Regulated gambling in Canada is ever-evolving. With Alberta learning valuable lessons from the guiding light of Ontario in mind, we dive into why Canadians are still inclined towards offshore betting when the regulated market offers so much more.
Canada’s regulated gambling market has made significant progress in recent years, but a large number of players continue to look beyond the licensed sector.
New research suggests that offshore gambling remains a major part of the Canadian market, with a substantial number of punters choosing operators outside the country’s provincial regulatory systems. The findings raise questions about why these sites continue to attract players despite the growing availability of regulated options.
With Alberta now joining Ontario in offering a competitive private iGaming market, the latest developments could prove an interesting test of whether greater choice indeed encourages more Canadians to stay within the “legal” sector.
The scale of Canada’s offshore gambling market is hard to ignore. Research from Casino Canada, which analysed 301 gambling brands, found that around one-in-three Canadian bettors use offshore operators rather than regulated sites to gamble.
The study also found a significant difference in spending between the two groups, with offshore players collectively spending almost C$230 million more than those using regulated operators.
Those figures highlight the scope of the challenge facing provincial regulators. While Ontario has developed one of the world’s more competitive regulated iGaming markets, offshore sites continue to attract a sizable chunk of Canadian players.
The question remains unanswered as to why so many bettors are still choosing to play outside the regulated system, even as licensed online casinos become more widely available.
There are several reasons why offshore gambling sites continue to attract Canadian players.
For some players, the wider choice of casino games, betting markets and payment methods available can be enticing, but interestingly, offshore operators may also offer promotions or betting options that are not available through licensed sites.
Familiarity also plays a part; Canadians who were already using offshore platforms before the expansion of regulated markets may see little reason to change where they gamble, particularly if they are comfortable with the service, and especially if they’re winning regularly.
The growth of regulated gambling has therefore not eliminated demand for offshore options, but it has created a market where licensed and unregulated operators continue to compete for the same players.
Alberta’s newer private iGaming market could provide another test of whether greater legal choice can persuade more Canadians to migrate to regulated platforms.
Ontario has shown what can happen when regulators ensure a competitive market for online gambling. Since launching its regulated iGaming market in 2022, the province has attracted a growing number of licensed operators and gaming sites.
The market now has 48 regulated operators running 83 gaming websites, giving players plenty of choice whilst keeping within Ontario’s regulatory framework.
That competitive approach has helped make Ontario Canada’s most established regulated provincial gambling market. It also offers an interesting counterpoint to the continued popularity of offshore sites.
But can Alberta build on that model? With its own competitive iGaming market opening up, the province is showing early promise of changing the picture for legalised gambling across Canada.
Alberta’s July launch of its regulated iGaming market has added another important piece to Canada’s gambling landscape.
It made Alberta only the second province to offer a competitive regulated online gaming market, giving players another regulated option beyond traditional provincial gambling outlets.
For regulators, however, the key question will be whether that added choice can improve channelisation by encouraging more players to use licensed sites rather than offshore or “grey market” alternatives.
The early performance of Alberta’s market could therefore provide useful evidence on whether greater access to regulated operators can help shift player activity back in the favour of Canada’s licensed gambling sphere.
The challenge for provincial regulators is finding the right balance. Regulated markets need enough licensed providers, choice and competitive products to give players a genuine reason to stay within the legal sector.
But attracting more operators cannot come at the expense of consumer protection. Strong safeguards, responsible gaming measures and effective oversight are at the very core of any regulated market.
That balance could ultimately determine whether Canada can bring more players back from offshore sites.
On the fence about whether to stay with your existing online casinos and betting providers. Perhaps it's time to switch to legal Canadian gambling operators? At OnlineCasinoReports we bring you the latest gambling news, legislation, and promotions, allowing you to make an informed decision about where to gamble online.
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