There was a monumental change last year to legal sports betting in Canada — but most people in the country may not have a clue it happened.
The lack of awareness is one of the key findings from a new report by audit and consulting firm Deloitte Canada, which sponsored an online survey that was conducted this past fall and polled more than 1,000 adults.
Federal lawmakers approved legislation last summer allowing for provinces and territories to conduct and manage single-game wagering, ending a longstanding prohibition. But according to Deloitte’s survey, just 19.2% of people were aware singles are now legal in Canada.
The knowledge about single-game wagering is elevated among Canadians who bet more, Deloitte’s survey found. The poll also discovered almost 38% of respondents either made a sports bet over the previous year or were interested in making one in the future.
"Those who said they were unlikely to do so cited a lack of information and an uncertainty about how betting would work under the new rules," Deloitte's report said. "Broadly, there is a need for an education and awareness campaign now that legislation has passed."
Unique neighbours
The findings from Deloitte come as legal sports betting has exploded in the United States since 2018, but as Canada’s progress has been relatively restrained since the passage of the single-game wagering bill last year.
Whereas some U.S. states have embarked on licensing schemes that have allowed private-sector sportsbooks to duke it out for market share, Canadian provinces have thus far leaned on their government-owned lottery and gaming corporations to take bets.
Some of the differences in approach can be chalked up to the unique laws of Canada and the U.S. For instance, Canadian law requires commercial gambling to be conducted and managed by the provinces, meaning governments have to be more involved in the delivery of sports betting.
Canada remains an attractive market for online sportsbooks, though. Canadians are estimated to be making billions of dollars in bets with offshore and illegal operators, and Deloitte forecast in February 2021 that allowing singles could generate $28 billion in authorized wagering by the five-year mark post-legalization.
Some Canadian provinces have shown a willingness to expand legal sports betting beyond the lotteries. Most notable is Ontario’s planned market for competitive internet gambling, which is set to launch on April 4 and will allow private-sector operators of online sportsbooks and casinos to take bets in the province.
Churn and learn
Other findings by Deloitte could provide a preview of what's to come in Ontario. The firm's online survey found 50% of bettors are looking for a trusted brand when shopping for a bookmaker, 41.7% want fast payouts of winnings, and 34.8% are shopping around for the best odds.
But just because a book lands a new customer, it doesn't mean that bettor will stick around forever. Just 12.9% of survey respondents indicated their prior use of a brand would affect where they might wager in the future. What's more, only 9.4% of respondents said they would pick a sportsbook due to the endorsement of a current or former professional athlete.
Deloitte broke down the respondents of its survey into three groups of bettors: ardent, casual, and potential. Each group differs in the sort of thing they look for most in a bookmaker, such as casual bettors putting greater weight on the type of odds they get.
"These findings suggest we should be prepared to witness some churn as Ontario's sports-betting market becomes the first in Canada to embrace a competitive marketplace," Deloitte said. "They also serve as an early indication that Canadian lottery organizations in provinces and territories that follow Ontario's lead may, too, experience initial customer fluctuation and turnover.”
As a result, Deloitte said operators should invest in ways of better understanding customers and then giving those bettors the type of things they value to ensure loyalty and repeat business.
"The legalization of single-event sports betting is one of the most significant developments the Canadian sports, entertainment, and gaming sectors have seen in years," Deloitte said. "Maximizing this opportunity necessitates that industry players truly understand the unique expectations and behaviours of the different types of Canadian sports bettors — and then deliver the kinds of tailored experiences and betting options that can attract, capture, and excite each group."
