The Canadian dollar enjoys very good reputation in financial circles and is used more frequently than you might expect for the currency of a relatively small country. It’s not rare for online payments to be
accounted in CAD on many different websites ranging from e-commerce stores to online casino sites.

There are several reasons why this is the case, and to truly understand the role that the Canadian dollar plays on the international scene today we need to look back at the early days of this currency. Canada’s past and present relations with other nations has shaped how Canadian money is used, and continues to affect its value in the era of digital trading without borders.

Brief History of the Canadian Dollar

Before it became a sovereign nation, Canada was trapped economically between its colonial master and its large neighbor. During the colonial era, several North American provinces that are today part of Canada found it impractical to use imperial money and created their local versions of the US dollar. In 1858, the Canadian dollar was established and almost 10 years before Canada became a country, the burgeoning nation replaced local currencies with its own money.

Originally the Canadian dollar was tied to the gold standard, but this practice was disrupted during
World War I and completely discontinued in 1933. In the post-war period its value was sometimes
pegged to the US dollar, with the rate changing over time but never getting too far from parity. This too was deemed too limiting, and after the 1950s CAD was allowed to have a floating value based on supply and demand in the market.

Today, CAD 100 is worth around $US 75, so whenever prices are shown in Canadian dollars their cost in the American equivalent is around 25% lower. A similar rate is maintained on exchanges across the
world, and Canadian dollars can be swapped for practically any other currency. Canadian dollars are
currently available in bank notes worth between $1 and $1000, while coins are still available for smaller denominations. The Bank of Canada is considering the possibility of issuing a digital version of CAD in the future, but there are no immediate plans to do so.

How Is CAD Regarded Today in Global Trade

Throughout its existence, Canadian dollar has proven to be exceptionally stable. It never experienced
large fluctuations in value as consequence of hyperinflation or other economic problems, and its rate vs. the US dollar has remained roughly similar for decades. This is in part because Canadian economy is strongly connected with the US, but also because the country exercises good financial governance and manageable levels of public debt.

Due to its status as a reliable and convertible currency, CAD is readily used for international transactions that involve Canadian companies or government. It is frequently used between third parties as well.  However the CAD is not on the same level in this role as $US, Euro, or Pound Sterling and is more similar by volume to Swiss franc and Singapore dollar. Many foreign banks also prefer to keep a portion of their reserves in Canadian dollars because of the low likelihood of a sudden loss of value.

A case from 2012 provides a great illustration of the reputation for stability that Canadian dollar enjoys. During a financial crisis in Iceland, there was a proposal for the tiny island nation to adopt CAD as its legal tender. While the plan was eventually abandoned, the fact that a foreign nation had a higher opinion about Canadian currency then its own is very telling.

The Role of CAD in Online Payments

Much like in traditional trading, Canadian dollar plays a significant role in online commerce. For online transactions within Canada, CAD is the default currency but it is also commonly used to pay for goods or services distributed internationally. Almost all leading digital payment services such as PayPal or Skrill support transactions in CAD, which means money can be instantly sent anywhere in the world. That greatly benefits Canadian citizens and others who keep their money in CAD as it allows them to save on conversion fees.

The penetration of CAD on online marketplaces is also considerable, but less than ideal. In general, you can pay for a lot of things on the internet without conversion since many companies based
elsewhere in the world are happy to accept Canadian money. Many online casinos, like  these slots in Canada, list CAD as one of supported currencies so you can just deposit your cash and not worry about
the exchange rates.

It’s fair to say that Canada is already punching above its weight when it comes to facilitating online
trade, but it could do even better. A concerted effort to promote the use of CAD outside of the country
could create additional benefits for the economy and fortify the value of CAD against American dollar
and other top currencies. It will be interesting to see how a national currency that’s almost two
centuries old will adapt to the changing landscapes of online commerce.

Alberta has announced plans to permit private companies to operate online gambling platforms. This regulatory shift follows Ontario’s successful model, where private gambling websites coexist with government-run platforms. Alberta’s initiative aims to move beyond the current monopoly held by the Alberta Gaming, Liquor and Cannabis (AGLC) through its Play Alberta website. With the introduction of Bill 16 in April 2024 by Minister Dale Nally, the provincial government’s authority to manage and conduct gaming in Alberta has been clarified, paving the way for a regulated and competitive
online gambling market.

The current online gambling market in Alberta is predominantly controlled by Play Alberta, which is estimated to hold 45% of the market share. Despite this, unregulated online gaming sites still account for approximately 55% of Alberta’s iGaming market. Bill 16, also known as the Red Tape Reduction Statutes Amendment Act, aims to reduce this unregulated market by officially permitting and regulating private online gambling operators. This move is expected to align Alberta’s online gambling practices with those of Ontario, the only Canadian province that currently allows privately owned gambling websites. In Ontario, more than 50 regulated private operators manage 80 gambling
websites.

