Countries vary considerably in their gambling laws. Take the US and Canada. It even varies from one area to the next.
The laws in Canada are generally more relaxed than those in the US. Of note, recent changes on betting on sports and online casinos have changed the picture somewhat.
It’s all about taxes
Looking a major differences, players in Canada can take home more of their winnings. They are not taxed in brick and mortar or online casinos. Players make more profit.
This is not so in the US where certain amounts are considered as taxable income. As a rule of thumb, taxes between 24% and 30% of the winning amount goes to the IRS.
Some US land-based casinos simply withhold the tax percentage and provide the appropriate tax form. Online casinos are fairly new to most states, so the rules may vary; but as a rule, any income earned should be reported.
While players do pay any tax in Canada on gambling wins in Canada, casinos and bookmakers do pay tax and generate revenue for the country.
In this regard, between May and September last year, the gambling industry’s GDP rose from $2.51 billion to $2.65 billion.
New Jersey, honoring the new gambling laws on sportsbooks and online casinos took in almost $85 million for the month of August 2020. It is an increase of 120.9% compared to the same month in 2019.
Online sportsbooks in The Garden State reached revenues of $34.3 million, from total bets of $602 million.
What about online casinos
In Canada, online casinos cannot legally be operated by Canadian citizens. It is the same as New Zealand, where local residents are banned from operating them. However, there are no laws preventing offshore casinos in Canada or Canadians from using their services.
In fact, Canadian law only allows gambling at licensed premises or on licensed websites. There are no licenses for online casinos. Given their popularity, there are close to ninety licensed brick and mortar casinos for citizens and tourists to choose from. Plus, online services operate from areas like Malta and the UK.
As for US citizens, they too can access offshore online casinos, but they must adhere to specific state rules regarding gambling in line with the 2006 Unlawful Internet Gambling Act.
While regulations are relaxing in most regions, visitors to the US should check the local legislation before accessing any online casino or other form of online gambling.
It is also about software
Another point of comparison is that Canadians typically have access to a better selection of online casino games than Americans. This is due to the number and quality of software providers for offshore websites.
Sites offer a variety of games and features to attract players to come online. Most of the top iGaming software brands do not yet have licenses in the US to operate or sell their games and software to US casinos.
However, some of the more progressive states have been embracing new gambling regulations such as New Jersey, Nevada, and Colorado. International game developers are becoming more welcome.
Legalized gambling can be highly beneficial to the economy of a country or state. It can bringing in millions in taxable revenue – every single month. Canada has a booming gambling industry and the relaxation of the laws in the US is sure to help the industry here.