Ontario opened its regulated online gambling market in April 2022. Since then, dozens of Canadian online casinos and sportsbooks have been issued iGaming Ontario licenses, and the industry has generated millions of dollars in tax revenue.
As other provinces look to replicate Ontario’s model, I thought we should discuss something many people neglect. Do stricter gambling laws actually encourage illegal gambling? After all, everyone knows the saying, “forbidden fruit is the sweetest.” In practice, though, it’s a bit more complicated. Let’s unpack this a bit.
Why Do People Risk Playing Illegally Despite the Consequences?
Arguably, the best way to combat illegal gambling is to understand why people do it. Most often, people gamble at unlicensed online casinos because they don’t have the option to play anywhere else. It’s this simple: anyone who wants to gamble badly enough will always find a way. When there are no legal options, gamblers inevitably turn to illegal gambling sites.
Regulated markets don’t always stop illegal gambling
Having a legal, regulated online gambling market helps address the lack of legitimate options. However, simply providing access to legal casinos doesn’t eliminate illegal gambling entirely. While limited access to licensed sites is a key reason people gamble illegally, it’s not the only one.
If illegal online casinos can offer something licensed sites don’t—like bigger bonuses or better games—many players will still choose them. This is especially true for experienced players, who are more likely to shop around for gambling sites offering maximum value for their money.
Another reason why illegal gambling sites can be more attractive than legal ones is the ease of access. Where barriers to entry exist for legal sites, like geographic restrictions or complicated verification processes, illegal casinos will attract players who prefer gambling sites that are easier to access.
This highlights why regulators must find the right balance to combat illegal gambling. If too many barriers are put up for players and rules are too strict, illegal sites inevitably become more appealing to players. For example, if legal casinos restrict certain game categories or impose higher taxes, illegal sites can offer more attractive alternatives.
Do Stricter Gambling Laws Make Illegal Sites More Appealing?
There’s a widely held belief that making things illegal inherently makes them more appealing. Is that necessarily true of gambling, though? In short, no.
According to data from a February 2024 Ipsos study, players are far more likely to gamble at legal betting sites than illegal ones. The report found that 86.4% of Ontario gamblers played on regulated sites in the previous three months.
We don’t have clear data on how many players use illegal sites, but it’s obvious that iGaming Ontario and the Alcohol and Gaming Commission of Ontario have dealt a massive blow to illegal gambling in the province, and Canada overall.
The data suggests that lawmakers are successfully regulating online gambling in Canada, especially when it comes to Ontario online casinos. However, as other provinces look to follow suit, they should keep in mind that over-regulation could push people to illegal gambling sites.
Lawmakers must carefully balance the needs for safety protocols such as KYC verification checks and responsible gambling with player interests, while ensuring legal online casinos can operate freely and effectively. This also requires minimizing the barriers to market entry for legal gambling sites without comprising on player safety and providing a seamless user experience.
Are illegal gambling sites in Canada worth it?
While illegal gambling sites may look like attractive alternatives, the truth is they are not worth it.
Playing at illegal casinos in Canada is extremely risky. They often lure players in with big bonuses, then offer rigged games and bonuses with unfair terms and conditions. What’s worse is that you have no recourse available if you are defrauded by one of these unregulated gambling sites.
Where to Gamble Online in Canada Safely and Responsibly
It’s now that we ought to remind you to only gamble at Canadian online casinos that are trustworthy. Every site we recommend is licensed by a reputable gambling authority and has been thoroughly vetted by our expert review team. On top of that, our partners offer excellent welcome bonuses and a wide range of games, from online slots to lotteries, bingo, and more.
