The Klondike Gold Rush started in 1896 in Canada’s Yukon Territory, drawing in an estimated 100,000 prospectors from all around the world.
When it ended in 1899, over 20 million ounces of gold had been extracted from the ground providing a US$29 million ($1.16 billion adjusted for inflation) to the global economy.
The latest gold rush in Canada, is that of regulated online gambling and by the time it is done, it could dwarf the returns of the Klondike Gold Rush. The British Columbia Lottery Corporation (BCLC) has projected net income from the domestic, online gambling sector could exceed CAD$1.5 billion by 2029. That’s just in one province. In this article we look at what is behind that projected growth, what it means for the future of the industry, and for the wider Canadian economy.
The Inside Story of BCLC’s Project Growth Figures
The key and perhaps most obvious factor behind this startlingly high projection is the current, and future expansion of the online gambling industry in Canada.
Across the country, licensed and regulated online gambling has the potential to bring in billions and billions of dollars in revenues over the coming years and decades. British Colombia in particular is thriving, with gambling review sites like Casino.ca listing their recommended BC casino sites, the information on each site is regularly updated to help players in the region find safe and reliable online gambling options. They highlight new operators, which appear to be springing up all the time, as well as advising which operators to be wary of.
Presently, we are on the cusp of an explosion in the growth of the domestic industry with legislative changes set to bring Canadian gambling in line with other modern western countries like the UK and France. Globally, there’s also a huge trend shift towards online gambling, be it slots, table games or sports betting, which is largely being led by our growing reliance on our mobile devices.
The Specific Role of iGaming in Revenue Growth
The true movers and shakers in gambling revenues tend to be sports betting and lotteries. In the UK, the global home of online gambling, these two sub-sectors provide the largest share of the revenues.
Making up a substantial amount of revenues though (a third in the UK and higher in France) is the online casino sector, which is largely powered by the massive revenues of online slots. Year on year, we are seeing revenues from online casinos outperforming lotteries and sports betting in simple growth. It’s speculated that this is a result of the relentless modernisation and technological innovation employed by the remote casino sector.
Live dealer games and even virtual and augmented reality casinos could see the online casino industry further grow in coming years.
Non-Gambling Digital Innovations Working in Tandem with Gambling Innovations
Not only are we seeing a huge advancement in technological innovations from within the online gambling industry, but we’re also seeing the same level of progress from outside.
Technology is moving at a rapid rate, and with-it consumers are getting access to more and more convenient and enticing features. Mobile first gaming and instant secure payment systems incorporating cryptocurrencies are regular run of the mill features now that are changing consumer behaviour.
These changes in habits and wants from consumers will only serve as a drive for companies to increase their innovations and growth.
The Economic Impact of iGaming Expansion
The global economy isn’t what it once was. 50 years ago the announcement that a new industry would bring in $1.5 billion in revenue would have been a major boon for the national economy.
It would have provided tens of thousands of direct jobs into the economy, and tens of thousands of indirect jobs as well. In the modern world, we are much less likely to see a similar impact.
The growth of online gambling in Canada will provide an injection of jobs and an injection of tax dollars. But that comes with one caveat – neoliberal free market economics. If the government decide to stick to the principles of neoliberalism, then there will be huge amounts of money being made, but most of it will be made by large multinational companies that pay their taxes offshore.
A protectionist economic model that incentivizes domestic talent and places checks and balances on overseas providers could have enormous benefits for the Canadian economy.
Let’s hope that the government makes the right decision for Canadians…
