A government-backed working group on online gambling in the Canadian province of Quebec has recommended that a licensing system be introduced to allow private operators to legally compete in the market.

The working group was established in 2010 by then Minister of Finance Raymond Bachand, tasked with monitoring the activities of Loto-Quebec’s online gaming offering.

In a report released Thursday, the working group said that Loto-Quebec’s Espacejeux website has not contributed to an increase in problem gambling as many had feared. However, it found that the site has also failed to generate additional revenue for the treasury to fund improvements to responsible gambling initiatives, as well as failing to channel consumers away from unlicensed online gaming sites.

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