Canadian Provinces Appeal to Bettors to Avoid Black Market

Five Canadian provinces have banded together to appeal to consumers to use legal online gaming sites. Alberta, British Columbia, Manitoba, Quebec and Atlantic Canada warn that illegal offshore sites lack consumer protections. Also true is that the provinces don’t collect taxes from those sites.

Canadian Provinces Appeal to Bettors to Avoid Black Market

A coalition of Canadian provinces, including Alberta, British Columbia, Manitoba, Quebec and Atlantic Canada, have united to bring the message to consumers that they should avoid using illegal offshore gaming sites. Of course, altruism isn’t their only motivation—they also want to collect all the taxes they have been missing.

Steve Lautischer, executive vice-president of business operations with Alberta Gaming, Liquor and Cannabis (AGLC), told CBC News, “We make greater awareness of the issue of the onslaught of advertising when it comes to sports gaming that has come about in the last period of time.”

The agency coalition cites research conducted in June that the Canadian gaming market is worth approximately $3.8 billion, which is expected to nearly double by 2026. But the consumer risks not knowing when they are using illegal sites, rather than sites sanctioned by the government.

“It’s certainly a significant problem…. In Alberta, we estimate somewhere between $400 and $500 million annually is spent with unregulated iGaming offers,” said Lautischer.

Part of that is caused by the constant bombardment of consumers by ads for sports betting and iGaming during televised sports events and even when they are surfing the internet or glancing at their phones.

Lautischer added, “Just because something is presented to them, they should still be cautious and careful about where they’re sharing their personal information, their banking information, how they’re participating so that we can protect our citizens.”

Psychology Professor, David Hodgins, who heads the University of Calgary’s Addictive Behaviors Lab argues that provincial governments have a duty to protect consumers from predatory sites and to fight addictive behavior. “The safeguards that are available on provincial sites involve the ability of people to restrict their gambling. So, either by pre-committing how much they’re willing to spend or even banning themselves from some gambling for temporary periods of time,” he told CBC News.