February 16, 2025

State of Gambling in Canada 2025

In 2025, the gambling industry in Canada stands at a paramount crossroads moment. While the national elections take centre stage, it is one that could impact gamers from the South up to the North of Canada. And while the industry may have progressed considerably in technological advancements and legislative reforms, more reforms are due to be addressed in the year to come.

Gambling in Canada has moved from restrictive laws to a booming market and is now a key contributor to the local economy. One of the main drivers of this growth is online gambling; the market alone is predicted to reach over $4.6 billion by the end of this year.

But it took man difficult years to get here. Historically, gambling in Canada was tightly controlled under the Criminal Code, which governed gaming and betting offenses. But over time, provinces gained authority to regulate and license these activities, which swiftly changed gambling laws in Canada.

Recently, one of the most noted regulatory changes was the passing of Bill C-218 in 2021. This legalised single-event sports betting nationwide, which were previously limited to parlay bets, where wagers involved multiple events. This move opened up substantial opportunities in sports betting, becoming an important catalyst for the industry’s growth.

Today, while online gambling is legal, operators in the Land of Maple Leaves now have to navigate complex gambling laws in Canada, as each province has its own set of rules.  There are often grey areas, especially when it comes to online operators providing services to residents across provincial border lines.

But what’s also on the agenda in 2025 is the political presidential race. There is a possibility of Prime Minister Justin Trudeau being replaced, which could have larger implications for gambling regulations that are currently on Parliament’s table. This includes the Sports Betting Ad Standards Bill which has been postponed until March 2025.

Also on the cards are proposed changes to fix long-standing grey areas and deepen consumer protections. These will impact provincial regulations and indigenous gaming rights and may set new standards for the industry.

Legal Framework for Gambling

Gambling in Canada is regulated under the Criminal Code of Canada, which allows provinces to oversee and license gambling activities within their jurisdictions. Each province sets its own rules that vary across the country. For instance:

  • Ontario: Leads with a competitive market, having opened its iGaming sector to private operators in 2022. With over 50 operators and 80 gaming websites, Ontario generates significant revenue and sets a benchmark for other provinces.
  • British Columbia and Quebec: Operate government-run platforms like PlayNow and Loto-Quebec, focusing on provincial monopolies.
  • Alberta: Adopted a rare charitable gambling model, where proceeds are reinvested into community programs.

The most impactful reform in recent years has been Bill C-218, which legalised single-event sports betting in 2021. This change spurred a wave of growth, particularly in Ontario, which reported CAD $3.34 billion in gaming revenue for the 2023–2024 fiscal year. Other provinces are now exploring similar frameworks.

In 2025, additional reforms are anticipated, including:

  • Cross-Border Gaming Rules: The Ontario Court of Appeal will decide on the legality of players participating in international gaming pools. This ruling could expand opportunities for cross-border poker and fantasy sports, fostering competition and innovation.
  • Private Licensing Expansion: Alberta plans to follow Ontario’s open licensing model, which would attract more operators while ensuring consumer protection.

Canadian online casinos remain a focal point of gambling regulations. Provinces like Ontario have implemented stringent licensing processes, ensuring enhanced oversight for fair play and anti-money laundering measures, centralised self-exclusion systems to protect vulnerable players, and collaboration with Indigenous communities to include diverse stakeholders in the regulatory framework.

Despite progress, challenges persist, such as navigating legal grey areas and balancing provincial autonomy with national interests.

Market Trends and Economic Impact

Online gambling trends in Canada has experienced explosive growth, driven by increasing internet penetration and mobile adoption. Platforms like OLG.ca and PlayNow dominate in their respective regions, while private operators flourish in Ontario’s open market.

The online gambling market is projected to reach CAD$ 22.57 billion in 2025, with online sports betting alone expected to contribute CAD$ 1.39 billion. Emerging sectors like e-sports betting and mobile-first platforms further underscore this trend.

The gambling industry significantly boosts Canada’s economy through tax revenues (contributing over CAD$12.54 billion annually to government and community programs), job Creation (supporting more than 135,000 direct jobs and 267,000 total positions, with notable growth in the online sector), and infrastructure investment (generating CAD$13.93 billion in capital construction, with Ontario receiving 49% of this investment).

These economic benefits highlight the sector’s importance as Canada’s largest entertainment industry.

In terms of consumer behaviour insights, Canadian gamblers increasingly prefer convenience and innovation. Key trends include mobile gambling (dominating the market with intuitive apps and seamless payment options), e-Sports Betting (gaining traction among younger demographics), and diverse gaming choices (from traditional casino games to fantasy sports and live dealer experiences).

Social Implications of Gambling

While the majority of Canadians gamble responsibly, for others problem gambling remains a deep concern. Research shows that 1.6% of Canadians aged 15 or older are at moderate-to-severe risk of gambling addiction, affecting approximately 304,000 people. Some provinces have therefore implemented Harm Minimization Programs to address this. These include:

  • Self-Exclusion Programs: Ontario’s centralised system allows players to opt out of all regulated sites at once.
  • Responsible Gambling Council Initiatives: Providing 24/7 helplines, counselling services, and educational campaigns.
  • Mandatory Cool-Off Periods: Enforced by casinos to help players remain in control.

These campaigns have positioned Canada as a leader in responsible gambling practices. But, when it comes to public opinion on gambling, the reactions are mixed. While many view it as a legitimate form of entertainment and a source of economic benefit, others are worried about youth exposure and problem gambling. Recent legislative efforts, such as Bill 269, aim to address these concerns by restricting advertising and celebrity endorsements.

International Comparisons

Canada’s uncommon approach to gambling regulation contrasts with quite a few countries like the United States and the United Kingdom. In the US, for example, gambling legislation vary by state. While some embrace it, other states restrict it. On the other side of the coin, the UK shows off a well-regulated market with strict advertising controls and diverse player protection measures.

Canada can learn a thing or two from international best practices, such as, the UK’s comprehensive self-exclusion program called GAMSTOP, or the US’s state-level collaboration for sports betting, and Scandinavian’s focus on reducing gambling-related harm through technology.

But despite this, Canadian online casinos are gaining recognition internationally, particularly for their focus on responsible gambling and technological innovation. However, challenges like limited cross-border collaborations and fragmented regulations hinder their global competitiveness.

Future of Gambling in Canada

2025 is expected to be one of groundbreaking developments in the Land of Maple Leaves. These include expanding cross-border gaming opportunities, streamlining license processes in provinces beyond Ontario, and potential federal guidelines to centralise provincial frameworks.

Emerging technologies expected to redefine the gambling experience include cryptocurrency gambling (to offer faster and more secure transactions), augmented reality (AR) casinos (immersive experiences), and AI-powered personalization (enhancing user engagement with tailored services).

So far, gambling laws in Canada have made remarkable progress. While provinces like Ontario lead the charge with more progressive markets, other regions like Alberta highlight innovative approaches, such as reinvesting gambling proceeds into local communities.

As Canada continues to expand this industry, it will need to strike a balance between economic growth and social responsibility. Addressing regulatory challenges and adopting responsible gaming practices will be essential for sustained growth.

With projections pointing to radical market growth in coming years, the future of gambling in Canada looks positive. But only time will tell.

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