Over the course of the past month, there has been quite a bit of speculation surrounding Loto Quebec’s desire to venture into online gambling, but the rumours have finally been confirmed. This week, Loto Quebec has submitted a request to the federal government which, if approved, would allow them to enter into an online gambling partnership with B.C. Lottery Corporation.
Currently, both corporations are dabbling in online gambling on their own. However, they are focused on forms with lower stakes, like lotteries, bingo and sportsbetting. The new partnership would seek to pursue higher stakes with actual casino games and poker, a decision which would prove to be extremely profitable as the estimated income for online gambling is predicted to be $1 billion in 2012.
Despite the positive industry outlook, however, the Canadian government is hesitant about the idea. Not only are politicians worried about promoting gambling; they are also concerned about the cost of operating an online gambling establishment. Because the online casino industry is so saturated with operators, the government fears that operational costs will increase at a faster rate than revenue.
“We are in the field of entertainment where customers want extraordinary experiences”, says Loto Quebec CEO. “Our biggest challenge will be to maintain profit margins without sacrificing service quality”.
Despite these concerns, both parties are optimistic about the proposal. Loto Quebec and the B.C. Lottery Corp already have large customer bases, a crucial necessity for any new online gambling company. If the partnership is successful, this will be the first government-regulated online casino venture in Canada, offering both provinces a much needed additional revenue stream.
