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Insights into the Gambling Industry in Canada: Market Analysis and Gambling Problem Risks

As access to gambling options, especially online, continues to rise, the variety of gambling activities is enhancing and diversifying . According to Canadian gambling statistics, revenue from online gaming has incrementally increased in recent years, coinciding with growing worries about the negative effects of gambling .

These trends provoke various inquiries. What drives gambling-related problems? Is there a link between addictive gambling habits, the proliferation of online gaming options, and marketing efforts? This article investigates gambling statistics to address these queries.

Key Findings

  • Current developments indicate that online gambling is progressively surpassing traditional, offline forms, although offline gambling still remains the top choice for many Canadians.
  • Canada's overall gambling market is the fourth largest globally, while its online segment ranks fifth overall.
  • Individuals' gambling expenditures are influenced by their income levels.
  • In Canada, lotteries are the most favored gambling activity.
  • Among younger demographics, slot machines are the leading choice at online casinos, while older individuals lean towards lotteries.
  • Gambling participation rates are higher among men and those from affluent households.
  • Conversely, individuals from lower-income families face a greater risk of developing gambling dependence.
  • A majority of Canadians feel that there should be stricter regulations on gambling advertisements.

An Overview of the Canadian Gambling Sector

We explored the gambling scene in Canada to provide an impartial look at its present condition . This study aimed to ascertain if there is a connection between gambling-related issues and the increasing availability of gambling options across Canada.

Market size

While online casinos in Canada Despite growth in overall gambling, in-person games still have a stronger appeal . The latest figures reveal that in 2023, Canada earned C$15.44 billion from gambling activities, with the online segment accounting for C$4.94 billion. The total revenue for the gambling sector fell, particularly in offline operations, largely due to the pandemic impacts observed since 2019.

Revenue from Canada's gambling industry from 2018 to 2023 (Source: Statista)

Revenue from Canada's gambling industry from 2018 to 2023 (derived from Statista)

While the initial downturn resulted from the temporary closure of physical gaming venues, recent trends suggest a noticeable shift towards online gaming preferences in Canada.

Although online gambling revenue has been steadily increasing, its share of the market has taken a toll on traditional gambling operations in recent years.

A breakdown of revenue from online versus offline gambling

A breakdown of revenue from online versus offline gambling (data from Statista)

The shift in market share between online and offline gambling can be attributed to the following reasons:

  • Some establishments permanently shuttered during the pandemic, diminishing the offline gambling market's share.
  • An increasing number of gamblers are gravitating towards digital gaming instead.
  • Overall gambling revenue is experiencing a downward trend as Canadians opt for alternative recreational activities over gambling.

Data shows that by 2024, the Canadian online gambling market will rank as one of the top five globally in terms of revenue, with Canada maintaining its position as the fifth largest. For the overall gambling market, Canada stood as the fourth largest in the world in 2022.

Growth of Online Gambling in Canada

The online gambling sector is witnessing significant growth, as evidenced by a consistent rise in annual revenue. In 2023, the revenue had tripled since 2017 and is projected to quadruple by 2024, reaching C$5.74 billion.

Gambling revenue by year

Annual gambling revenue statistics (source: Statista)

Estimations suggest that by 2029, the market volume could reach C$7.82 billion, indicating a predicted annual growth rate of 6.39% .

Revenue from online lotteries is also on the uptick, with an anticipated growth of US$0.26 billion between 2023 and 2029. However, these games still tend to be more favored in offline formats, making the growth less pronounced compared to that of sports betting or casino gaming.

A comparison of revenue from online and offline lotteries

A comparison of revenue from online and offline lotteries (data from Statista)

By way of illustration, traditional lottery ticket sales in Canada hit C$9.33 billion in 2021, in contrast to online lottery revenues totaling US$0.44 billion. The offline market dominates online sales with 95.5% of the total revenue.

The Prevalence of Online Gambling Among Canadians

Recent statistics indicate that in 2023, there were 30.3 million users engaging in various forms of online gambling. Following the legalization of sports betting, sports bettors now constitute the majority of online gambling participants.

Online gamblers in 2023

Online gambling users in 2023 (source: Statista)

The legalization of single-event sports betting is a relatively new phenomenon in the gambling landscape but has already instigated a significant change. It represents a critical turning point in gambling behavior over the years, which warrants a deeper exploration.

Online Gambling User Changes

The overall count of online gamblers is on a continuous upward trajectory. The legalization of single-event sports betting in Canada in 2021 caused a notable surge in new participants. By 2023, the number of sports bettors exceeded that of online casino players, and this trend is expected to persist into the foreseeable future.

Changes in user engagement across various gambling activities

Changes in user engagement across various gambling activities (data from Statista)

Despite the fact that in 2023, 3.1 million more individuals participated in sports betting compared to casino games, the revenue from online casinos still represented 2.5 times that of sports betting.

Market Insights from Statista forecast a continued surge in the number of sports bettors, growing by a few million users each year, with a gradual deceleration expected by 2025. Participation in online lotteries has also seen a modest annual rise, though it remains considerably lower than that of sports betting or online casino games.

