PayPal’s absence in Canadian igaming markets is noteworthy given its global presence.
Elaborating on why PayPal is not widespread in Canada, Ville Saari, Lead Content Manager at Bojoko.ca, highlighted that the lack of a unified national regulatory framework hampers the payment service’s expansion.
Saari explained: “PayPal supports online gambling transactions only in fully regulated regions. In Canada, the online gambling regulatory framework differs vastly between provinces.
“While certain provinces have their own regulations, a cohesive national regulatory system is absent. This fragmented environment fails to meet PayPal’s criteria for processing gambling transactions, resulting in its limited presence in Canadian online casinos.”
He pointed out specific challenges, noting that gambling laws in Canada are mostly managed at the provincial level.
Provinces like British Columbia, Manitoba, Quebec, and Alberta have regulatory authorities for gambling, but they do not encompass online casinos. Currently, Ontario is the only province with such regulations.
Saari added: “For PayPal, a robust and consistent regulatory framework is essential to ensure compliance and security. The disparate provincial regulations are inconsistent and lack the uniformity PayPal requires for supporting gambling transactions.
“Canadian players who prefer PayPal for online gambling have limited options; the payment method is unavailable. While exceptions might exist, they are not recommended. Players are better off exploring alternatives.
“We offer a guide on using PayPal at Canadian casinos, guiding users through the challenges. It also suggests alternatives with similar features and protections for those who prefer PayPal.”
For PayPal to gain a stronger foothold in Canada, Saari emphasized that the regulatory framework would require ‘significant changes.’
“This could be achieved with a unified national regulatory system akin to the UKGC. Such developments would offer the consistency and security PayPal needs to operate in the online gambling industry.
“The absence of PayPal is an inconvenience for all stakeholders. In the UK casino market, PayPal is one of the most widely used payment methods, while Canadian players need to seek alternatives. PayPal is a straightforward and trusted payment option for casinos, immediately building trust, and its absence is felt.
“Nevertheless, the main challenge is for players to try and decide on alternatives. This can hinder initial engagement, but once an alternative is chosen, it’s business as usual.”
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