IBIA Ranks Canada Low Among Regulated Markets
A recent report published by the International Betting Integrity Association (IBIA) in collaboration with H2 Gambling Capital which analyzes regulated iGaming markets worldwide has ranked Canada 19th of the 20 countries which were evaluated. New Jersey and Nevada, however, are among the strongest regulated online betting markets on the globe, according to the findings.
A recent report published by the International Betting Integrity Association (IBIA) which assesses regulated iGaming markets worldwide has ranked Canada 19th of the 20 countries which were evaluated. ©jameswheeler/Pixabay
Canada One of Five Countries Granted Provisional Score
In a recently published interactive report which charts regulated online gambling markets worldwide, the International Betting Integrity Association (IBIA) ranked Canada’s gambling market in 19th place out of the 20 total countries surveyed. The U.S. states of Nevada and New Jersey, meanwhile, were ranked among the best regulated online gambling markets worldwide.
Created in conjunction with market data intelligence firm H2 Gambling Capital, the “first of its kind” report analyzed and ranked 20 different regulatory online gambling markets on five different criteria: regulation, tax, product availability, integrity and marketing. It also offered a general overview of the global betting market and revealed the annual costs caused by match-fixing.
While Canada ended up being ranked as having the second-lowest regulated iGaming market, it was simultaneously one of five analyzed markets which was granted a provisional score by the International Betting Integrity Association (IBIA). This was done due to the fact that the country’s regulatory system may soon be undergoing some major changes.
These changes will take the form of a bill currently being considered by the country’s Senate, in which single-event sports wagering will finally become legalized, thereby repealing a law that currently allows sports betting to be made on three or more events at once. The bill recently passed its second reading, with it now being assigned to a standing committee for further evaluation.
Sports Betting Monopolies and Single-Event Betting Ban Lead to Low Score for Canada
One of the five criteria for analysis used by the International Betting Integrity Association (IBIA) in analyzing regulated online gambling markets is regulation. In light of this, it noted that Canada is one of the few jurisdictions it assessed which still holds a sports betting monopoly — albeit at a provincial level.
However, this is yet another aspect of Canada’s betting market which might soon be subject to change, with the province of Ontario now beginning to plan a licensing process.
Despite a slowly shifting reality in Canada’s gambling scene, the IBIA’s ratings are still based on current rules, meaning that the combination of sports betting monopolies still being present in the country, along with the persistent ban on single-event betting, means that the country scored only 47 points out of a potential 100 in the recent report.
This very same combination has led to extremely low channelization in Canada’s gambling market, according to the report, coming in at a rate of just 31% — another reason behind the country’s low score and ranking.
The IBIA also noted that Canada currently holds no match-fixing laws and has not signed any international convention against sports manipulation, meaning that it was not solely the sports betting monopoly and single-event betting ban which had an effect on its positioning.
Nevada and New Jersey Ranked in Top Six Markets
While Canada may have been ranked second to last in the International Betting Integrity Association’s (IBIA) report on worldwide regulated online gambling markets, two U.S. states, Nevada and New Jersey, ended up ranking in the association’s top six — with Nevada holding the position of the highest-ranked North American market.
Nevada’s regulation score was very high despite the fact that the state links online betting to land-based licensees. This is in large part due to the state’s long-standing regulatory framework in comparison to other U.S. states, as well as exemptions stemming from the Professional and Amateur Sports Protection Act of 1992 (PASPA) and, finally, an impressive 89% channelization rate.
Furthermore, the IBIA noted that Nevada holds a “particularly attractive 6.75% GGR and overall tax regime” — and even then, despite the United States’ 0.25% handle tax and taxes on betting winnings. This propelled Nevada into the position of holding the joint-highest tax score among all 20 surveyed countries.
Falling right behind Nevada in the U.S. market rankings is New Jersey, whose regulatory system was praised by the IBIA despite not being as storied as Nevada’s. The report described New Jersey as having:
“relatively recently introduced arrangements that limit the number of online betting licences and require online companies to establish agreements with incumbent licensed land-based operators.”
New Jersey also only has three online skins available per operator and, additionally, holds a lower channelization rate than Nevada, currently resting at 82%.
Casinos in Nevada Recently Increased Capacity to 50%
In mid-March 2021, Nevada Governor Steve Sisolak signed a new ruling which raised the number of allowed visitors to Nevada casinos from 35% capacity to 50%, as part of efforts to revitalize the state of Nevada’s economy following the widespread lockdowns caused by the coronavirus (Covid-19).
Social distancing rules were also relaxed as part of Governor Sisolak’s ruling, allowing performers to stand just six feet away from their audience if masked and 12 feet away if unmasked.
Furthermore, the maximum capacity rules did not apply solely to casinos, but also to gyms, pool halls, mini-golf greens, and bowling alleys as well. Perhaps unsurprisingly, visitors swarmed Las Vegas over a weekend in mid-March following Governor Sisolak’s sudden announcement.
Betting and Gaming Council (BGC) Joins Forces with IBIA
The Betting and Gaming Council, which represents more than 90% of the UK’s bookmakers, announced in May 2021 that it had joined forces with the International Betting Integrity Association (IBIA) to promote sporting integrity in the country.
Raising standards and better coordinating joint efforts in monitoring sports integrity were two of the main impulses driving this partnership, with the BGC and the IBIA signing a Memorandum of Understanding — allowing both parties to work more closely together in monitoring existing and emerging markets.
