Social Casinos In Canada 2023
Social casinos are online platforms that offer casino-style games such as slots, poker, blackjack, roulette, and bingo, but without real money wagering. Instead, players use virtual currency or credits that can be purchased or earned through gameplay, social interactions, or watching ads. Social casinos are popular among people who enjoy the thrill and excitement of gambling, but do not want to risk losing money or face legal issues.
Social casinos are not regulated by the same laws and authorities as real-money online casinos in Canada. This means that they do not require a license from the provincial governments or the Canadian Gaming Association (CGA), and they do not have to follow the same standards of fairness, security, and responsible gambling. However, social casinos still have to comply with the general laws of Canada, such as the Criminal Code, the Competition Act, and the Privacy Act.
According to a report by Eilers & Krejcik Gaming, social casinos generated $5.2 billion USD in global revenue in 2020, with North America accounting for 54% of the market share. Canada is one of the top countries for social casino players, with an estimated 7.6 million monthly active users (MAU) and $183 million USD in annual revenue in 2020. The social casino market in Canada is expected to grow at a compound annual growth rate (CAGR) of 9.6% from 2020 to 2023, reaching $290 million USD in revenue by 2023.
What are the main drivers of social casino growth in Canada? There are several factors that contribute to the increasing popularity and demand for social casinos in Canada. Some of them are: The COVID-19 pandemic: The outbreak of the coronavirus pandemic in 2020 had a significant impact on the gambling industry worldwide. Many land-based casinos were forced to close or limit their operations due to lockdowns and social distancing measures.
This created a gap in the market for online gambling alternatives, especially for casual and recreational gamblers who were looking for entertainment and socialization during the pandemic. Social casinos offered a convenient and accessible way for these players to enjoy their favorite casino games without leaving their homes or risking their health. The legalization of single-game sports betting: In June 2021, the Canadian Senate passed Bill C-218, also known as the Safe and Regulated Sports Betting Act, which amended the Criminal Code to allow provinces and territories to regulate and license single-game sports betting.
This was a major milestone for the Canadian gambling industry, as it opened up new opportunities and markets for online sports betting operators and players. Social casinos can benefit from this development by offering social sports betting products that mimic real-money sports betting platforms, but with virtual currency and prizes. Social sports betting can also serve as a gateway for new players who want to learn about sports betting before transitioning to real-money platforms. The innovation and diversity of social casino products: Social casino operators are constantly developing new and improved products that cater to different types of players and preferences.
Social casino games are not limited by the physical constraints of land-based casinos, which means that they can offer more variety, creativity, and interactivity than traditional casino games.
