Exploring New Markets: Growth Beyond Ontario's Borders
Ontario is still the only province in Canada with a fully open online gambling market. iGaming Ontario (iGO) issues licences to private-sector sportsbooks, online casinos, and other igaming operators.
The only legal online casino games and sports betting sites in other provinces are state-owned platforms. For example, Loto-Québec’s Mise-o-jeu and Espace Jeux platforms are legal to place bets on sports and play casino games in Québec.
For years experts have predicted that other provinces will follow Ontario’s lead and adopt the iGO model. This is the year it might finally happen. Here’s why.
Ontario's iGaming Model Secures Legal Green Light - What's Next?
In terms of playing legally, you must be 19 years old or older to play casino games in British Columbia, Ontario, and Nova Scotia. Every other province allows gambling when you are 18 years of age.
We expect two major changes in 2025. One, that the federal government will enact new laws limiting gambling advertising. Secondly, we predict other provinces will open their markets to private-sector casinos and sportsbooks.
One of the biggest reasons other provinces held off copying Ontario was a legal challenge from the Mohawk Council of Kahnawà:ke. In May, the Ontario Superior Court delivered a ruling in Mohawk Council of Kahnawà:ke vs. iGaming Ontario, saying that “Ontario, through (iGaming Ontario), is conducting and managing the igaming scheme.”
Basically, the Ontario Superior Court dismissed the Mohawk Council of Kahnawà:ke’s main argument and found that Ontario’s model is legal.
The Mohawk Council of Kahnawà:ke is a major player in Canada’s gambling market. Now that provinces have support from the courts that iGO’s model is sound, they are a lot more likely to change their gambling laws in 2025.
Steps falling into place
The impact of the Mohawk Council of Kahnawà:ke v. iGaming Ontario case is already being felt. In December 2024, Alberta passed the Red Tape Reduction Statutes Amendment Act (Bill 16), which removes a lot of the barriers to changing the province’s gambling laws.
Dale Nally, the new Minister of Service Alberta and Red Tape Reduction, revealed after Bill 16 was signed that Alberta lawmakers are working on creating an open igaming market.
Private sector companies are doing the same. Penn Entertainment CEO Jay Snowden explained in August 2024 that he thinks Alberta could open its market in early 2025 and that Alberta could be “a top three or four market” for Penn’s theScore Bet sports betting and casino brand.
Huge revenue potential
The number one reason we are bullish that other provinces will adopt an Ontario-like model is because it’s very profitable. Both revenue and total wagers increased year-on-year in 2024 compared to 2023.
iGO reported that the 50+ Ontario online casinos and sports betting sites earned a total gaming revenue of $738 million in 2024. The igaming operators also handled over $18.7 billion in wagers.
Because of their smaller populations, it’s unlikely other provinces bring in this much revenue, but it’s clear that they are currently missing out on a huge source of tax revenue.
New Advertising Incoming for Online Gambling in Canada
As iGaming grows to other provinces in Canada, there will be more pressure on lawmakers to enact responsible gambling legislation. Parliament is very aware of this and has already started working on new regulations.
Bill S-269 is the strongest one currently being debated. If passed, the federal government will establish a national framework to regulate sports betting advertising and to support responsible gambling efforts across the country.
Similar laws curbing sports betting advertising have already been passed at the local level in Ontario and in other countries.
Peer-to-peer market to expand
One of the drawbacks to Ontario’s limited market right now is that peer-to-peer players have a limited pool of opponents. This means fewer games and smaller jackpots.
Ontario Premier Doug Ford issued an order-in-council in February asking a court to clarify whether legally under online casino laws in Canada, if casino sites could legally host games with players from outside of Canada.
The Toronto-based Court of Appeal for Ontario agreed to hear this issue. Their decision could come sometime in 2025. If the court holds that international players can play with Canadian ones, it could be one of the biggest gambling regulation updates in 2025.
The good news is that FanDuel is legal in Ontario. As a very popular betting site, it will almost definitely be one of the first to receive a new license to operate in one of these provinces (we reckon, it will be Alberta).
There are over 50 legal online casinos in Ontario who each have licenses from iGaming Ontario. Other provinces offer legal online casino games through their lottery platforms.
Don't Miss Out: My Take on Canada's iGaming Regulations
Whether its other provinces opening their doors to outside operators or peer-to-peer games gaining new players, legal iGaming within Canada is only going to grow in 2025. With that being said, it won’t be uncontrolled growth.
Both national and federal lawmakers have been cautious about growing the market too quickly. We expect things to change, but it won’t be all at once.
Before you gamble online, always check your province’s gambling laws and only choose casinos that comply with Canadian regulations.
