According to a number of experts teenagers in Quebec are losing thousands of dollars as the monopoly market model in Quebec is shown to be flawed. Online gambling affects kids more than many are aware in Quebec and the problem will continue to grow unless the industry experts make changes.
Teens are being influenced by ads on social media and more often than not, are gambling on sites that aren't legal. How dangerous is this? Is there a solution?
Social Media Ads Are Driving the Underage Gambling Surge
Experts have spoken about a number of teens who have been influenced to gamble because of social media ads. They mentioned a story from Le Devoir, a Canadian news outlet, where a 17 year old started gambling for fun with his friends and won so he opened a real money account on an illegal gambling site and used a relative's ID as proof of age. He said, it didn't feel like playing with real money until he realized how much he'd actually lost after a few days.
This story is not unusual and Xavier Lalonder a former addiction counsellor who now teaches about prevention stated that there are teens who have lost thousands in a matter of weeks because of the tricks that are used by scam gambling sites to keep players hooked. This often includes delayed withdrawals in the hopes that players will continue to bet with their winnings.
He went on to say that in some schools where he's been teaching he has come across kids as young as 12 playing real money games.
Social media has a huge impact on young adults and having influencers and stars promoting gambling plays a big part in the growing youth gambling figures. These influencers often hide gambling in games that look harmless and fun.
This marketing strategy along with how easy it is to access online casinos on mobile means kids can start gambling well before they reach the legal age. This has led to rising concern in experts that gambling at a young age could very well boost the chances of someone getting addicted and facing gambling harm later in life.
Quebec's Gambling Monopoly Feeding The Unregulated Market
With increases in youth betting in Quebec being discussed by experts it has also led to criticism about Quebec's monopoly market and how unregulated sites are draining billions in revenue from the province.
Quebec has one legal online gambling site that is government-run by Loto-Quebec. Espacejeux is the only legal Quebec online casino and betting site for residents within the province meaning the government has a monopoly on all gambling. Of course, this hasn't stopped underage kids from gambling at offshore and unregulated sites. Unregulated sites continue to surge.
According to figures released at the Canadian Gaming Summit, Quebec losses around CAD 1.97 billion in gross revenue every year due to unregulated sites. This is the highest figure across Canada.
Speaking on behalf of the Quebec Online Gaming Coalition, Ariane Gauthier said, "This situation shows Quebec needs a regulated competitive system like Ontario's. In Ontario, all licensed operators follow strict responsible gambling rules which include age verification and public awareness campaigns."
Experts want change, the Quebec Online Gaming Coalition wants change, and the many are saying that without a new plan, that the financial losses and health concerns associated with problem gambling will continue to grow.
Could a provincially run iGaming market like the one in Ontario work in Quebec? Ontario opened their regulated market in 2022 and it is proving to be quite successful. Responsible gambling is at the core of it along with geolocation and ID verification on sign up.
GeoLocs and Shufti Partnership - ID Verification & Geolocation For iGaming
Specialist in geolocation, GeoLocs, which works with lottery corporations and Ontario operators has partnered with Shufti an identity verification provider in a bid to create what they are describing as a seamless and secure experience for both operators and players in regulated iGaming markets around the world.
In the proposed partnership, Shufti will integrate its ID verification technology with GeoLoc's geolocation to ensure that operators have the ability to onboard players much faster whilst remaining compliant with all regulations. For players it will mean reduced registration and verification times and a smoother transition from signing up to playing.
The aim of this partnership will mean that as iGaming regulation continues to evolve in Ontario and as other jurisdictions open up such as the one in Alberta, operators will have the tools necessary to deliver the security, compliance, and user experience, that is high quality and will satisfy regulators and players alike.
Shufti KYC and AML For Security & Satisfaction
Shufti has a presence in more than 230 countries and offers AI-driven know your customer (KYC) and anti-money laundering (AML) solutions. This helps businesses to verify their users in real time and comply with all regulations.
Roger Redfearn-Tyrzyk, SVP of sales at Shufti said, "We're proud to be teaming up with GeoLocs to support operators in delivering frictionless onboarding and high levels of regulatory compliance. Our joint capabilities will mean operators can verify users quickly and accurately while GeoLocs will ensure they're playing from permitted locations. This is going to create an end-to-end experience that will put both security and user satisfaction first."
According to Will Whitehead, GeoLocs Commerical Director, the technology from both companies has been built with compliance and the UX at their core and the partnership is going to allow them to combine their strengths and make onboarding and verification faster and smoother in regulated markets.
GeoLocs Already Has A Significant Presence in Canada
GeoLocs is a geolocation technology that was developed by mkodo and it has more than 13 years of experience. It was purpose built for iGaming, sports betting, and lottery industries. It helps operators verify player locations with precision and they operator in regulated markets around the world.
GeoLocs supports compliance with complex regulatory frameworks and it's platform is approved by Gaming Laboratories International (GLI) and the Alcohol and Gaming Commission of Ontario (AGCO) as well as other regulators. It carries out over 18 million location checks every day including those in Canada, the US, and Brazil.
it has been working with the provincial lottery corporations in Canada since 2011 and was the first geolocation service to go live in Ontario when it supported the Ontario Lottery and Gaming (OLG) and was a launch partner when the iGaming market opened in April 2022. It works with AGCO licensed online casinos such as Betty Canada and Maverick Games.
GeoLocs powers the geolocation for the Western Canada Lottery Corporation (WCLC) in Alberta and is helping to develop the Alberta Gaming, Liquor and Cannabis (AGLC) Play Alberta app. It is in a great position for when the province launches its regulated iGaming market in 2026.
Whitehead has said that from a readiness standpoint, they are already there. They know what the regulatory requirements will be, they know what the expectations will be, and they are ready to help new operators coming into the Alberta market to launch with full compliance quickly. GeoLocs is ISO 27001 certificed and GLI-approved. Their solutions have been approved by regulators across Canada.
Will Quebec Solve Its Youth Gambling Problem with GeoLoc and Shufti?
GeoLoc is trusted by regulators and the new partnership with Shufti sounds great, but could it solve the youth gambling problem in Quebec? Quebec hasn't opened its market and Espacejeux remains the only legal online casino in the province. If Loto-Quebec decide to regulate the market and follow in Ontario and Alberta's footsteps, it will give them more control and help decrease the amount of money they are losing to unlicensed operators.
Opening the Quebec iGaming market will also allow more control, proper geolocation and ID verification and mean that it will be more difficult for underage gamblers to play for real money.
We don't know what will happen yet, but it does sound like a good way to go. End the monopoly, promote safer gambling, and educate teens on the dangers of gambling.
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