PayPal has a strong presence in many online gaming markets around the world. Why not Canada?

SBC spoke to Ville Saari, lead content manager at casino comparison site Bojoko.ca, about PayPal’s notable lack of footprint in Canadian gaming. Saari believes that the lack of federal gaming regulatory oversight is a big factor.

“PayPal’s policy is to support online gambling transactions only in regions where the industry is fully regulated,” Saari noted. “In Canada, the regulatory framework for online gambling varies significantly across provinces. While some have established their own regulations, there isn’t a cohesive, nationwide regulatory system in place. This fragmented approach doesn’t meet PayPal’s criteria for supporting gambling transactions.”

Saari added that PayPal requires a robust and uniform regulatory environment to ensure compliance and security for its users, both on the customer end and the business end. Canada, he said, simply doesn’t offer that.

“Currently, Canadian players who prefer using PayPal for online gambling transactions have practically no recourse; they just can’t use the payment method,” he told SBC. “There may be exceptions or workarounds, but this is not advised. The best thing they can do is look for alternatives.”

For PayPal to become a more key player in the Canadian market, Saari believes there would need to be “significant changes” to the regulatory framework.

Other options are available

Bojoko offers a guide to the hurdles of using PayPal at casinos in Canada. The resource also list several alternatives with similar functionalities and protections that people who prefer to use PayPal could opt for instead.

Canadian casinos and online gaming utilizes a variety of payment methods, from credit and debit cards to instant bank transfers and INTERAC. Saari noted that PayPal is far from the only e-wallet out there, and the competition is growing.

Still, he said the absence of PayPal is “mainly an annoyance for all parties involved.”

“PayPal is an easy and reputable payment method for casinos to implement, instantly generating trust, and that’s a loss. However, the biggest hurdle is the players needing to test and choose alternatives. It can deter getting started, though once you’re set up and happy with an alternative, it’s business as usual.”