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The Economic Impact of Online Poker on Canada’s Gambling Industry

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Canada’s online gambling market pulled in $2.64 billion in 2021, with nearly half of that coming from online formats. That figure grew to $3.1 billion by the end of 2023, reflecting the industry’s steady expansion. Meanwhile, offshore sites rake in over $4 billion annually from Canadian players, highlighting the significant outflow of gambling revenue to unregulated platforms.

In Ontario alone, online poker generated $11.7 million in revenue in the first quarter of 2024. Across the country, wagers on online poker exceed $100 million annually, a small slice of Canada’s total gambling market, which surpasses $12.5 billion each year.

Ontario’s regulated system has successfully retained over 85% of its players on locally licensed platforms, setting a precedent for other provinces. As a result, many regions are now considering similar regulatory approaches to keep tax revenues within Canada while ensuring a safer gambling environment for players.

The Role of Tournaments in Driving Revenue

Large-scale poker tournaments have played a pivotal role in shaping Canada’s gambling economy, generating millions in prize pools and boosting tourism. The World Series of Poker (WSOP) Circuit event in Toronto drew over 5,000 entries and awarded more than $5.5 million in 2024, further cementing poker’s economic influence. Similarly, the annual World Poker Tour (WPT) in Montreal attracts both local and international players, significantly benefiting casinos and the hospitality industry.

Online poker in Canada continues to grow steadily amid these live tournaments. Online platforms host major events with guaranteed prize pools that attract thousands of players. This dual presence of live and online tournaments reinforces poker’s financial impact on Canada’s gambling sector.

Employment and Industry Development

The expansion of online gambling has led to the creation of approximately 7,000 new jobs in 2023. From game developers and cybersecurity experts to customer support teams and marketing professionals, the industry has fostered employment growth across various sectors.

Additionally, investment in Canadian gaming studios such as Old Skool Studios, Zartek, and Pear Fiction has surged. These companies play a crucial role in developing innovative gaming content, ensuring a steady influx of new titles that keep players engaged while keeping revenue within Canada’s economy.

Beyond direct employment, gambling revenues support social programs. British Columbia, for instance, allocates $140 million annually from gambling revenues to fund community projects. Other provinces have implemented similar initiatives, demonstrating the broad societal benefits
of the industry beyond casino profits. Other provinces have varied approaches for distributing these funds.

Legal Framework and Consumer Trends

Ontario remains a leader in online poker regulation, with iGaming Ontario overseeing operations and maintaining strict compliance measures. The province saw $14 billion in wagers from 920,000 registered players in early 2023, growing to $17.2 billion by the year’s end, generating $658 million in revenue.

Nationwide, about 30% of adults are registered on at least one online betting site, with a demographic skew toward players aged 30 to 50 years old. Men account for 56% of users, reflecting a gender-based trend in online poker engagement.

With the growing acceptance of online gambling, provincial governments are increasingly considering regulatory frameworks to provide safer, locally governed alternatives to offshore platforms. Esports betting is also gaining traction, with expectations that it will become a significant market segment by 2025.

Mobile and High-Tech Gaming Expansion

The shift towards mobile gaming has redefined player behavior. More gamblers now prefer smartphones over desktops, prompting online casinos and poker sites to optimize their mobile platforms for seamless accessibility.

Artificial intelligence has been incorporated into several aspects of online gambling, such as personalized game recommendations and automated customer support. Additionally, blockchain technology has improved transactional security and payout speeds, ensuring greater transparency for players.

Looking ahead, virtual reality (VR) and augmented reality (AR) are expected to play a more prominent role in online gambling, creating immersive experiences that simulate real-world casino environments. These advancements will likely drive further engagement and attract a younger demographic of tech-savvy players.

