Canada’s Rapidly Changing Sports Betting Landscape
Since sports betting was legalised in Canada, the rules surrounding sports betting are changing almost daily, with each province empowered to set their own rules. Recent research shows that most Canadians are unaware of Canada’s new sports betting laws. Join us as we clarify the current situation.
The betting landscape in Canada is a rapidly moving one, and in just over a month, iGaming will be permitted in the country. Finally allowing Canadians to legally play online slots with a fully licenced and regulated operator, rather than using offshore companies that don’t offer the same level of consumer protection.
Well-known audit, consultancy and financial advisory company Deloitte Canada recently released a study entitled “Bettor Perspectives”. Their report highlights how operators and other stakeholders can profit from the new regulated Canadian sports betting market. Deloitte Canada believes the newly legalised single-sports betting market could be worth $28 billion in the next five years.
In September last year, Deloitte Canada polled over 1,000 Canadian consumers who are above the legal age for gambling to seek their views on gambling and to test their knowledge of current legislation. Participants in the survey included likely gamblers and non-gamblers and the sample set covered a wide range of financial situations and regions.
The Deloitte Canada study concluded that operators should avoid treating all consumers the same way, highlighting that their researched showed three distinct catorgories of bettors, ardent bettors, casual bettors and those who don’t currently bet, but show indications that they could be pursaded to gamble.
When interrupting the data, Deloitte Canada found that almost a tenth (8.5%) could be described as ardent bettors. This group are highly engaged gamblers who bet often and are likely to stake larger amounts. They often wager $50 or more on a single bet and their average spend exceeds $1,000 or more over a calendar year. This group contains slightly more men than women (65.3%) and on average are below the age of 44 (68.9%). Those who belong in the arsent bettor catorgory usually have the highest incomes.
A third of those who participated in the study (33%) are classed as casual bettors. They spend less than $50 on a bet and their net spend over 12 months is less than $1,000. 58% are male and tend to be older than the ardent bettors, with 58% of them aged 44 or younger.
The final catorgory, the potential bettor makes up the largest contingent (58.5%) and shows the Canadian market has lots of potential for operators if they are able to entice them to bet. This category mainly comprises of females (57%) and are aged between 25-64 and tend to have incomes that are slightly lower than the ardent and casual bettors.
Findings of the Deloitte Canada Report
The Deloitte Canada report found:
- Almost 38% of those that took part in the study had either placed a bet on sports or are considering doing so in the near future.
- Only 20% of the those who took part in the study were aware that single-sports betting was now legal in the country. Over a third (37%) had genuine interest in placing bets, but stated they were unlikely to do so as they were uncertain on how to do so.
- 67% of those surveyed expressed an interest in placing single-game bets and almost a third (32.8%) said they would like to place bets in-play (while the sporting event is taking place). A quarter (24.9%) said they would be interested in placing parlay bets (a bet covering several events).
- Just under half (41.7%) said they would like to seek rapid win payouts.
- Almost half (49%) would prefer to bet online compared to 45.4% who intend to bet at a retail location, casino or sportsbook.
- 43.6% said they would like to see dedicated betting lounges at sporting venues, a figure that rises to 75% for ardent bettors.
- 84% of ardent bettors said they were likely to play online casino games if their province permits iGaming.
Deloitte’s Recommendations for the Canadian Market
In Deloitte’s conclusion, they recommend that operators provide unique experiences to take advantage of a desire to bet. Bettors that fall into this category want several elements; a wide selection of bets, quick payouts, a place to bet at venues and VIP experiences. Also highlighting that ardent bettors are happy to shop around for the best odds and will take their time in researching bets.
For the casual bettors, the authors of the report state that the experience is more important to those that identify as sports fans first and bettors second. They suggest operators team up with sports teams and concentrate on the fun side of betting. They recommend the sports betting sites offer novelty bets and free-to-play games to engage this group.
For the potential bettors, Deloitte recommend that operators invest heavily in education programs to convert potential bettors into regular bettors. To achieve this potential punters will need to understand what a single-sports bet is and how to place one.
The authors also recommend free-to-play contests and low-risk games to help convert potential bettors.
