The gambling industry is growing at an astronomical pace worldwide. Closely associated with the emergence of happy emotions, the industry has seen a wave of positive sentiments since the pandemic.
The Canadian gambling industry is one of the most prominent ones out there. As of 2022, the gambling industry was worth a conglomerate amount of $12 billion. Projections indicated that it was set to hit $50 billion by 2032. These figures came in hindsight of the C-128 bill, which legalized betting on single sports events.
But the impact has been more positive than was projected back in 2022. As of today, the market is growing at a steady pace of 8.13% CAGR. This translates to an expected revenue mark of $90.22 billion by 2027. Furthermore, a zero tax charge for gambling winnings has also been pivotal in creating positive consumer sentiments across the nation. Let’s dive a bit deeper than figures to understand why the gambling industry in Canada harbors immense potential.
Overview of the Industry in 2023
The gambling industry as of 2023, amasses a total revenue of $16 billion (an increase of 3.46 billion or 28.88% over 2021) with 75% of all Canadians agreeing to participate in some form of gambling, whether online or offline. This roughly translates to a total of more than 25 million Canadians participating in gambling activity each year.
Further, the numbers put the current Canadian gambling market in the 8th position globally. The Gaming Association in Canada reports that the industry is solely responsible for 135,000 jobs in the country. Hence, the industry is robust and booming.
Historical Trends of Gambling Spending and Future Outlook
A study conducted in 2020, during the pandemic indicated that approximately only 3% of Canadians spent over $100 a month on gambling. Apart from that, 43% of Canadians stated spending anywhere between $1 and $20. An additional 14% indicated that they spent between $20.01 and $100 per month on gambling activities. Thus, the national average for spending came out to $6.75.
As we mentioned before, the percentage of the population indulging in the industry has seen a stark rise since 2020. Alongside this, the population of the country has also grown since then by roughly 900 thousand people. In retrospect, the industry has expanded from a total of 22 million in 2020 to roughly 28 million people today. It indicates greater levels of spending on gambling activities nationwide.
The Impact of Online Gambling
With the legalization of gambling across several provinces, the Canadian market has also seen a stark rise in online gambling. Approximately, 19.3 million Canadians prefer online gambling.
Combined with that, the Canadian online gambling revenue had circled down to roughly $4 billion a year in 2022. The major reasons for the same are:
- Players experience greater convenience when it comes to online gambling due to improved accessibility;
- Online casino gambling is instant, engaging, and far more interactive when it comes to paying with your friends;
- The popularity of online gambling can also be closely associated with an increasing trend of social media marketing by casino operators;
Hence, as of 2023, online gambling is here to stay. The bias of the industry is shifting towards the same. With the world going through heavy digitalization and around-the-clock connectivity, developments indicate online gambling will become the new norm.
Another notable fact also remains that a large chunk of Canada’s population prefers to spend less than $20 a month. It automatically makes online gambling a more lucrative opportunity for them.
How is the Gambling Industry Set for the Future?
The current gambling market trends in Canada show that the market is set to shape itself up as one of the biggest ones in the upcoming years. In combination with the entertainment industry and esports market, online gambling will keep experiencing favorable conditions.
The focus on gambling websites and applications will be key to its growth. With each passing day, people keep turning to gambling as a form of stress relief, a fun activity with friends and family, and a regular hobby. With the revenue set to skyrocket in the upcoming years, the industry is set to see new variations, extensions, and innovation.
Last Updated: February 24, 2023