The Economic Challenges and Future Prospects

Despite its growth, Canada’s online poker industry faces key challenges, particularly regarding offshore gambling competition and regulatory discrepancies across provinces. Offshore operators continue to attract Canadian players, diverting potential tax revenue away from local
governments. Addressing this issue through a nationwide regulatory approach could help Canada maximize the economic benefits of online poker.

Additionally, the gambling industry’s relationship with responsible gaming initiatives will be crucial in ensuring sustainable growth. With the rise in problem gambling awareness, implementing more robust player protection measures and responsible gaming campaigns will be essential.

The future of online poker in Canada looks promising. As more provinces explore regulatory frameworks, the industry is poised for further expansion, bringing new jobs, increased tax revenues, and enhanced consumer protections. Continued technological innovation and tournament expansion will further solidify Canada’s position as a significant player in the global online poker market.

Conclusion

Online poker plays an integral role in Canada’s gambling industry, contributing millions in revenue, job creation, and technological advancements. With Ontario leading the way in regulation, other provinces are likely to follow suit, fostering a safer and more profitable gaming environment.

However, addressing offshore gambling competition and strengthening responsible gaming measures will be crucial in maintaining industry stability. As mobile gaming, AI, and blockchain continue to evolve, the online poker market will remain a key economic driver in Canada’s gambling sector for years to come.

By fostering regulatory expansion, technological innovation, and responsible gaming practices, Canada can ensure the continued success of its online poker industry, keeping revenue within national borders while offering a secure and engaging experience for players.

Todayville Content Team works with a wide variety of clients to develop compelling content solutions. Our experienced team develops strategic campaigns that use video and storytelling, digital advertising and social media to help our clients position and distinguish themselves in the market.

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Alberta

From Underdog to Top Broodmare

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WATCH From Underdog to Top Broodmare (video)

Executive Producers Jeff Robillard (Horse Racing Alberta) and Mike Little (Shinelight Entertainment)

What began as an underdog story became a legacy of excellence. Crackers Hot Shot didn’t just race — she paved the way for future generations, and in doing so became one of the most influential producers the province has known.

The extraordinary journey of Crackers Hot Shot — once overlooked, now revered — stands as one of Alberta’s finest success stories in harness racing and breeding.

Born in humble circumstances and initially considered rough around the edges, Crackers Hot Shot overcame long odds to carve out a career that would forever impact the province’s racing industry. From a “wild, unhandled filly” to Alberta’s “Horse of the Year” in 2013, to producing foals who carry her spirit and fortitude into future generations.

Her influence ripples through Alberta’s racing and breeding landscape: from how young stock are prepared, to the aspirations of local breeders who now look to “the mare that did it” as proof that world-class talent can emerge from Alberta’s paddocks.

“Crackers Hot Shot, she had a tough start. She wasn’t much to look at when we first got her” — Rod Starkewski

“Crackers Hot Shot was left on her own – Carl Archibald heard us talking, he said ‘I’ll go get her – I live by there’. I think it took him 3 days to dig her out of the snow. She was completely wild – then we just started working on her. She really needed some humans to work with her – and get to know that people are not scary.” — Jackie Starkewski

“Crackers Hot Shot would be one of the top broodmares in Albeta percentage wise if nothing else. Her foals hit the track – they’re looking for the winners circle every time.” — Connie Kolthammer

Visit thehorses.com to learn more about Alberta’s Horse Racing industry.

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KYC in Casino Gaming

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KYC, which means “Know Your Customer,” has become one of the most important systems in casino gaming today. In the early days of online gambling, players could simply sign up, deposit money, and start playing without giving much personal information. But as online casinos grew, so did the need to confirm who was playing, how they were paying, and where their funds came from.

This change was not sudden. It came through years of regulation, fraud cases, and technological improvement. Even $3 minimum deposit casinos now use KYC to make sure their players are verified and protected.

How KYC Began in Casino Gaming

In the late 1990s the internet was still in its early days, and online casinos came into the picture with hardly any rules regarding identity verification. Security was not a primary concern for gambling platforms, which were mainly occupied with game development and player attraction.

