Exploring the Growth of UK Gambling Brands in Canada

Posted by Harry Kane on Thursday, May 6, 2021

There’s no doubt that the expansion of the North American iGaming market has created a unique opportunity for UK operators, especially in the wake of Brexit and increased regulatory oversight on these shores.

While brands like William Hill and Paddy Power continue to make waves stateside, however, a growing number of operators are also expanding into the neighbouring country of Canada. This is helping to drive rising service consumption rates for UK brands, which are forecast to grow at a rate of 28% year-on-year.

But what’s behind the rising acceptance of UK operators in Canada, and is this trend likely to continue in the future?

1. An Increasingly Progressive Legal Framework

Canada is definitely a friendly and accepting location from the perspective of legal online gambling, with the iGaming market considered to be both legitimate and safe.

In fact, legality is guaranteed by the country’s federal laws, although the precise laws and restrictions will vary depending on local ordinances and territorial legislation.

Similarly, the so-called “Kahnawake Gaming Commission” (KCG) ensures the safety of players in Canada by registering and licensing sites. Reputable sites are also required to display their licensing information clearly on their homepage, creating a clear distinction between regulated and potentially rogue operators.

At present, there are more than 100 licensed casino platforms that accept Canadian players, creating a sizeable existing market that can benefit from the innovation and technological expertise boasted by UK operators.

Similarly, there’s only a handful of Canadian casinos that lead the national market and offer a truly outstanding customer experience, so there’s also a noticeable gap in the market for established and high-quality brands like William Hill and others.

If Canada continues along this path and looks to adopt the same progressive regulatory approach as the UK, this market will become even more welcoming to British operators in the near-term.

This could pave the way for large-scale mergers and acquisitions across both markets, while helping to forge the type of lucrative liquidity pacts that allows brands to share data and technology across international borders.

2. Cultural Changes and the Acceptance of Society

Make no mistake; online gambling is become increasingly acceptable in numerous cultures across the globe, with Canada no exception to this rule.

Moral objections are certainly being diminished at a societal level, which means that individuals are increasingly willing to spend their disposable income on gambling as a viable leisure activity.

This shift in perception has been triggered by a number of factors, from intelligent and intuitive marketing to the popularisation of entry-level gambling activities such as lotteries.

For years now, approximately 25% of the Canadian population has played at least one lottery game every week, with many of these individuals also being exposed to online casino games and sports betting platforms throughout the digital age.

Of course, online sports betting represents something of a grey area here, not least because sports betting remains illegal at a federal level. However, this doesn’t stop punters in Canada from wagering more than $15 billion per annum on sporting events, creating a compelling case for nationalisation and the rollout of an updated regulatory framework.

This would make the Canadian market even more appealing to UK operators, but there can be no doubt that increased societal acceptance and ongoing cultural shifts in Canada have already created a welcoming environment for British brands.

3. The Advent of Industrial Growth

According to a report by the Canadian Gambling Association, the legalisation of online casino gambling generated more than $16.1 billion across all states.

Incredibly, poker, slots, table games and card game verticals now account for at least $31 billion in annual revenue nationwide, creating a lucrative and fast-growing industry that contributes significant tax revenues for both local authorities and the federal government as a whole.

This type of fundamental industrial growth has helped various stakeholders to monetise gambling to their advantage, apart from individual operators and a select few professional gamblers who wager as a way of generating income.

Not only have UK operators been able to capitalise on this and create a brand-new revenue stream in recent times, but it should also be recognised that the leading UK casinos are capable of improving the overall iGaming experience for both domestic and international players.

This is especially true from the perspective of customer service and instant withdrawals, while UK brands also boast advanced responsible gambling tech and measures that help to maintain safe and sustainable market growth.

This only contributes to a more professional industry, and one that will grow at an even more exponential rate in the future.

4. The Notion of Mutual Compatibility

On a final note, we shouldn’t overlook the innate compatibility that exists between the UK and Canada.

Even on a fundamental level, both countries utilise English as their primary medium of communication, eradicating any potential language barriers between UK operators and their target market.

If you regularly play online at a UK casino, you’ll also notice that most brands on these shores already accept Canadian dollars as a viable payment option.

Similarly, most e-wallets (including global providers like Skrill and Neteller) used by UK-based casinos are also fully operational in Canada, allowing for smooth, transparent and trustworthy transactions that help to safeguard your bankroll!

These factors contribute to a familiar and enjoyable gambling experience for customers across both markets, while allowing a seamless transition for UK operators who want to branch out into the Canadian marketplace.

It’s this same type of compatibility that has enabled UK brands to achieve noticeable success in the North American market, with Americans also sharing a similar language and a widely accepted international currency.

Going forward, this may even allow for liquidity pacts across the UK, Canada and North America, boosting revenues and profitability in the process.