Revenue and Economic Considerations

The fiscal impact of online gambling in Alberta has been significant. In the first quarter of the 2024-25 fiscal year, online gambling revenues reached $726 million, up from $540 million in the prior year. Since its launch in October 2020, Play Alberta has taken around $5.36 billion in total bets over 12 months ending March 31, contributing $234 million to Alberta’s general revenue fund. This financial input highlights the potential benefits of expanding the market to include multiple operators.

Ontario’s experience showcases the economic benefits of a regulated and competitive online gambling market. Ontario’s iGaming sector has contributed CA$2.7 billion to the province’s GDP and created almost 15,000 full-time equivalent jobs in the second year after its inception. A report by Deloitte revealed that Ontario’s market had hit or nearly reached many of its year-five projections within two years, offering a promising benchmark for Alberta as it makes regulatory changes.

One challenge Alberta may face is integrating self-exclusion infrastructure across online gambling sites. Experts like Dr. Nigel Turner emphasize the importance of responsible gambling practices. Unlike Alberta, Ontario currently lacks provincewide self-exclusion tools and mandatory limit-setting, which Alberta is considering implementing. Minister Dale Nally has indicated that Alberta aims to create a safer and more responsible gambling environment by introducing these tools, aligning with the goal of reducing the unregulated market and ensuring player safety.

Private Operators Entering Alberta’s Online Gambling Market

The entry of private operators, such as FanDuel online casino, is expected to reshape Alberta’s online gambling market. Increased competition from private operators will likely lead to more gaming options and better technologies, improving the user experience. Ontario’s model demonstrates the benefits of a competitive market, including the reduced influence of unregulated offshore sites.

The inclusion of operators like FanDuel presents substantial growth opportunities for Alberta’s online gambling sector. FanDuel’s presence will expand the selection of games and enhance user experiences, contributing to increased provincial revenues through regulated activities. This aligns with Alberta’s objective of fostering a secure and responsible gambling environment while capitalizing on the economic advantages of a well-regulated market.

Economic and Job Growth Projections

Canada’s online casino industry is on track to surpass $2 billion in gross gaming revenue in 2024, nearly tripling from the $750 million recorded in 2020. This growth has spurred job creation, with over 25,000 direct jobs expected in 2024. As more Canadians engage with online gambling, economic contributions from this sector continue to expand, impacting industries such as software development, customer support, marketing, and finance.

Approximately 20 million Canadians, or about 50% of the population, engaged with online casinos at least once in 2024, a significant increase from 10 million in 2020. This growing user base highlights the widespread adoption of online gambling. In Alberta, per-capita gambling spending is notably high, with many participants using unregulated sites. The province aims to draw these funds into the regulated market, ensuring that online gambling activities occur within safe and legal frameworks.

Regulatory Framework and Consultation Process

The Alberta government has initiated consultations to develop a comprehensive strategy for the future online gambling market. These discussions involve key stakeholders, including casinos, racing entertainment centers, and First Nations, ensuring that diverse perspectives are considered. A primary goal of these consultations is to create a framework that promotes safety, responsibility, and economic benefits for the province.

Minister Dale Nally has emphasized that opening the market will only proceed once a robust regulatory framework is in place. This cautious approach aims to eliminate the influence of  unregulated offshore gambling websites, ensuring that all activities are subject to provincial oversight. An independent administrator, similar to iGaming Ontario, is planned to oversee the commercial market in Alberta.

The revenue split between Alberta’s government and private operators remains under discussion. In Ontario, the provincial government takes 20% of revenues from regulated gambling websites, contributing $790 million in taxes last year. This model may offer insights into potential revenue-sharing arrangements in Alberta, balancing the need to attract private operators with the goal of maximizing public revenues.

Challenges and Opportunities in Alberta’s Online Gambling Market

Alberta’s move toward a regulated online gambling market faces the challenge of attracting private operators who may hesitate to share player information with AGLC, the operator of Play Alberta. Private operators have expressed reluctance to disclose data to a direct competitor. Addressing these concerns will be essential for building a competitive and dynamic market.

Alberta’s high per-capita gambling spending underscores the potential for regulated online gambling to channel more funds within the province. By capturing this existing gambling activity through regulated channels, Alberta can enhance player safety while generating significant economic benefits.

Conclusion

Alberta’s transition toward a regulated online gambling market is poised to generate significant economic growth and job creation, while enhancing player safety and responsible gambling practices. By following Ontario’s successful model, Alberta has the potential to build a competitive, secure, and regulated iGaming environment. As the province finalizes its regulatory framework and addresses challenges like data-sharing concerns, it can unlock the benefits of a growing iGaming market while protecting both players and the public interest. Alberta’s careful approach ensures that this shift benefits the province’s economy while safeguarding players from unregulated sites.