What is Channelization?
Channelization is the share of total gambling activity, measured by spend or players, that takes place through licensed, regulated operators rather than unlicensed or offshore sites.
Regulators use channelization as a measure of how well a regulated market is competing with the black market. A high figure suggests most players are using licensed sites, where operators must follow rules on age verification, anti-money laundering and responsible gambling. A low figure suggests players are drifting to unlicensed operators beyond the regulator's reach.
The term has become central to debates about legalisation and restriction. New Zealand has cited low channelization as a reason to legalise online casino gaming, while the Philippines saw its channelization rate fall sharply after the central bank cut payment links to licensed gambling sites. Analysts warn that tightening rules can sometimes reduce channelization rather than improve it, if players simply move to offshore platforms instead of leaving gambling altogether.
In the news
CasinosSingapore casino visits by locals fall for third year running
Local footfall at Singapore's two casinos dropped 3.2 percent in 2025, extending a post pandemic decline, the regulator's annual report shows.
RegulationAsia-Pacific regulators embrace 'channelization' to tackle gambling black markets
A metric once confined to Europe is reshaping how New Zealand, the Philippines and Australia judge the success of gambling regulation.