Canadians appear to have lost interest in gambling at home because of the economic recession and the rise in the number of hotel casino resorts in the US. An industry report by IBISWorld, a company that conducts research on various industries, deals with this issue.
During the last five years, the Canadian gambling industry has been struggling against a variety of factors that have led to reduced demand for gambling in the country. Economic recovery post recession has been rather slow, owing to which several consumers are unable to spend money in casinos. Andy Brennan, analyst at IBISWorld, says that this is not exclusive to Canada as several Western countries have been witnessing a decline in their gambling industries. People are just not earning as much as they used to pre-recession. As they are burdened with rising costs of essential services and products, they are unable to spend much on gambling.
On the other hand, the industry is teetering under the burden of tough competition from new hotel resort casinos that are cropping up in the US. Canadian casinos are also suffering because of the stronger Canadian dollar, which is preventing US gamblers from taking gambling vacations in Canada. The gambling industry of Canada is expected to exhibit steady decline in revenue over the next five years.
Brennan says that “the industry will face an uphill battle over the next five years.” Although people will soon start earning more, most of them will be busy saving up or paying off loans instead of spending money on casinos.
Each Canadian province has its own gambling regulations. Although national lottery games are available in all provinces, the availability and legality of other games of chance depend entirely on the gambling laws of individual provinces. Depending on these regulations, Canadian casinos may be charitable, commercial, government operated, or operated by private companies.
