Canada iGaming Market Hits $9.5B Amid Offshore Growth

Canada’s online gambling sector reached an estimated value of $9.5 billion in 2025, placing it among the largest markets globally and reinforcing its position as a key focus for operators and suppliers. The latest industry analysis ranks the country third worldwide by Competitive Earning Baseline (CEB), behind only the United States and the United Kingdom, while also recording the fastest year-on-year growth among the top five markets.

This rapid expansion has unfolded within a fragmented regulatory framework. With more than 230 brands active across the country, the competitive environment continues to intensify. At the same time, a clear divide persists between provincially regulated platforms and a large offshore segment that continues to capture a significant share of player activity.

Data from the report shows that offshore operators remain the dominant force in Canada’s iGaming market. In 2025, offshore CEB increased by more than 40 percent, compared to roughly 23 percent growth among licensed domestic operators. This imbalance contributed to a widening gap between the two segments.

Offshore platforms added approximately $1.6 billion in value over the year, while domestic operators contributed about $800 million. As a result, unlicensed operators now account for the majority of activity, with around 63 percent of brands serving Canadian players operating outside the regulated system.

Leading offshore brands, including Stake and Roobet, continue to outperform many licensed competitors in terms of reach and engagement. Across most provinces, offshore platforms still capture the bulk of demand despite the presence of regulated alternatives.

The broader national picture reflects this imbalance. Provincial systems that rely on monopoly-style regulation have struggled to attract players away from international operators. On average, these regions retain only about a quarter of total activity within regulated channels, leaving the remainder to offshore platforms.

Ontario stands apart as the only province to achieve a high level of channelisation. Since opening its market to private operators in April 2022, the province has redirected the majority of player activity into licensed platforms.

The transition allowed operators that had previously served players in the grey market to apply for licences, which helped maintain continuity for existing users. This approach supported a smoother migration to regulated environments and contributed to an estimated 85 percent channelisation rate, leaving offshore activity at roughly 15 percent.

Ontario’s market alone reached around $3.1 billion in CEB in 2025. If assessed independently, it would rank among the world’s larger markets. Licensed casino-focused operators dominate the provincial landscape, with all top-performing brands operating under regulation.

One of the fastest-growing operators in Ontario has been Betty, which reported the highest year-on-year growth among the province’s top ten brands. Initially designed with a focus on female casual slot players, the platform has since broadened its audience while maintaining strong growth momentum.

Outside Ontario, most provinces continue to rely on single-operator systems, and these models have shown limited success in retaining players. Québec, for example, has operated a government-backed online casino since 2010, yet offshore platforms still account for the majority of activity, capturing more than 80 percent of the market.

A similar pattern appears in British Columbia, where offshore operators maintain a dominant share despite the presence of a regulated platform. Across the country, the absence of competition has limited the ability of licensed operators to match the product range and user experience offered by international brands.

Recent estimates also suggest that Québec is losing substantial tax revenue due to offshore activity, while public sentiment increasingly favours opening the market to private operators. Surveys indicate that a majority of residents support a regulated competitive model, and a significant portion already engages with unlicensed platforms.

Alberta is expected to become the next province to adopt an open licensing system.

Legislation passed in May 2025 established the foundation for a competitive market similar to Ontario’s, with preparations already underway for operator entry.

Currently, the province’s government-run platform captures only a small portion of total activity, estimated at around 12 percent of its CEB. Industry participants anticipate that the introduction of private operators could shift a larger share of demand into regulated channels, although results are expected to develop gradually.

Registration for operators began in early 2026, and several brands have already signalled plans to enter the market once it becomes fully operational. Alberta’s transition is widely viewed as a key test of whether Ontario’s model can be replicated elsewhere in Canada.

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Canadian player behaviour remains centred on online casino products, which continue to generate the highest levels of engagement. Slots and Plinko-style games lead this segment, while blackjack dominates the live dealer category. Other verticals, including lottery and fantasy offerings, follow behind in terms of popularity.

In sports betting, hockey remains the most prominent sport, though interest in the NFL has grown steadily, reflecting broader shifts in audience preferences.

The combination of strong demand, rapid growth, and regulatory divergence continues to shape Canada’s iGaming sector. While the overall market has reached a significant scale, the balance between offshore and regulated activity remains uneven, with future reforms likely to determine how that balance evolves.

Source:

Canada’s iGaming market: mostly offshore, blask.com, March 23, 2026