Canada’s online gambling sector continues to expand, reaching an estimated $9.5 billion in 2025 and ranking as the third-largest iGaming market globally by Competitive Earning Baseline. Despite its scale, most activity still flows to offshore operators, underscoring ongoing regulatory challenges.
The market trails only the United States and the United Kingdom and shows the fastest growth among the top five jurisdictions. More than 230 brands compete for players, creating a divided landscape between provincial platforms and unlicensed international operators.
Offshore Operators Maintain Strong Lead
Unregulated operators account for most online gambling activity in Canada, with their share increasing. In 2025, offshore platforms grew by over 40 percent, compared with just above 23 percent for licensed providers.
Offshore operators added about $1.6 billion in value during the year, compared with $800 million from regulated platforms. Around 63 percent of brands serving Canadian users remain unlicensed, with Stake and Roobet among the leading names.
Monopoly-based provincial systems continue to struggle. On average, regulated platforms captured only about 24 percent of total activity in 2025, leaving the majority to offshore sites.
Regional figures highlight the imbalance. Saskatchewan recorded offshore participation at 93 percent, while Alberta and Manitoba followed at 88 percent. Québec’s Espace-jeux still sees 83 percent of activity go offshore, and British Columbia’s PlayNow faces a 59 percent offshore share.
Ontario Model Demonstrates Shift Toward Regulation
Ontario remains the only province to significantly shift activity toward regulated platforms. Since opening its market in April 2022, it has reached an estimated 85 percent channelisation rate, leaving offshore activity at about 15 percent.
The province allowed grey-market operators to obtain licences, enabling existing users to transition with minimal disruption. Ontario’s market reached roughly $3.1 billion in 2025, placing it among the largest globally.
Licensed casino-focused brands dominate, with Betty posting the fastest growth at 271 percent year-on-year after launching in February 2023.
Alberta Prepares for Market Opening
Alberta is preparing to introduce a competitive licensing system following the passage of Bill 48 in May 2025. Its current PlayAlberta platform holds about 12 percent of market activity, with offshore operators dominating the rest.
The province’s market reached around $1.8 billion in 2025. Operator registration opened in January 2026, with companies positioning ahead of launch.
Pressure Builds for Broader Reform
Debate continues in other provinces, particularly in Québec, where calls for reform have intensified. Industry groups argue that the existing monopoly structure limits growth and reduces potential tax revenue, with estimates suggesting annual losses of around $220 million due to offshore activity.
Public sentiment appears to support change, with a majority of residents favouring an open market and a large share already using private platforms.
Canada’s experience reflects a broader pattern in regulated markets. While provincial frameworks established legal options, they have not fully redirected demand away from offshore providers. Ontario’s model has shown a different outcome, and Alberta is set to test whether similar results can be replicated elsewhere.
Source:
“Canada’s iGaming market: mostly offshore”, blask.com, March 23, 2026
The post Canada iGaming Growth Driven by Offshore Dominance first appeared on RealMoneyAction.com.