Canada’s online gambling sector expanded significantly in 2025, reaching an estimated value of $9.5 billion and placing the country among the largest global markets. The latest industry data positions Canada third worldwide by Competitive Earning Baseline, trailing only the United States and the United Kingdom. At the same time, the market recorded the fastest growth rate among the top five jurisdictions, reflecting strong player demand and continued operator expansion.
Despite this growth, the structure of the market remains uneven. A fragmented regulatory environment has allowed both licensed and offshore operators to coexist, creating a competitive landscape that continues to evolve. More than 230 brands are currently active across Canada, contributing to a highly saturated and increasingly competitive space.
Offshore Segment Continues to Lead Market Growth
The most notable trend shaping the sector is the ongoing dominance of offshore platforms. In 2025, offshore operators recorded growth exceeding 40 percent, significantly outpacing the roughly 23 percent increase seen among licensed domestic providers. This difference widened the gap between regulated and unregulated activity.
Offshore platforms added approximately $1.6 billion in value during the year, compared to about $800 million generated by licensed operators. As a result, the majority of gambling activity in Canada continues to take place outside regulated systems. Around 63 percent of brands serving Canadian players operate offshore, reinforcing their strong presence across most provinces.
Well-known international platforms continue to attract players with broad product offerings and high engagement levels. In many regions, these operators capture the majority of demand despite the availability of locally regulated alternatives.
Provincial systems that rely on monopoly-style frameworks have struggled to retain users. On average, these models hold only about a quarter of total player activity within regulated channels, leaving a substantial share of the market to offshore providers.
Ontario’s Open Model Shows Different Results
Ontario remains the only province where a competitive licensing approach has significantly shifted player activity into regulated environments. Since opening its market to private operators in April 2022, the province has achieved an estimated channelisation rate of around 85 percent, with offshore participation reduced to roughly 15 percent.
This transition allowed operators previously active in the grey market to obtain licences, which helped maintain player continuity and encouraged migration to regulated platforms. Ontario’s market reached approximately $3.1 billion in 2025, making it one of the largest individual jurisdictions globally when viewed independently.
Licensed casino-focused operators dominate the province, with strong performance across key verticals. One operator, Betty, recorded the highest year-on-year growth among Ontario’s leading brands, initially targeting casual slot players before expanding its reach to a broader audience.
Player Behaviour and Provincial Challenges
Across Canada, player preferences continue to centre on online casino products. Slots and Plinko-style games generate the highest engagement, while blackjack leads within the live dealer segment. Other offerings, including lottery and fantasy products, attract lower levels of activity in comparison.
In sports betting, hockey remains the primary focus for Canadian players. Interest in the NFL has increased steadily, indicating a shift toward broader international sports engagement.
Outside Ontario, provinces such as Québec and British Columbia continue to rely on government-run platforms. These systems have not significantly reduced offshore activity. Québec’s regulated platform has been active since 2010, yet offshore operators still capture more than 80 percent of the market.
This imbalance has also raised concerns about lost tax revenue and the long-term sustainability of monopoly models. Public opinion in some regions appears to support a move toward open competition, with many players already using offshore services.
Alberta is expected to become the next province to adopt a competitive licensing system. Legislation passed in May 2025 laid the groundwork for market expansion, and preparations are ongoing. The province’s current government-run platform captures only a small portion of activity, estimated at around 12 percent. Industry observers view Alberta as a key test case for replicating Ontario’s approach.
The overall trajectory of Canada’s iGaming sector reflects strong demand alongside structural challenges. While the market has reached a significant scale, the balance between regulated and offshore activity continues to shape its development, with future policy decisions likely to influence how that balance shifts.
Source:
Canada iGaming Market Hits $9.5B Amid Offshore Growth, livedealers.com, March 24, 2026
