How much you lose in casinos with forex spreads: A case study

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We are iGaming experts and connoisseurs of the forex exchanges rates. We understand that the online gambling industry lacks transparency, especially when it comes to making transactions and conversions.

For this function, we have created this definitive study that underlines various aspects of the Australian gambling industry, data accumulated based on our extensive experience in this domain, all with regards to Forex. We think that to produce an educated financial decision, the customer must know every part that plays in the back ground and which could influence his final gambling activities.

The relationship between Forex and the Gambling Industry

The first question we must answer is: What is the relationship between the two?

As you already know, Forex stands for forex, a global marketplace for trading international currencies and their derivatives. The relation between this marketplace and the gambling industry comes forward each time a customer desires to make a transaction on a Australian online casino that doesn’t provide CAD as its’ currency.

In simple terms, you will make a transaction with Forex pairs such as for instance CAD- EUR (suppose that the internet casino sets EUR as currency by default). Therefore , a conversion will take place. When this kind of action is manufactured, inevitable differences involving the bid and get priced can look, a difference which is named spread.

You might ask: How many players do access online casinos that don’t allow CAD transactions?

We’ve extracted the answer from our database:

9, 14% of players from the Australian gambling industry could be a low number, when compared with 90, 86% of CAD casino users. But we cannot ignore this percentage.

To include an easy-to-understand answer to the most complicated questions for the 9, 14% users, our gambling experts have analyzed 409 iGaming sites, which covers approximately 80% of the Australian gambling market. It should be noted that only casino operators that assist respect to at least one licence-granting authority have already been selected.

Recommendation: On ipoly.xyz you will find 84% of on line casinos that do permit CAD transaction. We urge our clients to check them thoroughly and select usually the one where your money won’t meet losses.

The Forex pairs CAD- EUR or CAD- USD will be the most common ones. After having a thorough investigations our specialists have figured approximately 66% of online casinos that don’t have CAD as a currency, will have set automatically either EUR or USD currencies.

The matter has been further researched and the following data’s have been extracted:

On the basis of the study we’ve realized we’ve unearthed that from the operators who don’t permit CAD deposits, 66% of these allow the CAD-EUR and CAD-USD forex pairs.

As exemplified in the chart from those 66% of on the web casinos the usual pair undergone by Australians may be the pair EUR-CAD as 25% of such casinos permit only EUR transactions. The next pairs and more exactly the CAD-USD, CAD- GBP, and CAD- Crypto (such as Bitcoin, Ethereum, Tether, etc) are confronted as much as 3%. The past forex pairs mentioned, the same condition as the one from the CAD-EUR pair applies which can be that only deposits in the mentioned pairs are allowed.

Our primary objective with this study is to reveal exactly how many on the web casinos emphasizing the Australian market provide CAD as currency, just how can a gambling licence influence this aspect, and the typical spread on payment techniques found standard on such sites. Our purpose is always to inform the Australian customers of the rates that may influence their transactions, suppose that an operator does not allow CAD payments to be produced.

European Gambling licences influences

From the 80% analyzed casino operators, our experts have found that 35. 21% have received a Curacao licence and 31, 05% work under the legislation of the Malta Gaming Authority.

To understand clearly the difference between them, we must first answer the following question:

What is the difference between Curacao licensed casinos and Malta Gaming Authority licensed casinos?

Casino operators usually choose a Curacao license as it is more accessible. Therefore , more straightforward to obtain by not imposing way too many rules. Nevertheless , as experts in the iGaming domain and with vast experience backing us up, we must mention that casinos with only such a licence usually do not add to its trust.

It's indeed efficient and is usually ideal for startup casino operators, but we don’t recommend such platforms. Suppose you do want to gain access to such casino operators. When this happens, we advise every individual to test the licence’s validity. If the licence isn't valid anymore, you should avoid it no matter what.

In contrast to Curacao, a Malta Gaming Authority licensed casino operator must undergo extensive strict audits and meet precise regulations. Malta Gaming Authority, or in short MGA, is a pillar in the gambling niche. Therefore , we advise each Australian individual to start out their gambling activities on platforms with such a licence available.

So , from the sum total of analyzed iGaming websites, 16, 38% of them don’t accept CAD. From this amount, 91% normally have EUR set as default.

Let’s think about this research and the very fact the most include the Curacao and MGA licence. We are able to say that almost all off-shore online casinos operate in advantageous fiscal jurisdictions from either the European Union, such as for instance Maltese or with strong European influences, and we reference Curacao.

We’ve further investigated the matter by breaking up the MGA and Curacao operators and checking how many do not provide CAD transactions.

Let’s split the 84% casinos that do accept CAD deposits based on their licence:

PercentageLicence
34,11%Curacao
33,24%MGA & UKGC
23,62%Only MGA
6,12%Only UKGC
2,91%Other licences such as Gibraltar, Kahnawake

Now, that you know the kind of licence-granting authority is normally find on CAD casinos, we’ve further investigated these platforms to see if indeed they allow payment methods well suited for Australian players. Founded on the investigation the following data has been extracted.

