Despite its global and Canadian popularity, PayPal remains notably absent as a payment option in the Canadian online casino sector. To understand why, we spoke with industry insider and expert Ville Saari. He is Lead Content Manager at Bojoko.ca, leading their team of casino experts in guiding Canadian players through the igaming market, and has followed the situation closely.
Speaking to Payment Expert, Saari shares his insights into how Canada’s regulatory environment impacts PayPal’s operational decisions and explores the implications for Canadian players who prefer using PayPal for their online gambling transactions. He also discusses potential pathways that could lead to PayPal becoming a viable option in Canada.
PE: PayPal is a widely used payment platform globally and in Canada. Why is it not commonly available in Canadian online casinos?
VS: 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.
PE: Could you elaborate on how provincial regulations impact PayPal’s decision?
VS: Certainly, in Canada, gambling laws are primarily governed at the provincial level. Provinces like British Columbia, Manitoba, Quebec, and Alberta have their own regulatory bodies overseeing gambling activities, but they do not cover online casinos. The only province that currently does this is Ontario.
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.
PE: What does this mean for Canadian players who prefer using PayPal?
VS: 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.
The silver lining here is that PayPal is not the only e-wallet out there, and the competition is growing. This means that even if PayPal does not change its internal framework or Canada changes its, you can still have a similar customer journey. The only annoyance is needing to sign up with an additional e-wallet.
PE: What would need to change for PayPal to become a viable payment option in Canadian online casinos?
VS: The regulatory framework would need to significantly change for PayPal to consider supporting transactions in Canadian online casinos. 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.
PE: In your view, how does the absence of PayPal affect the Canadian online gambling market?
VS: 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 on 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.
