Canadian gamblers are spending tons of money on offshore gambling websites.
Billions of dollars are wagered on betting products offered by online gambling portals. It’s a proof that Canadians would rather bet online instead of play in local lottery retailers. One of the reasons for this low interest in sports betting products by provincial lottery agencies is due to a low payout. Let’s take a closer look why Canadians prefer wagering through offshore online gambling sites.
How Parlay Betting Works
Wagering on a single game is not permitted in Canada. It’s stated that gamblers need to wager and predict outcomes of a minimum of 2 games. This method is called parlay betting. The parlay system entices bettors by offering more lucrative payouts. However, this also entails a level of difficulty.
Parlay wagers are tough to beat due to more games are added. Furthermore, bettors who decide to cash out their parlays in provincial lotteries receive a lower payout compared to the similar parlay bet on offshore sportsbook.
Here’s a simple example how parlay betting works, a $100 bet on a 3-game parlay placed through the Point Spread game offering by the Ontario Provincial Lottery Corporation pays$500. Canadian gamblers think it’s a cheap payout because they can receive a payout of $600 from an online bookie like Bet365.
Offshore Gambling Bookies are More Profitable
Seasoned bettors and newbies are easily reached by offshore gambling sites because of the Internet. There are no regulations in place that Canadian gamblers aren’t allowed to bet online instead of provincial lottery retailers. It’s a breeze for a bettor to go online and wager on sports betting products and casino games as well. It’s more lucrative to play online and the return on investment is higher.
The Canadian Gaming Association has announced that Canada-based gamblers are spending around $4 billion annually on online sports betting products. These are betting products are from offshore gambling companies.
Steve is hardly alone in his thinking. The Canadian Gaming Association estimates Canadian gamblers are sending roughly $4 billion every year to a growing number of online sports books based offshore. Whereas it’s only about $500 million is wagered on provincial sports lotteries.
“We cannot offer in Canada the product these people are seeking offshore.” CGA executive Paul Burns said.
Canadians Prefer to Gamble More Online
Canadian bettors would prefer wagering through offshore online gambling sites. It’s a no-brainer since bettors can easily check their accounts online, select betting options, and check payouts.
“People have gravitated to these offshore sites. They like to bet on their favourite team, so they go where they can do that,” says Burns, the Canadian Gaming Association executive. “They use their credit cards; they don’t have to leave their homes. They have chosen to spend their money there.”
Bettors also think betting offline is convenient in terms of security. Bettors can go to a convenience store and bet a single game if it’s allowed, compared to betting a single game online that requires credit card information.