From zero to hero: An analysis of Ontario and the rise of Canada’s regulated iGaming market

Some things start with a bang but end with a whimper; that is not an expression that can be used to describe the Ontario gambling market. It was more like a rocket launched with an enormous roar that has just kept going and growing. Not only has the legislation proved a massive boon for the province, its coffers, and the safety of its citizens, but the success is leading to seismic changes in other provinces, too. You can well and truly say that online casino gambling and sports betting have landed on fertile soil in Canada. The sky seems to be the limit when it comes to growth and success. Everyone is now vying for a slice of the action, and there are exciting opportunities right across the country.

Everyone was excited about the possibilities that would be unlocked by the launch of Ontario’s regulated gambling market in April 2022. After all, Canadians are inveterate gamblers, and playing casino games or taking a punt on the outcome of a sporting event seems to be part of the cultural DNA, with 60% of Canadians saying that they regularly partake in gambling. 43% of the population gamble at a relatively modest level, spending between $1 and $20 a month, while 3% are high-stakes players spending over $100 a month.

Canadians have been navigating the world of online casino gambling for years, and even before the Ontario market launched, there were 19 million active online accounts. Online Casino review sites like Casino.ca have been guiding players to help them find the best online casino in Canada that suits their playing style and budget for decades.

Everyone knew that the changes taking place in Ontario were going to be momentous, but it has still been a revelation to witness what happened. The commercial market in Ontario aimed to tempt people away from offshore gambling sites and persuade them to play on regulated sites. The primary reason was customer protection, though boosting provincial revenues was undoubtedly also a driving force behind the changes to the law.

From April 2024 to March 2025, Ontario gross gambling revenue (GGR) surpassed all expectations, with CA$3.20 billion being generated and 32% growth over the previous year. Wagering soared to CA$82.7 billion, up 31% year-over-year, with online casino gaming being the most popular vertical. According to Ontario’s Alcohol and Gaming Commission, almost 84% of people play on regulated sites – a huge feat for the regulators.

Ontario had the advantage of being able to go from ‘zero to hero’ and tackled the issue of offshore gambling in one fell swoop. Now, other provinces are looking on and possibly wondering if their approach of attempting to offer alternative solutions was the right one.

Alberta is an interesting case study when it comes to changing direction. Initially, the province opted for offering a controlled online casino operation through the Play Alberta site. However, last year, it was announced that the province would also be launching its regulated market, using Ontario as a blueprint. That said, the challenges in Alberta have been different as they want to move people from the unregulated offshore market to the new commercial market without cannibalising the Play Alberta customer base.

Alberta’s messages and advertising need to work differently from what was done in Ontario, particularly as recent polling has shown that many Albertan players believe the offshore sites they are currently playing on are regulated. Only one in ten players play exclusively on the Play Alberta site, according to polling carried out by Ipsos earlier in the year, and less than a quarter use Play Alberta at all. Three-quarters of Albertans are playing on offshore sites, where many operators have proven trustworthy to players.

Alberta has recently completed the legal steps to launch its commercial online gambling market, but the details of exactly how it will work are still being finalized. With the new Alberta igaming Corporation being launched, commercial operators will want assurance that they’re not being regulated by a body that also competes with them. While the move by the department responsible for cutting red tape has been broadly welcomed, the process of bringing the vision into practice has ironically got entangled in quite a bit of red tape itself. By contrast, there are now definite promises of an early 2026 launch from Dale McNally, the author of the iGaming Alberta Act.

It appears the rules and regulations for both Ontario and Alberta are evolving as the reality on the ground (or in the virtual space) becomes clearer. Concerns about physical casino revenues and viability have played a significant role in getting the balance right. Even with the most careful planning, however, it is often the unexpected factors that create the most change. Many people credit the explosion in online casino popularity with extended lockdowns during the COVID-19 pandemic. When trade at bricks-and-mortar venues picked up, it was not at the cost of online activity.

However, the latest threat comes from south of the border as trade tensions with the USA ramp up. Many leading land-based casinos are heavily reliant on the American tourist trade, and relations have cooled with the imposition of tariffs and trade barriers going up. It is not only visitor numbers that are being affected; the physical sector relies heavily on US-supplied slot machines and video lottery terminals. When President Trump put tariffs on Canadian exports, the Canadian provinces began placing restrictions on the acquisition of American-made gaming machines.

Therefore, the physical venues are not able to easily or cost-effectively import the latest and most exciting hardware. The same cannot be said for online gaming software. The US is not the same dominant force in the online gaming market as it is in the legendary resorts of Las Vegas and Atlantic City. Therefore, the trade in new games, platforms, and mechanics has not been affected in the same way. Canada has many home-grown igaming businesses, and the online sector is a global place.

The bottom line: in Canada’s gambling landscape, online casinos look set to be the biggest winners.