December 13, 2023
The Québec Online Gaming Coalition has had a busy end to 2023. Early in the month, the QOGC reported the results of a survey of 1,010 Quebec-based online gamblers on subjects relating to iGaming usage as collected by Mainstreet Research. The report confirms that the "grey market" of Quebec betting sites and online casinos, indeed remains very strong. Only 26.6% of surveyed players used the Loto-Québec online gaming platform for betting or casino gaming. 72% of surveyed players exclusively used Loto-Québec's online platform for the purpose of lottery ticket purchases. By deduction, the QOGC thus claimed that 73% of surveyed players chose to participate at "private" (offshore) online sports betting and casino operators.
QOGC spokesperson Nathalie Bergeron used these figures to call into question the viability of the Loto-Québec igaming "monopoly":
‘’These results show that Loto-Québec’s monopoly only exists on paper, and the Crown Corporation’s recent assessment of its market share does not reflect reality. The Québec government must consider the habits and preferences of Quebecers who play online games and establish a proper regulatory regime to protect the majority of Quebecers who play on privately operated platforms for online casino games and sports betting and not on the Crown Corporation’s platform.’’
The survey also claimed that there was strong support from respondents for a regulated and taxed igaming regime in Québec. 67% of respondents were in favour of such a regime. 56% of respondents support the creation of an independent regulator that could oversee both Loto-Québec and a potential regulated market of "private" operators, citing safety and responsible gaming concerns.
The lobby group claims that if Québec were to replicate the iGaming Ontario market for itself, the province would be able to raise $230 million in tax revenue annually (as based on Ontario's 20% revenue share scheme with its operating partners). Our estimates for potential Quebec igaming tax revenues are much more conservative.
One of the leading geo-location compliance technology service providers, Vancouver-based GeoComply, has joined the igaming lobby group in support of the replication of an Ontario-styled igaming market in Québec. iGaming companies that operate in regulated jurisdictions, like Ontario, must ensure that they only serve customers that are located within its borders. GeoComply offers a suite of services to help operators ensure that they only serve the customers that are indeed located in their jurisdiction, helping to prevent transactions from those that are located outside the regulated market.
GeoComply is the first partner within the QOGC that is not itself an iGaming operator or software provider. Unlike some of the partners within the Coalition, which have no business presence in the province of Québec, but which want a piece of a future regulated market, GeoComply already has an office located in Montreal.
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