Online gaming’s rapid expansion steers Canada’s gambling sector away from traditional casino visitation

Canada’s gambling market is undergoing a structural shift as online gaming attracts a growing share of players and revenue, according to new industry estimates that point to continued expansion through 2029. Sector-wide revenue is expected to close 2025 at $15.6 billion and reach approximately $17.5 billion by the end of the decade.

Online casino activity remains the primary driver of this growth, according to Imperium Comms. Industry data indicates that online casino revenue will total $9.6 billion this year, with an estimated 3.2 million Canadians, 10.3% of the adult population, participating. About 7.5% of players favor online table games. Player preferences show blackjack accounting for a 45% participation rate and roulette for 38%, both higher than global averages

Provincial regulation continues to shape overall market performance, with Ontario operating the country’s largest regulated online gambling framework. Since permitting iGaming in 2022, its revenue has risen 129% over three years.

The province recorded C$3.2 billion ($2.29 billion) in gaming revenue for the 2024–25 financial year, marking a 32% increase. The Alcohol and Gaming Commission of Ontario currently licenses 49 operators across 77 active websites providing casino and sports betting services.

Canadian operators continue to invest in physical facilities. The $1-billion Great Canadian Casino Resort in Toronto opened in 2023 with 328,000 square feet of gaming space, 4,800 slot machines and 145 table games, alongside a major entertainment venue.

The Saskatchewan Indian Gaming Authority is expanding its Northern Lights Casino by 31,000 square feet, focusing on new entrances, upgraded hospitality areas, and office space. In early 2024, Alberta saw the opening of Bear Hills Casino & Travel Resort, featuring 200 slot machines, 10 table games, and a full-service restaurant.

Other conditions are affecting land-based casino operations. Over the past year, import tariffs on U.S.-manufactured gaming machines have limited access to new equipment from companies such as IGT and Konami.

Alberta, Saskatchewan, British Columbia, and Nova Scotia have imposed restrictions on buying additional U.S.-made machines, leaving operators reliant on aging terminals while online platforms continue releasing new games each month. Alberta accounts for 16% of Canada’s slot machine and VLT market.

Tourism trends in Las Vegas are also drawing attention from analysts monitoring Canadian market conditions. Visitor arrivals to the city declined between 5.7% and 6.4% over several months last summer, followed by a 13.5% drop in September. Rising travel and accommodation costs, including resort fees and surcharges, were cited as the main contributors.

Long-term data indicate that some Canadian casinos were experiencing reduced activity before the recent online surge. Halifax Casino in Nova Scotia recorded peak revenue of $75 million in 2006–07, which had fallen to $54 million by 2014–15, well before the rapid growth of iGaming. Revenue later declined to about $9 million following the pandemic.

Consumer behavior studies show Canadians frequently combine online and offline experiences in retail settings, with 88% of shoppers using both channels. Analysts note that this blended approach is reflected in entertainment choices, including gambling.

The sector employs about 135,500 people nationwide, including an estimated 25,000 positions tied directly to iGaming. Annual tax revenue from online operations is forecast at roughly $450 million. However, the presence of offshore casino websites accessible to residents complicates revenue measurement, as activity on these platforms is not captured in national statistics.