Most forms of gambling have been legal in Canada since 1969. Legalizing these games has given rise to an incredibly diverse and lucrative industry. The launch of iGaming in the early 2000s has accelerated this growth and given players even more options than ever before.
Alongside the industry’s growth have come eye-watering revenues. As millions of players choose to place wagers each day, gambling operators across the country not only pay out millions in winnings but collect even more in revenue and profits.
Some forms of gambling, however, are distinctly more popular than others. These attract more players and higher revenues. Below, we’ll look at how much money Canadians are spending on gambling and which games are the biggest goldmines for operators.
How Many Canadians Gamble?
To understand how the gambling industry in the Great White North can reach such high revenue levels, let’s look at how many people gamble. Each player contributes toward the total revenue, even if the amount they spend doesn’t seem overly significant.
According to statistics, around six in every ten Canadians have gambled at least once in the past year, equating to around 23.36 million people. More than 19.3 million of these players have stated that they prefer to gamble online.
Which Area of Canada Spends the Most?
Ontario is home to the country’s most significant iGaming scene and is responsible for the largest revenue. After the launch of iGaming Ontario, which created a new legal framework and atmosphere in which operators can quickly enter the market, the province has seen explosive growth.
In 2023, Ontario exceeded expectations in terms of revenue. In quarter four alone (running October 2023 to December 2023), the iGaming industry in the province generated $658 million across the 72 licensed websites available. Around 1.2 million players contributed to this figure.
Only three territories in Canada didn’t contribute anything because online gambling is not yet legal in them: the Northwest Territories, Nunavut, and Yukon. Under local law, players from these areas can access offshore casinos but cannot access any operator from within the region.
How Much Do Canadians Spend on Gambling?
Despite the enormous revenues generated by gambling, the individual expenditure per player in the country is not excessive. Only 3% of gamblers admit to spending more than $100 per month on gambling activities. Among this group, there is no predominant gender, race, income status, or employment status; it features Canadians from all walks of life.
Around 43% of gamblers spend no more than $20 per month. These are players who use gambling solely as a form of entertainment but don’t want to overspend. In the middle are 14% of gamblers who spend between $20 and $100 each month. It should be noted, however, that these statistics come from a survey that expects players to be honest about their spending.
Based on the above statistics, the average Canadian gambler spends around $6.75 per month (or $81 per year) to get their gambling kicks across casino games, sports betting, bingo, and lotteries.
Looking at the revenues generated by the various forms of gambling, however, it is clear just how many people are gambling and how much money is being spent.
Bingo
Bingo has been a popular game in Canada for years. Offered by many retailers and online providers, the game is simple to play and is traditionally enjoyed more by the older gambling generation. As such, it still performs well and generates decent revenue.
Despite the game’s popularity, there are almost no statistics regarding its revenue in the country. What is known, however, is that the global bingo market is valued at around $2.66 billion, showing it is generating large sums internationally.
Sports Betting
Prior to Canada legalizing single-game betting in 2021, it was estimated that Canadian gamblers were placing wagers on the black market worth almost $10 billion per annum. With legal options now available, this has increased.
In Ontario alone (which reports the most comprehensive statistics), sports betting generated more than $1.48 billion between 2022 and 2023. This far exceeded initial estimates, which predicted an industry revenue of just $840 million.
Casinos
As expected, casinos (both physical and online) are the highest earners in the gambling sector. With multiple physical casinos and a slew of online options, players in Canada are spoilt for choice when it comes to gambling options.
Revenue for casino games is estimated to have reached more than $15 billion by the end of 2023. Online gambling contributed significantly to this, estimated at around $13.7 billion, as players logged on to gain access to the latest games from providers like IGT and NetEnt.
This extensive growth has been aided by provinces like Ontario, which have created profitable markets by launching bodies like iGaming Ontario. As such, revenue is expected to continue rising significantly over the next few years.
Lottery
Canada is home to incredible lottery games that have been popular among players since they began in 1970. Lotteries remain one of the most popular ways to gamble, and they have also made the move to online gameplay, further encouraging the growth of the sector.
In 2022 alone, lotteries generated revenues of almost $10.43 billion. Ontario was again the largest spender of this amount, equating to $4.65 billion of the revenue. In second place was Québec, which generated almost $1.56 billion, followed by British Columbia ($1.51 billion) and Alberta ($992 million).
Conclusion
With iGaming continuing its ever-present rise among players and more accessibility to games available, many estimate that gambling revenue growth is far from stagnant. However, it remains to be seen whether this growth will continue at the same pace.
With problem gambling being a concern for players and operators, many steps are being taken to ensure that the industry remains profitable while protecting at-risk players. If the level of growth experienced can continue while ensuring players are safe, there is no telling how large the gambling industry in Canada will grow in the coming years.
