Quebec’s Online Gaming Revenue Leakage: A Call for Regulatory Reform

At the forefront of discussions at the Canadian Gaming Summit in Toronto was the alarming revelation that Quebec is facing a significant loss in gross gaming revenue, estimated at CAD $1.97 billion, to the unregulated market. This loss not only represents a substantial financial hit for the province but also underscores a broader challenge within Canada’s online gaming sector. The dialogue, spearheaded by Troy Ross, President of TRM Public Affairs, and featuring insights from Patrick Harris of Rubicon Strategy, Ariane Gauthier of the Quebec Online Gaming Coalition, and Jill Walker of GW Group, focused on the future of iGaming in Canada, with a particular emphasis on the need for regulatory reforms in provinces like Quebec, Alberta, and B.C.

Comparative Analysis of Player Channelization

The summit revealed stark contrasts in player channelization into regulated markets across Canada. Ontario leads with an impressive 84%, while Quebec lags at a modest 27%. The figures for B.C., Alberta, and Atlantic Canada are 24%, 10%, and 25%, respectively. These discrepancies highlight the urgent need for Quebec to enhance its regulatory framework to improve player safety and recapture lost revenues.

The Quebec Online Gaming Coalition’s Role

Ariane Gauthier highlighted the challenges unique to Quebec, noting the deep cultural and economic roots of institutions like Loto-Quebec. Despite their importance in preserving Quebecois heritage, there’s a growing acknowledgment of the need for a shift towards a more competitive and private market model. The Quebec Online Gaming Coalition, formed in May 2023 with industry giants such as Betway, Bet99, and DraftKings, aims to collaborate with local stakeholders and government bodies to develop a regulatory framework that competes effectively with Loto Québec, the province’s current sole legal online gaming operator.

Key Takeaways

1. Quebec experiences a significant loss of CAD $1.97 billion in gross gaming revenue to the unregulated market.
2. Ontario leads in player channelization into regulated markets with 84%, while Quebec has only 27%.
3. The Quebec Online Gaming Coalition is pushing for a regulatory reform to enhance player safety and compete with Loto Québec.

FAQs

1. What is the Quebec Online Gaming Coalition?

   A coalition formed by industry giants to collaborate on developing a competitive regulatory framework for online gaming in Quebec.

2. How much revenue is Quebec losing to the unregulated market?

   Quebec is losing approximately CAD $1.97 billion in gross gaming revenue to the unregulated market.

3. What is player channelization?

   “Channelization of players denotes the ratio of individuals betting in a regulated environment as opposed to an unregulated setting.”

4. Why is regulatory reform important for Quebec?

   Reform is crucial for enhancing player safety, recapturing lost revenues, and ensuring a competitive market against governmental monopolies.

“While progress may be gradual, the conversation is now alive in Quebec regarding regulating the grey market. This shift signifies a promising step forward in challenging status quos and moving towards a regulated gaming environment that benefits all stakeholders involved.” – Ariane Gauthier