As mentioned, approximately 91% of casino operators usually do not accept CAD transactions and instead permit EUR. Therefore , a customer with a bank account in CAD will need to make a forex transaction when depositing. The CAD amount must certanly be sold for EUR.

This example is often undergone in the Australian gambling market because so many operators result from the European jurisdiction.

Recommendations: 15% of CA casinos with MGA licence do not permit CAD transactions, when compared with 20% of operators that are included with a Curacao licence. Your odds are higher along with your money safer in the event that you join an MGA casino.

In such circumstances, the following question arises:

What to do in case you cannot access an online casino with CAD?

Ideally, we recommend making payments only on such platforms. But we realize that the reality is different. Our team of specialists has prepared this study to be able to include reasonable solutions and provide transparent data about the actual events to ensure that Australians could make the best financial decision.

The actual solution to such circumstances is always to verify the rate established by the bank or payment method you have a merchant account with. Unfortuitously, this really is frequent in the Australian gambling industry as 91% of on the web casinos usually do not accept it.

Another option is to have an account created with the imposed Forex, such as EUR in our case.

For an improved understanding of each solution distributed by our specialists, we will explain them separately.

1. Verify the forex rate

When you need to convert from CAD to EUR, a spread on currency pairs can look. This will be different widely as it can usually fluctuate on the total amount of currency traded.

Let’s take into consideration the following table:

DateCAD/EUR= Price
May 31st 20220.6788
April 1st 20220.6786
February 1st 20220.6443
October 1st 20220.6409
August 1st 20220.6328
June 1st 20220.6529

As it can be noticed in the above dining table, approximately each month the market is fluctuating. Observe that the table was realized with the open price presented at this time of writing.

Take note: Since the foreign exchange fluctuates on an everyday basic, it may influence your money and balance account

Whilst the spread is not calculated by the casino operators but by banks, we’ve selected the absolute most used banking options utilized by Australian players at online casinos.

The methods are:

  • Skrill Moneybookers;
  • Neteller;
  • Ecopayz;
  • Australian Banks;
  • Card Payments (such as Visa & Mastercards);
  • Interac;
  • Transferwise.

To have a clear image that payment method is theoretically most appropriate, we’ve done a study that we’ve extracted the following data’s:

payment methodApproximately Spread
Skrill Moneybookers4%
Neteller4%
EcoPayz3%
Australian Banks3~5%
Card Payments3~5%
Interac3~5%
Transferwise0.5%

The percentage provided applies to each deposit and each withdrawal you can make. For that reason in the event that you choose Skrill Moneybookers as a method, you need to consider you will lose approximately 4% of the total amount you either deposit or cash out.

We have the following situation:

We shall exemplify this 4% spread using a simple situation with a typical deposit of €100 utilising the exchange rate of C$148. 06 represented by the total amount presented at this time of writing the research.

Therefore , to create a deposit from your bank-account, C$153, 98 will be debited; guess that the spread should indeed be 4%. Basically, you will eventually lose a sum of C$5, 92 when making the payment.

Now, suppose you want to make a withdrawal from the online casino. The same 4% spread will apply.

Because of this scenario, we shall utilize the same amount of €100. You shall receive the amount of C$142, 12. This translates with a loss equal to €4.

We’ve given an example using a small amount of money, and the spread of 4% isn't high. Nevertheless , remember that when creating transactions with higher amounts, the losses will be significant. Hence, influencing your gameplay.

Tips: Transferwise is the ideal method when coming up with deposits or withdrawals whilst the spread is 0. 5%. For that reason the losses in your money won't be as significant when compared with a spread of 4% from using Skrillmoneybookers or Neteller.

Bear in mind: If 9, 14% of player lose on average 3, 5% per transaction because of the forex spread, then in the casino market approximately 0, 31% of the transaction value is lost on forex spreads. The calculation realizes by our gambling experts doesn't range from the fluctuating prices.

2. Open a Bank account directly with the currency EUR

By opening a multi-currency banking account, you might convert between CAD and EUR without worrying about the currency fluctuation or have any rate risks.

On the basis of the research created by our experts approximately 9, 14% of casino players choose to play at non CAD casino, while 90, 86% join only CAD platforms. For that reason this means that approximately 9, 24% of Australians choose either to open an EUR account or verify the forex rate.

Managing and holding your cash through this method enables you to access any 16, 38% online casinos that usually do not permit CAD transactions. Besides this, most bank accounts will enable multi-currencies to come with strict controls to shield the accounts and keep your funds safe.

In the Australian gambling market, 84% of on line operators do offer their customers the possibility to realize CAD transactions. Regrettably, we can not omit the 16, 38% of operators that usually do not permit CAD payments. As experts in this domain, we now have thoroughly studied and researched this topic to provide relevant answers to every Australian person that desires to access the 16, 38% of casinos.

Opening a free account directly in EUR should indeed be the absolute most accessible and easier to manage solutions. Still, we do realize that it might not be feasible for some, as each individual has the directly to what it’s best for him. Consequently , even if the first solution, that will be always to verify the forex rate, may be challenging to track daily, it's the most at your fingertips option.

References:

  • Investopedia
  • Malta Gaming Authority
  • Yahoo Finance

Please note:

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