Fraud and underage gambling activities were rampant at that time. Stolen credit cards were being used by some players while others were using fake identities to get through age restrictions.

Regulators soon pointed out that a total lack of control could lead to bigger issues like money laundering and illegal transfers. So, new rules were imposed by the government and one of them was to get the casinos to collect the most basic player information including name, address, and date of birth.

These details, however, did not do much to prove that the players were actually human beings. Nevertheless, it was still very far from what KYC would later turn into.

The Rise of KYC Laws and Regulation

As online gaming spread across Europe and other regions, regulators made stricter laws. They wanted casinos to take responsibility for who was playing on their platforms.

Around the mid-2000s, KYC laws became mandatory for any casino that held a license. This meant players had to submit documents like passports or utility bills to prove their identity and location.

It was not always smooth. Many players disliked sending personal documents online, especially when the internet still had many privacy risks. Casinos also found it challenging to process thousands of verification requests.

But as technology improved, so did trust. Encryption became stronger, and online platforms became safer. This marked the true beginning of proper KYC systems in casino gaming.

Why KYC Became So Important

The goal of KYC is simple. It makes sure gambling stays safe, legal, and fair. With KYC, casinos can stop criminals from using their platforms to clean illegal money.

It also protects players by preventing identity theft and underage gaming. Over time, players began to understand that KYC was not just about restrictions. It was about protection.

A verified account means that a casino can return funds to the rightful owner if there is any problem. It also helps regulators ensure that every transaction is transparent and traceable.

In short, KYC built the bridge of trust between casinos and their players.

Technology Transformed the KYC Process

KYC was initially a hand-operated process. Players needed to upload their document’s scanned copies. The casino personnel then manually checked them. This process could last for days and even weeks sometimes.

However, technology has completely altered that scenario. Currently, most of the casinos make use of KYC automatic verification systems powered by AI.

These systems can read and verify an ID within seconds. The system checks its authenticity and even compares the image to a selfie taken by the player.

There are also some casinos that go for biometric verification as well. Players use their fingerprints or facial recognition to verify their identity.

Moreover, blockchain technology has started to play a role in KYC. The use of blockchain ensures safe storage of identity data. Players can provide it to the casinos without having to resend the same information over and over again.

This not only saves time but also keeps user data secure.

Challenges That Still Exist

Even though KYC has come a long way, it is not perfect. Some players still struggle with the verification process, especially in countries where official identification is hard to get.

Others worry about data security and how casinos store their personal information. Casinos face the challenge of balancing speed and safety.

They need to verify players quickly without making the process so strict that it drives them away. The rise of global players also means casinos must follow different KYC laws in different countries. This can be complex to manage.

The Future of KYC in Casino Gaming

The next stage of KYC looks even more advanced. Artificial intelligence will continue to play a huge role. It will help casinos detect fake IDs and spot suspicious activity automatically.

We may also see more global identity databases. They will make cross-border verification easier and safer.

In the future, players could control their own KYC data through secure digital wallets. They can choose which casino to share their identity with. This will keep privacy fully in their hands.

With this kind of progress, both players and casinos win.

How KYC Strengthens the Trust Between Players and Casino

KYC has undergone a radical transformation from being a mere requirement to being the mainstay of trust in online gambling. It is the one that assures clean money, fairness in games, and safety for players. Online gambling would otherwise be a scene of chaos, fraud, and continuous disputes.

KYC compliance and casinos having better verification systems are proving to be very active in promoting and maintaining the integrity and transparency of the industry. KYC has transitioned from being merely a concept to being a pillar, and it continues to regulate the gaming world.

The casino gaming universe is in a state of flux and the pace is quicker than ever. KYC is among the main reasons for this. It is the backbone of a safe, fair, and responsible gambling practice. It not only protects players but also the gaming platform, thus providing a trust-building environment for the online gaming industry to expand.

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