, sports betting attracts most UK players to the iGaming arena. Football takes the share of all the sports bets, followed by horse racing and tennis. Online gambling is also preferred by many people with games such as slot, blackjack, and roulette being most preferred. In the UK it has become a rather dynamic market where players are changing, and younger players, for instance, are more interested in esports betting and mobile gaming.
Canada: A Preference for Traditional Forms of Gambling
Canadian players, on the other hand, tend to favor more traditional forms of gambling. Lotteries are the most popular, followed by sports betting and casino games. Hockey has the biggest share in the total sports betting consumption in Canada, this is in line with the historical and cultural attachment of the Canadians. Nonetheless, due to the existing change in the market, there is increasing attention towards online casinos and other related options like esports and Live Dealer games. The relative options available to players across the country are heterogeneous due to regional regulation, with players in different provinces having access to different types of iGaming platforms.
Final Thoughts
When comparing the iGaming markets of the UK and Canada, both of these areas have a significant focus on the protection of the players and the increased popularity of online casinos. But there are striking disparities, mainly concerning the rules of operation, the markets, and the customers within them. In the UK the iGaming market is more developed and highly controlled as compared to Canada where the structure is dispersed and changing. Having seen the growth of the iGaming industry in Canada, it will be quite intriguing to understand how Canada’s industry will unfold and if it will mimic UK practices. For operators and players alike, understanding these differences is key to navigating and succeeding in these dynamic markets.
