Quebec's iGaming Market Faces Calls for Regulatory Reform Amid Allegedly Declining Revenues

Quebec's iGaming market, which has been controlled by the government through Loto-Québec for a long time, is facing some pressure. This is because the revenue has been decreasing while, at the same time, there is a need for the current regulatory framework to be transformed in order to allow private companies to participate in the market. The Quebec Online Gaming Coalition (QOGC) has become the most active organization in the discussion, suggesting changes that may revolutionize the way online gaming is operated within the province in a way that could help the economy.
A monopoly under pressure
Loto-Québec continues to maintain its monopoly on the provision of online gaming services in the province through its Espacejeux platform. Loto-Québec’s 2023–2024 fiscal year consolidated net income rose 4.7% to $1.511 billion. This is in direct contradiction to statements that the revenue has decreased and therefore suggests that the corporation is currently very financially sound. However, it has been argued that the current monopoly on online gaming in Quebec is not as effective as a competitive model such as that adopted by the Ontario online casinos, which have recently shown double-digit growth.
This debate is further informed by the economic situation in Quebec. The province is facing a projected deficit of $11 billion in its 2024–2025 fiscal year, which means that there will be considerable interest in how much of a role Loto-Québec is capable of playing in enhancing the performance of the gaming market.
Analysis of shifting gaming trends shows that more players prefer diverse and competitive products, which offshore providers—not bound by Quebec’s regulatory system—often offer. The offshores are estimated to be the source of a large portion of the activity in the province and thus, in effect, divert from public funds what could have been revenue. Loto-Québec still generates a lot of business, but the emergence of offshores and the limitations of the monopoly model highlight the need to rethink how Quebec manages online gaming.
The Quebec Online Gaming Coalition’s vision
The QOGC is leading the way in opening up private companies in the iGaming sector in Quebec. Its two objectives are:
- to develop a legal framework for participation by private operators that is clear and consistent;
- and to set guidelines that will protect players.
Thus, the coalition maintains that it is possible to attract back the offshore gamblers and, in doing so, unlock new sources of revenue.
The QOGC has been vocal in calling for the modernization of Quebec’s online gaming policies. The coalition stated in a press release:
The creation of an independent regulatory body in Quebec would allow for the standardization of responsible gaming controls, ensuring the protection of vulnerable and underage players. Ontario's regulatory model, implemented in early 2022, serves as a successful example of such an approach.
The coalition has met with policymakers, business people and other gaming interests to gain support for change. They have also launched a campaign to inform and engage Quebecers about the advantages of changing the law.
Political winds of change
Quebecers are also coming around to the idea of reform. A recent Leger Marketing poll found that 66% of Quebecers support opening up the market to private operators as long as the regulations focus on responsible gaming and consumer protection. Also, 67% of Quebec players favour the regulation of private online gaming operators through licensing and tax, according to a survey by Mainstreet Research.
Political parties are taking notice. The Coalition Avenir Québec (CAQ) government has not yet announced any major changes, but the opposition parties, including the Parti Québécois (PQ) and Québec solidaire, have expressed a willingness to consider it. The PQ, in particular, has enumerated the economic advantages of competitive model adoption and has presented it as a way to support the provincial finances in a pragmatic manner.
Socio-economic benefits of market modernization
The deregulation of the iGaming market in Quebec could result in numerous effects. It is predicted that a competitive market would bring in an additional $230 million in annual royalties to the state, which could then be used in healthcare, education and social services.
In addition, the modern market would also lead to the creation of new employment opportunities in the technology, customer service and compliance sectors. Therefore, Quebec could become one of the leaders in the expanding North American iGaming market, which would attract investments and people.
The current system has its disadvantages, and some people have stated that a competitive market would be more efficient in the fight against problem gambling. The offshore operators that currently command a significant market share are not bound by Quebec's responsible gaming provisions. By regulating private operators within the province, authorities could enforce stricter controls and ensure that players have access to resources for gambling addiction.
Our verdict
This is because the debate over Quebec’s iGaming market reaches a critical juncture, public support grows, and the province faces mounting economic pressures, so the case for regulatory reform becomes increasingly compelling. The decisions made in the coming months will either increase or decrease the volume of illegal gaming in Quebec, and whether or not Quebec decides to keep things as they are or change them will shape the future of online gaming in the province and its economy, players, and public services. The opportunities are there, but so are the stakes for Quebec.
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