PayPal’s presence in global online gambling markets highlights its notable absence in Canada.
Explaining the reasons behind PayPal’s limited availability in the country, Ville Saari, the Lead Content Manager at Bojoko.ca, told PaymentExpert that the lack of a unified national regulatory system hinders the payment service’s operations in Canada.
Saari stated: “PayPal’s policy is to support online gambling transactions only in regions where the industry is fully regulated. In Canada, the regulatory framework for online gambling varies significantly across provinces.
“While some provinces have established their own regulations, there isn’t a cohesive, nationwide regulatory system in place. This fragmented approach doesn’t meet PayPal’s criteria for supporting gambling transactions, leading to its limited availability in Canadian online casinos.”
Pointing out the main obstacles, he noted that in Canada, gambling regulation is primarily managed at the provincial level.
Provinces such as British Columbia, Manitoba, Quebec, and Alberta have their own regulatory bodies overseeing gambling activities; however, their jurisdiction does not extend to online casinos. The only province where this is addressed is Ontario.
Saari added: “PayPal requires a robust and uniform regulatory environment to ensure compliance and security. The current provincial regulations, being inconsistent and not uniformly stringent, do not align with PayPal’s operational standards for supporting gambling transactions.
“Currently, Canadian players who prefer using PayPal for online gambling transactions have practically no recourse; they just can’t use the payment method. There may be exceptions or workarounds, but this is not advised. The best thing they can do is look for alternatives.
“We have a guide explaining the hurdles of using PayPal at casinos in Canada, walking our users through the situation. In it, we also list several alternatives with similar functionalities and protections that people who prefer to use PayPal could opt for instead.”
For PayPal to become a more key player in the Canadian market, Saari stated that the regulatory framework would need to go through ‘significant changes’.
“This could, for instance, be achieved through a cohesive nationwide regulatory system similar to the UKGC. Such developments would provide the uniformity and security that PayPal requires to operate in the online gambling sector.
“The absence of PayPal is mainly an annoyance for all parties involved. If you look at the UK casino sector, PayPal is one of the most used payment methods, but players need to look elsewhere in Canada. PayPal is an easy and reputable payment method for casinos to implement, instantly generating trust, and that’s a loss.
“However, the biggest hurdle is the players needing to test and choose alternatives. It can deter getting started, though once you’re set up and happy with an alternative, it’s business as usual.”
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