The United States sports betting market has boomed since it was legalized in 2018. The same outcome is expected in Canada after the approval of Bill C-218, known as the Safe and Regulated Sports Betting Act.
Parlay betting was legal in Canada, but the legalization of single-game wagers gives the provinces the ability to enact betting. This will bring many Canadian betting sites to the country, causing the market to explode.
Single-game wagers in Canada
Parlay betting was popular in the nation, but single-game betting will make the nation’s market more rounded. It will also cause more people to bet on sports, giving the legislature large tax figures to utilize in the country.
Single-game sports betting was approved in Canada on August 27. The bill passed in the Senate by a 57-20 margin, giving provinces the ability to decide on sports betting. This bill legalized single-game bets for all events except for horse racing.
Paul Burns, President and CEO of the Canadian Gaming Association, spoke about the significance of the decision in the government. He has been pushing for single-game wagers since the United States Supreme Court ruled that the Professional and Amateur Sports Protection Act was unconstitutional.
He said, “This is a major milestone and achievement for the Canadian gaming industry. The CGA has been working to legalize single-event sports betting for more than ten years, and Bill C-218 benefited from a groundswell of broad stakeholder support from across Canada. The need for regulation, oversight, player protection, and the creation of economic benefits for Canada was understood by everyone involved in the legislative process, which is why the Bill was successfully passed.”
Canada has the potential to be a large market for multiple reasons. There was already sports betting in the nation through parlays, so people are familiar with legal betting. Offshore sportsbooks also have the chance to become regulated in the nation, adding to the number of books that can apply.
Additionally, Canada has a population of 38 million people with vastly different rules than in the United States. This will give operators a chance to create lucrative opportunities in the nation.
Expected financial return
Sports betting will be decided in the individual provinces, but sports betting is not taboo in Canada. This should make each section of the nation open to authorizing single-game wagers. According to PlayCanada, the best-case scenario for sports betting is a $25 billion retail and online annual handle.
This estimate would be for the third full year of legal sports betting in the nation. Over 80% of the handle would come through online betting, which is apparent by the United States’ split.
If the market collected this number of bets, $2 billion would be generated in operator revenue, creating somewhere between $200 and $400 million in annual tax collections. The largest market in the nation will be Ontario, which should generate $11 billion in bets by itself and over $800 million in annual operator revenue.
If this were the case, it would be one of the largest markets in North America, rivaling New Jersey and Nevada in the US.