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Major international firm exits Canadian market

Online gambling remains something of a grey area in Canada in comparison to the UK.

Last month British bookmaker Ladbrokes elected to cease offering its services to the Canadian market. Players were told out of the blue that no deposits from Canadian bank accounts would be accepted after October 1st and a 30-day cooling off period was offered to clear balances and outstanding wagers.

The news came just months after the British Government's Gambling Act attempted to crack down on betting firms based offshore but utilizing the UK market.

Many large-scale gambling firms operating in the UK base their operations in tax-friendly locations such as Gibraltar.

Under new laws, all operators who wish to offer games in the UK will have to be licensed by the UK Gambling Commission as a part of the new regulations.


Across all its operations Ladbrokes is largest retail bookmaker
in the world. This month they stopped offering their services in
Canada.
~ Tim Green aka atoach

Growth of Online Casinos in Canada

Historically, gambling laws in Canada were very strict. Only very limited forms of gambling were allowed. However, drastic changes to legislation in the 1970s relaxed things quite significantly.

Some Canadian provinces operate their own online casinos, however it is illegal is to provide online gambling services of any kind to Canadian citizens unless approved and licensed by the government. As with the majority of western culture, online gambling is hugely popular in Canada.

For example, players can play real money slots at Casino shorts where Net Ent Slot Games has brought the world's most famous animated sitcom, South Park, to life as it follows the adventures of Kyle, Stan, Kenny and Cartman across its 25 lines.

Big Names exit Canada - some key multinationals have left the Canadian market recently

  • Ladbrokes
  • Betfred
  • Interpoker
Under current Canadian law there is an apparent grey area whereby companies that are based and operated overseas allow Canadians to use their gambling sites. Reports suggest the Canadian Government is considering legislative changes.

Change to UK Gambling Laws

Ladbrokes move is part of a recent trend that has seen major UK-facing online gambling operators retreat from Canada and other foreign markets.

The trend could be linked to the new point-of-consumption tax in the UK, which now requires operators that wish to engage with the British market to be licensed, regulated and taxed in the UK, rather than, as had previously been the case, a government white-listed international jurisdiction. There are frequent reports that the Canadian government is discussing, or at least considering, introducing changes to legislation relating to online gambling.

Such changes could remove the apparent grey area whereby companies that are based and operated overseas allow Canadians to use their gambling sites.

On a strict interpretation of Canadian law, such practices could be viewed as illegal. However, any company not based in Canada would not be subject to Canadian laws.

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