The number of countries who have legalized sports betting over the last decade is truly extraordinary. This was once considered taboo industry by many government officials, but is now becoming common practice in most countries across the globe.
The reason behind it is obvious. For years, governments have spent a significant amount of their resources battling against criminal enterprises offering illegal sports betting. It has been a losing battle, as many will find avenues where they can place wagers on their favorite sporting events regardless of whether it is legal or not.
In addition, these illegal enterprises were earning significant amounts of income. According to one report, that amount exceeded over $14 billion in Canada alone. That was money that was being used by these criminal enterprises to increase their activities and was money that was lost to provincial, federal, and local governments.
Seeing the Big Picture
After tilting at windmills, so to speak, the Canadian government passed legislation last year that legalized sports betting within the borders of the country. It was clearly recognized that sports betting was going to occur within the country’s borders, and it made sense for the Canadian government to legalize the practice.
This was not just a matter of trying to remove a significant amount of cash from criminal enterprises. Instead, the legislation focused on how this revenue could be used to fund programs and infrastructure within the individual provinces as well as at the federal level.
As mentioned, literally billions of dollars were at stake. This was money that could have been acquired as revenue through taxes, as the legally run Pro Line has proven. This business draws over $500 million annually, and that is just one sportsbook. With more options available in several provinces, it was concluded by the PricewaterhouseCoopers (PwC) study that legalized sports would draw between $1.5 billion and $2.4 billion within the first two years. That is a significant amount of money that could simply not be ignored.
More Than Just Tax Revenue
The money received from legalized gambling is obviously a significant amount. However, it is also important to note that this industry generates additional benefits for the country as a whole. The same study concluded that 2500 jobs would be created as a result of legalized sports gambling. The study also found that the sports betting market would generate an additional $425 million toward the Canadian GDP. With tax revenue obtained from employment and this additional GDP, it would not be surprising to see an additional $1 billion in revenue generated for the government.
Doing It the Right Way
There were many who were skeptical of the sports betting bill, concerned about the long-term effects this could have on the country. However, provincial governments have been proactive in ensuring that they have chosen online casinos in Canada that can be trusted to provide a safe, secure, and fair place for users.
A significant number of the casinos and sportsbooks who have received licenses to operate in the country have a proven track record in this industry. They are ones who have gone through a rigorous vetting process in other nations, and have proven themselves to be a place that the government could trust to provide a fair system filled with safeguards to protect players.
The truth is that with the amount of money that this industry is going to generate, it was only a matter of time before sports gambling was allowed within the borders of Canada. This is too much of a significant revenue for the government to pass on, and now it will be used to help Canadians in a number of ways.