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The decision by Ontario to alter its regulations regarding online gambling and the further legalization of activities including single sports betting and wagering on iGaming titles such as slots and table games will have generated a discussion about whether the entire country - or at least other provinces - should look to follow in its footsteps.

Of course, following the launch date of this new regulation on April 4, 2022, there will be a number of eyes fixed on what the early results show and what can be achieved after changing the rules in regard to the online gambling industry, with the most-populous province perhaps the best place to begin for the rest of the Maple Leaf country.

Early estimates suggest the economy could thrive across Ontario and Canada

Indeed, early estimates are thought to be highly favorable for the economy across a provincial level, and at the country level, too. It has been suggested that Ontario is expected to generate about $800 million in gross revenue this year. It has also been suggested by a report from Deloitte Canada that the single-event sports betting market in Canada could grow to close to $28 billion within five years if it were to be fully legalized.

Nonetheless, the question of whether or not to legalize online gambling in Canada is a hotly contested one. On the one hand, there are those who believe that doing so would open up a whole new world of opportunities for Canadian businesses. After all, it would provide a legal and regulated way for people to gamble online, which would, in turn, generate more revenue for the government and create new jobs.

At this point, the issue of legalizing online gambling in Canada is still very much up for debate. There are many different perspectives on the matter, and it will likely be several years before a final decision is made either way. 

However, in the meantime, there are some important things to consider when thinking about this topic. For example, how would legalizing online gambling affect existing businesses? What impact could it have on society as a whole? And most importantly, what does the evidence say about whether or not this type of legalization is actually beneficial for Canadians?

Some believe the legalization of online gambling will help other businesses to thrive

While there are still many questions about how exactly online gambling will be regulated, some experts believe that the change could provide opportunities for other industries to grow and thrive.

One potential impact of legalized online gambling is increased consumer spending on related products and services. For example, if more Canadians begin to gamble online, they may also spend more money on things like entertainment, food, and travel. This could help boost the economy by creating new jobs and driving consumer spending at other businesses.

Additionally, it could have a positive impact on the tourism sector. Although the gambling industry would all be online, visitors from around the world could easily contribute to the economy and help other business industries to thrive further.

Gamers could enter the country from the U.S. and begin to play their favorite games if they live in a state where online gambling is not permitted, whilst it could be an activity that many who visit the country could enjoy as a pastime whilst they have some free time in the region.

Another possible benefit of legalized online gambling is a reduction in illegal or "black market" activity. With legal options now available, it is possible that some people who previously gambled illegally will switch to legal channels. This could lead to less crime and improved public safety, as well as helping to ensure that gambling revenues are collected by the government.

Indeed, if more people are using the legal Canadian online casinos that have been made available to them, then there would - theoretically - be less to be concerned about from a governmental point of view, whilst it could encourage newer players to game whilst also make the country more appealing to operators who wish to set up in the country and provide their services.

Of course, it is still too early to say definitively how online gambling will affect businesses in Canada. However, the potential benefits suggest that it is worth exploring further as people will point to the fact that so many countries around the world have already been able to benefit economically in a variety of different ways, suggesting at the same time that Canada needs to arrive at the party as soon as possible, otherwise they will continue to miss out.

Are there any drawbacks that need to be considered?

On the other hand, there are those who worry that legalizing online gambling would have a negative impact on other businesses, such as casinos and lottery corporations. They argue that if people can gamble online legally, they will be less likely to visit brick-and-mortar establishments, which could lead to job losses and decreased revenue for these businesses.

Another negative consequence of legalized online gambling could be an increase in problem or compulsive gambling, which could have a knock-on impact on businesses. People could end up having less disposable income to spend on certain things, which could ultimately have an impact on businesses within industries that might be considered a luxury.

Some would argue that this is a bit of a stretch, however, there is no denying that those business sectors could all be impacted.

Final Thoughts

Despite these questions and concerns surrounding the legalization of online gambling in Canada, it seems clear that doing so has significant potential to benefit our economy and our society as a whole. As more countries around the world begin to embrace online gambling, it is becoming increasingly important for Canada to consider where we fit into this rapidly changing landscape. 

In the end, the legalization of online gambling could be a major step forward in terms of economic growth and innovation, although it would only be possible if it is done carefully and responsibly.