Gambling Popularity in Canada

Gambling is one of the most popular recreational activities in the world, creating a multi-billion dollar industry that covers everything from retail betting offices, bingo halls, and race courses, to online betting operators and casinos.

Canada’s gambling industry is robust despite a complicated regulatory system, which varies by province. Online sports betting sites are generally allowed, yet online casinos are prohibited from operating within most Canadian provinces, leading many consumers to explore offshore, crypto, and instant casinos in Canada, all of which are open to Canadian residents. And, it’s worth noting that the revenue from platforms like these isn’t included in the figures we’re looking at below, as they are not based within Canada.

One significant reason that gambling is so popular in the country is that bettors are not taxed on their winnings in most cases, which helps to encourage consumers to explore the different betting markets for special events or enjoyment.

Canadian Gambling Regulations

Like U.S. gambling, Canadian betting regulations are decided by the different provinces leading to a confusing and fragmented betting landscape.

The Canadian Criminal Code provides a federal law across the entire country that bans all lotteries, betting, and gaming unless carried out and regulated by the ten different provinces.

The code is an overarching statute that gives autonomous states the powers to licence and regulate different betting markets, with each appointing unique regulatory frameworks to govern activities.

Ontario has two acts that help to control gambling in the province, the 1992 Gaming Control Act and the 1999 Lottery and Gaming Corporation Act. Likewise, Manitoba, Quebec, and Saskatchewan also have two acts that control betting in their respective jurisdictions.

Manitoba uses its Liquor and Lotteries Corporation Act alongside the Liquor, Gaming and Cannabis Control Act. Quebec has the Société des Loteries du Québec and Lotteries, Publicity Contests, and Amusement Machines acts. Saskatchewan has its Gaming Corporation Act and the 1997 Alcohol and Gaming Regulation Act.

Alberta controls betting activities through the Gaming, Liquor, and Cannabis Act while New Brunswick and Nova Scotia both have their own Gaming Control acts.

The Northwest Territories and Yukon provinces operate betting regulations under their respective Lotteries and Lottery Licensing Act.

Online gaming throughout Canada has typically operated in a grey area with sites prohibited from being based in the country.

Offshore betting operators are also prohibited from advertising directly to Canadian consumers. However, it is not illegal for Canadians to use them.

Offshore betting operators provide a way for people in countries where betting is banned or restricted to explore a wide selection of markets.

It can also be used by people looking for casinos without self-exclusion or unique betting markets that are not as popular in different areas.

Many U.S. states that still prohibit online betting have many bettors that use offshore facilities, as does Canada.

Ontario became the first to regulate the online marketplace on the 4th of April 2022. It allowed operators to register with the Alcohol and Gaming Commission of Ontario (AGCO) and enter into an agreement with its subsidiary, iGaming Ontario.

Ontario could be joined by other provinces in time but it is still the only one to offer a regulated iGaming marketplace for private operators to work in.

Canadian Gambling Statistics and Demographics

Gambling in Canada is a popular activity with 60% of its citizens having placed a bet at some point. There are currently over 19.3 million active gamblers in Canada with the average Canadian having a monthly spend of $6.75.

63% of Canadian men say they gamble every month, and 56% have gambled online. The numbers are slightly lower for women with 57% gambling every month and 43% having placed a bet online.

Online gambling revenues exceeded $3 billion in 2023 and a projected compound annual growth rate of 6.39% could see this figure rise to just under $8 billion by 2028.

The average spend of $6.75 by Canadians can be further examined with only 3% spending more than $100 every month. The highest percentage of people spend up to $20 per month, 43%.

While there are some differences in gambling behaviours across different Canadian provinces, the difference is negligible with relatively similar amounts of people engaged with the betting industry.

Older age groups between 35 and 54 are the most likely to bet and spend more money compared with 18 to 34-year-olds.

Studies show that lower-income homes are less likely to spend money on gambling with 45% of households earning $25,000 or less not betting at all. 

39% of households earning between £25,000 and $55,000 don’t bet and 38% of households earning over this don’t regularly bet. This shows that the average Candian’s income does have a bearing on whether they are likely to bet.

Retail casinos in Canada are extremely popular and earn around $16 billion per year with the most popular and lucrative casino activity being slot machines.

Horse racing in Canada is another popular betting market with consumers able to bet in retail shops or at racecourses. 

Racetracks of Canada represent more than 40 Canadian racetracks and state that the horseracing industry in the country helps to generate around 50,000 full-time jobs and contributes more than $5.5 billion every year to Canada’s economy.

Conclusion

The popularity of the gambling industry in Canada is in a healthy position at the moment. However, the differences between regulations between provinces coupled with restrictions on operators being able to set up online betting sites in Canada could be holding the country back.

Improving technology means that the majority of consumers conduct most of their business online with mobile devices. If the rest of Canada follows Ontario’s lead and creates its own online betting regulations, the industry could go from strength to strength, with Canada’s economy benefitting with significant revenue increases.

Photo by Jason Hafso on Unsplash