Key Moments:
- Canada’s online gambling market was valued at $9.5 billion in 2025, making it the third-largest iGaming market worldwide by Competitive Earning Baseline (CEB)
- Offshore operators in Canada grew their CEB by 40.2 percent in 2025, adding $1.6 billion in a single year
- Ontario achieved an 85 percent channelisation rate, with only 15 percent of player activity remaining offshore after regulatory reforms
Market Valuation and Competitive Landscape
According to Blask’s USA and Canada iGaming landscape 2025 report, Canada’s online gambling sector reached a total estimated value of $9.5 billion in 2025, ranking just behind the United Kingdom and the United States by Competitive Earning Baseline (CEB). The market has drawn global attention, fueled by its rapid year-on-year growth among the world’s top five jurisdictions.
More than 230 brands are now competing for share, making for a crowded environment divided between provincially regulated operators and unlicensed offshore brands.
Offshore Growth Outpaces Domestic Brands
The report shows that offshore platforms are playing a dominant role. In 2025, the offshore segment’s CEB expanded by 40.2 percent, far ahead of the 23.1 percent seen among licensed domestic companies. This translated into a $1.6 billion growth for offshore operators in a single year, compared to $800 million generated by the domestic sector.
Currently, 63 percent of brands accessible to Canadian players lack a license, including major names such as Stake and Roobet, which have surpassed local market leaders in performance.
| Segment | 2025 CEB Growth (%) | 2025 Value Added ($ Billion) |
|---|---|---|
| Offshore Operators | 40.2 | 1.6 |
| Licensed Domestic Brands | 23.1 | 0.8 |
Ontario: Leading the Way in Regulation
Ontario continues to serve as a model for successful online gaming regulation. Since April 2022, the province’s open, multi-operator system has shifted most player activity onto licensed sites. This transition was facilitated by permitting established grey-market operators to gain licenses, ensuring minimal disruptions for users. As a result, Ontario has limited offshore activity to 15 percent, achieving an 85 percent channelisation rate.
Monopoly Markets Face Persistent Offshore Leakage
The report notes that provinces still adhering to monopoly models lag behind, on average capturing just 24 percent of local market activity, leaving 76 percent to unlicensed operators. Saskatchewan experiences the highest offshore leakage at 93 percent, closely followed by Alberta and Manitoba at 88 percent. Despite offering regulated alternatives, these areas struggle to rival the diverse offerings and superior user experience delivered by international brands.
| Province | Offshore Leakage (%) | Domestic Capture (%) |
|---|---|---|
| Saskatchewan | 93 | 7 |
| Alberta | 88 | 12 |
| Manitoba | 88 | 12 |
| Monopoly Model Average | 76 | 24 |
| Ontario | 15 | 85 |
Alberta Moves Toward Market Liberalization
Blask reports that Alberta is seen as the next focus for regulatory change. The province passed Bill 48 in May 2025, setting in motion a transition to a structure similar to Ontario’s open market. Currently, Alberta’s monopoly regime retains only 12 percent of market activity. The anticipated reforms are likely to bolster the domestic market, yet the report cautions that significant progress typically unfolds over several years.
Québec Considers Regulatory Alternatives
In Québec, debate is intensifying as the Québec Online Gaming Coalition (QOGC) presses for the introduction of privately operated platforms to challenge Loto-Québec’s monopoly. Loto-Québec posted approximately $1.1 billion in revenue from April to September 2025; nonetheless, criticism centers on the slow pace of digital expansion and a continuing focus on land-based gaming. QOGC claims that Québec is foregoing an estimated $220 million each year in potential tax revenue due to a lack of regulatory flexibility, with over 2,000 unlicensed websites serving players. Notably, two-thirds of residents are said to support a regulated open market, and 73 percent currently use private platforms.
Player Preferences and Leading Segments
Blask’s analysis indicates that online casino products attract the majority of Canadian players, followed by live dealer games, lottery, and fantasy sports. Within the casino subcategory, slots and Plinko are the most popular, while blackjack is the leading choice among live dealer options. Hockey remains the foremost sport for betting, though the NFL is gaining in popularity. New operators are capitalizing on these preferences; notably, Betty, a casino-centric brand, recorded the fastest CEB growth among the country’s top 10 operators.
- Author
Daniel Williams
