Alberta may seem like the frontrunner, but Quebec is also emerging as a contender in the debate over which Canadian province will follow Ontario’s lead in implementing a regulatory model for online gaming. 

Report Reveals Ontario Gaming Model as Solution to Quebec’s Budget Woes

With Quebec facing budget challenges, the government has tasked crown corporations, such as Loto-Québec, with finding cash savings totaling $1 billion. Now, the Quebec Online Gaming Coalition has unveiled a report highlighting the economic benefits of Ontario’s regulatory model.

Chartered accounting firm Mallette conducted an economic analysis of iGaming Ontario for the fiscal year 2022-23, its inaugural year of operation. The report revealed that iGaming Ontario, in collaboration with the Alcohol and Gaming Commission of Ontario (AGCO) and the Ontario Lottery and Gaming Corporation (OLG), generated approximately $230 million in revenue for various levels of government after expenses. Specifically, iGaming Ontario contributed at least $145 million annually to the Ontario government’s coffers. Moreover, OLG’s revenue from online gaming surged by 31% during this period.

The Quebec Online Gaming Coalition, comprising prominent industry players such as Betway, Bet99, and DraftKings, sees potential in replicating Ontario’s success in Quebec. Nathalie Bergeron, spokesperson for the Coalition, emphasized the profitability of Ontario’s model and its ability to address budget deficits. She highlighted that such a regulatory framework not only generates new revenue but also facilitates the implementation of responsible gaming measures.

Quebec’s Gaming Sector Pressure Sparks Interest in Ontario’s Economic Success

The economic impact of iGaming Ontario extends beyond revenue generation. The province experienced a significant boost to its GDP, with nearly $1.6 billion added in the first year alone. Additionally, the industry created over 1,800 jobs with salaries averaging $103,000, well above the provincial average.

The Quebec government faces mounting pressure to modernize its gaming sector, especially considering the substantial revenue leakage to unregulated markets. A November 2023 report from GeoComply revealed that thousands of attempts were made in Quebec to access Ontario-regulated mobile bookmakers during the 2023 NFL season. 

Back in December, GeoComply actually partnered with the Quebec Online Gaming Coalition to safeguard the integrity of the industry and prevent fraudulent access. 

Furthermore, polling conducted for the Quebec Online Gaming Coalition indicated strong support among Quebec-based online gamblers for a licensing system to regulate private-sector operators.In light of Quebec’s fiscal challenges and the Finance Minister’s call for optimization efforts from crown corporations, the Coalition proposes a regulatory framework akin to Ontario’s. Such a model, while tailored to Quebec’s needs, could yield similar economic benefits, providing a viable solution to the province’s budget deficit.

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Finland might be on the way to introducing a licensing model for online gaming. The country, which is the only EU member to still maintain a monopoly over iGaming, just broke ground by introducing a legislative plan to transition to a licensing system.

Finland’s online gaming monopoly, Veikkaus, commented on the matter, expressing its support for the move. According to CEO Velipekka Nummikoski, the company believes that regulation can benefit the whole Finish gaming market.

Nummikoski praised the Ministry of the Interior for what he called the most significant reforms in Finnish gaming yet. He hailed the government’s clear plan of action and said that he hopes that it would be able to channel players toward the legal market.

Under the new legislative plan, Finland will abolish Veikkaus’ exclusivity when it comes to online gambling. Still, the company will retain its monopoly over retail slots and the lottery.

Despite its apparent support of the measure, Veikkaus warned that the transition to a licensing model will likely lead to redundancies, forcing the company to restructure its business, close properties and lay off workers. According to the company’s estimates, as many as 240 employees may lose their jobs.

A New Age for Finnish iGaming

If Finland introduces a regulated gambling model, Veikkaus will split into two companies within the same group. One of the newly-formed entities will be Veikkaus’ arm which will retain its monopoly over retail slot machines and the lottery, while the other joins the competitive online market.

The Finnish government’s plans to introduce a licensing model come amid strong support for the introduction of regulated gambling. However, the transition process is set to take a few years at the very least. Under the current plans, the Ministry of the Interior will take two years to draft a legislative proposal for regulated iGaming.

The proposal will cover important matters, such as what games should be legalized, what the licensing and tax fees for online operators should be and how Finland would protect consumers from harm.

Finland’s decision to explore the possibility of introducing licensed online gaming marks a historic turning point for the country and will align it with other EU member states that use similar models.

The move was praised by the European Betting and Gaming Association, which highlighted that a licensing model will bring many benefits to Finland, including improved channelization rates and better player protections.

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Finland is considering a possible modernization of its online gambling laws. The European country is currently considering a licensing model like the ones used by most modern gambling markets.

Finland’s intentions were announced by the country’s Ministry of the Interior. The ministry introduced a legislative project that, if advanced, could replace the current monopoly with a licensing system. The move was loudly praised by the European Gaming and Betting Association (EGBA), an industry body representing Europe’s top iGaming companies.

Finland’s legislative project would draft proposals needed to make the transition to a licensing system. As a result, it will cover a number of important aspects, such as what activities will be legalized, what the taxes and fees for operators will be and how Finland will prevent gambling harm.

According to the EGBA, the Ministry of the Interior’s project will run through December 31, 2025, and will lead to the introduction of a legislative proposal in spring 2025.

The Move Would Align Finland to Other EU Member States

For reference, Finland is the only member of the European Union that still sports a monopoly regime for online gambling activities. The system’s deficiencies have become apparent in recent years with customers demanding more varied content and migrating to offshore websites.

This tendency has caused the country to lose control of the iGaming market and miss out on potential tax money.

According to the EGBA, the transition to a licensing model would benefit the Finnish market. The association expressed its support for the newly introduced legislative project, saying that it has the potential to increase player protection while boosting tax revenues. At the same time, the move would create a level playing field for operators.

The EGBA’s secretary general, Maarten Haijer, commented on the matter, saying that it is a “welcome step toward meaningful and overdue gambling reform” in the country. He highlighted the multiple boons a licensing model would bring, noting that it would also align Finland with other EU member states.

We look forward to continuing dialogue with the Finnish Government and local stakeholders as the regulatory discussions develop.

Maarten Haijer, secretary general, EGBA

As Finland considers the introduction of a licensing model, Norway continues its efforts to protect its monopoly systems, proceeding with its DNS blocking plans.

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