T THE FOUR S

For years now, Canada has been a centre of igaming business activity, and the local industry has developed and attracted a large base of experienced gaming professionals, innovative start-ups, established entities, and active investors.

Here, we set out four great advantages that Canada has to offer Canada has to offer igaming companies: tax breaks, time zones, talent, and ticker tape.

products, or rendering. The tax credit can be claimed for a list of allowable related expenditures that can include wages, materials, and overhead.

WORDS BY RON SEGEV, ANDREW NG & REBECCA DALES

Tax Breaks

One of the great tax programs igaming companies can take advantage of in Canada is the Scientific Research and Experimental Development Tax Credit Program (SR&ED). Your igaming company may be eligible for SR&ED if it is involved in, among other things, algorithm development, system performance improvement, interoperability with third-party

A Canadian-controlled private corporation is eligible for federal and provincial corporate tax rate reductions on the first $500,000 of active business income earned in Canada in any given taxation year. The caveat is that this particular tax benefit is effectively limited to companies controlled by Canadian residents, though, as we will discuss below, for certain individuals, this is also less of a headache than most places.

Talent

Some truly big names in gaming have come out of Canada. Amaya Gaming, Bodog, Engine Media Holdings, Gamehost, and Score Media and Gaming, to name just a few, all came from the Great

White North. In addition, Canadians have emerged as industry leaders, founding or taking senior positions with companies such as PokerStars, Caesars Digital, Pala Interactive, and a host of other companies that have since merged into today’s big gaming conglomerates.

Canadian immigration law makes it feasible for individuals to come to Canada to start an igaming company or work in one. You’re essentially looking at two systems: permanent residency and work permits.

For permanent residency, there are three general pathways. For the Canadian Experience Class, the main requirement is that the individual accumulates 1560 hours of work experience in a “skilled” position over the course of three years.

Federally, a point system is used to determine qualification, spanning a wide range of areas including education level, work experience, and language. Provincially, a separate application can be filed to be nominated if you are, among other things, a high-skilled worker.

If you’re looking to bring in international talent, the system is certainly set up for you to do so. The Global Talent Stream program, in optimal conditions, allows the processing of 80% of applications in two weeks or less under two categories.

Time Zones

Canada and the US have always shared strong business ties. With the development of international igaming regimes and programs, that connection has only grown stronger. Compared with out-of-continent entities, Canada offers the excellent advantage of shared time zones and short travel times.

For example, Toronto, Montreal, New Jersey, and New York all operate within the same time zone. Vancouver, Los Angeles, Las Vegas, and Seattle operate in another, and between the two there is only a three-hour difference. This is extremely conducive to inter-city business development and relations.

Shared time zones, shared language, and media markets that tend to bleed into each other work to create a situation where Canadians have a great understanding of American culture. Canadians are avid consumers of American sports culture in a way that no other country experiences.

This cultural awareness of the US among Canadians makes it easier to build Canadian-based customer service, content, SEO, trading, and other US or North American-facing teams.

Ticker Tape

With all that in mind, perhaps the largest consideration for many igaming companies is far more singular: raising capital. Fortunately, accessing capital in Canada is fairly frictionless and cost-effective.

For many igaming companies, the goal is not to remain private, especially due to the capital-intensive nature of igaming business models. Canada is home to several exchanges: the Canadian Securities

Exchange, the NEO Exchange, the TSX-V, and the TSX, with listing requirements increasing in the same order. This means that companies can access capital at various stages and scale of development.

Going public is a lot less daunting than it seems and is an excellent way to obtain capital to develop your business and technology. Timing for each listing is highly case-specific, but the fastest everything could be completed would likely be six months, though more generally it usually takes about a year. As you have probably already noticed, the barriers are fairly low.

The environment in Canada is highly favorable to new igaming companies to establish themselves and raise capital.

The “4Ts” described above, in conjunction with a healthy population of investors with an appetite for igaming investments, make the Great White North an ideal location to set up shop.