The term ‘iGaming’ encompasses a wide range of online gambling activities, such as online casinos, poker, and sports betting. The legality of iGaming differs around the world and in Canada, provincial authorities govern gambling activities within their region. How does that impact the iGaming industry in Canada and will the country see a boom in online gambling like the US?
There remain some regions in Canada where iGaming is not allowed, such as Newfoundland and Labrador, where online casinos and sports betting sites are illegal. However, there are many regions in Canada where iGaming is now legal and Ontario is the best example in terms of how popular iGaming has become in the country. The creation of iGaming Ontario (iGO) in 2022 was a landmark moment for iGaming in Canada and it has become one of the biggest iGaming markets in North America.
Prior to the creation of iGO, the unregulated market was booming in Ontario and other regions in Canada. The iGO has replaced the unregulated market and Ontarians now bet more frequently than ever before. If we look at the figures for September 2023, there were close to 1 million active player accounts, with an average monthly spend of C$191 per account. Not only has the introduction of the iGO been good for Canadian online gamblers but it is projected to create up to 22,000 jobs and C$2.1 billion in annual government revenue by 2031. Casino games are currently the most popular form of iGaming in Canada, followed by sports betting, and poker games.
Another strong sign of the increase in popularity of iGaming in Canada is the emergence of Canadian casino comparison websites. Prior to the creation of iGO in 2022, there were not enough legal online gambling sites in Canada to make having a comparison site worthwhile. That has changed and there are now plenty of online casinos and sportsbooks operating in the country, meaning players want to see comparisons so they can choose the best iGaming brand for their needs. Fastest payout online casinos Canada is just one of the many aspects of iGaming comparison now available to players in the country and a fine example of the many facets that come together to make a popular online casino or sportsbook.
Clearly the Canadian iGaming market is behind the US iGaming market because it started later. If we look at some of the recent figures for the US iGaming market, at the end of 2022, the total iGaming revenue for the United States was around $54 billion. If we look at the revenue for the month of December 2022 in the US, the figure stood at $459.9 million. That represents a 16% increase in revenue compared to the same month in 2021 and highlights the significant growth in the US market.
At the end of 2023, the Canadian iGaming market was believed to be worth just over $2 billion, which is a long way behind the $54 billion of the United States. However, as stated at the beginning of this section, the Canadian iGaming market was always going to be behind the US in terms of revenue due to the fact online gambling has been legal in some US states for longer than it has been in most of Canada. If we look at the figures for Canadian iGaming in 2020, it was estimated to be worth $750 million, meaning it is has almost tripled within 3 years. We must remember that many people in Canada did not feel comfortable gambling online until the introduction of the iGO, so the growth has been fantastic and comparable to that of the United States.
If we look at the figures for the final quarter of 2023, iGaming revenue in Canada saw a 72% increase when compared to the same period of 2022. That alone tells us that the iGaming industry in Canada is booming. Given the figures, if other provinces in Canada follow Ontario, there are strong signs that Canada can experience the same iGaming boom enjoyed by the US.
