The Spring Edition of Canadian Gaming Business magazine contained the following inaccurate statement: “With Ontario enjoying the success in its private sector model, other provinces are flourishing with the provincial lottery corporations continuing to be the sole legal provider of online gaming.”

The assertion that provincial lottery corporations are the “sole legal provider(s) of online gaming” is highly debatable. It is no surprise that some provincial lottery corporations take this view. The fact is, there is no Canadian case law that has ever found offshore iGaming companies that accept play in Canada to be acting illegally. The lotteries may hold that opinion, but it is just that, an opinion with no evidence to support that claim.

As for the assertion that lotteries are “flourishing”, the Canadian Gaming Association (CGA) recently retained H2 Gambling Capital to research sports betting in Canada. Their report concluded that lotteries capture only 11% of sports betting. Another analysis conducted by Yield Sec found that lottery corporations have captured about 14% of the total online market, while other independent research suggests that lotteries have approximately 20% to 25%. 

Lottery corporations in Canada have historically enjoyed a monopoly on all gambling products. Yet no monopoly could claim to be “flourishing” with a paltry 11-25% market share… floundering may be the more appropriate description.

Troy Ross, TRM Public Affairs

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