Canadian Gambling Habits

With statistics indicating that 64.5% of Canadians aged 15 or older gambled at least once in 2018, it can be surmised that a significant portion of Canadians are either enjoyed or have an interest in gambling-related activities. Given that the country has a relatively high disposable income, Canadians are quite capable of allocating funds towards leisure activities like gambling .

Additionally, various studies draw connections between gambling habits and income levels. To provide a more in-depth perspective on gambling patterns in Canada, we examined the amount spent on gambling activities and identified the most popular gambling forms.

How Much is Spent on Gambling

The data reveals that Canadians, on average, spent C$173 annually on gambling in 2021, suggesting a relationship between gambling expenditures and households' financial situations.

The correlation between income level and average spending on gambling

The correlation between income level and average spending on gambling (data from Statistics Canada)

Statistics from 2019 indicate that low-income households typically spent around C$111 on gambling, while high-income households averaged C$256. This suggests that after covering essential living costs such as rent, mortgages, and utilities, higher-income households have more disposable income for gambling .

It's crucial to acknowledge that there are limitations to this data, as many tend to underreport their gambling expenditures in surveys. Research by the Lottery Corporation has revealed that purchases of government lottery tickets are underestimated by over 50%.

Gender Disparities in Gambling Participation

Traditionally, gambling has been viewed as a male-dominated sphere, yet with growing social acceptance, the gender divide is diminishing. Various stakeholders are becoming increasingly aware of the distinct habits and preferences exhibited by different genders.

The Gender Breakdown of Gamblers in Canada

The Gender Breakdown of Gamblers in Canada (data from Statistics Canada)

According to Statistics Canada, men continue to have a higher likelihood of gambling than women, with 68.8% of men and 60.4% of women reporting having gambled in 2018.

This difference persists across:

  • Participation also varies by age group (with those aged 45-65 showing the highest percentages at 76% for men and 68% for women);
  • It also varies by marital status (with 73% of married or cohabiting individuals and 61% of their female counterparts gambling);
  • Household income shows disparities, with the top 20% of earners consisting of 71% men and 67% women;
  • Other factors include sexual orientation, racial background, indigenous identity, and immigration status.

Interestingly, in the lowest income bracket, men and women demonstrate equal participation rates in gambling over the past year.

In one area, women outpace men— there is a higher prevalence of mobile gambling among female gamblers , standing at 55%.

The Majority of Canadians Purchase Lottery or Raffle Tickets

A report from Statistics Canada in 2018 revealed that out of the 64% of Canadians who engaged in gambling at least once that year, 55% did so by buying a lottery or raffle ticket . The affordability of these tickets makes them appealing to different age demographics. The game's simplicity and enormous potential prize pools, sometimes reaching millions, likely contribute to its popularity.

Examining the Most Preferred Gambling Activities Among Canadians

In Canada, lotteries reign supreme. Among the leading gambling activities are lottery and raffle tickets (51.8%), followed by instant lotteries (scratch tickets) and instant online games (33%). Sequentially, activities like electronic gaming machines, casino table games, sports betting, bingo, and others follow in popularity.

The most common forms of gambling practiced in Canada

Leading gambling activities in Canada (data sourced from Statistics Canada)

According to the quick survey conducted by the CCHS regarding gambling habits, the three most frequently participated forms of gambling are:

  • In Canada, 24.4% of individuals play lotteries less than once a month, while 27.4% engage in them at least once a month;
  • Instant win lotteries and online instant games are engaged in by 19.8% of Canadians less than once a month and by 13.2% one or more times a month;
  • Electronic gambling machines (both in-person and digital formats) are less frequently played by 9.8% of gamblers, whereas at least 2.8% engage at least monthly.

The data indicates that even though a considerable number of Canadians participate in gambling, the majority do so on an infrequent basis . It is notable across all forms of gambling that most Canadians partake in these activities less than once a month.

In relation to online gaming, the audit by the CBCA highlighted variations in gaming preferences across various age segments.

Comparing online gambling preferences across different age demographics

Online gambling preferences by age group (insights from Newswire)

Younger adults typically show a tendency towards slot games, while preferences for bingo and lotteries tend to increase with age, indicating that older players are more drawn to these types of games.

  • Individuals aged 19 to 44 primarily enjoy slot machines;
  • Scratch-off tickets are favored most by those aged between 45 and 64;
  • For players aged 55 and older, lotteries are the preferred option, which also applies to bingo;
  • Both roulette and blackjack see significantly lower participation across all age groups.

Examining the Dynamics of Problem Gambling and Its Associated Risks

A study from the year 2000, during the early days of online gambling, indicated that there was significant discourse surrounding online gambling at that time, with concerns that it could foster addiction. This stems from the ease of accessing casino games from home, especially affecting younger players who are adept with internet technology. At that time, the prevalence of gambling-related issues among Canadians was estimated to be around 3-5%.

A more recent report dating back to 2018 indicated that 3.4% of Canadians (about 636,000 individuals) were identified as being at a low risk for gambling-related harms. In contrast, 1.6% (about 304,000 individuals) experienced moderate to severe gambling risks. Notably, 64.5% of Canadians reported having gambled at least once over the past year. This implies that only a minor fraction of Canadians confront severe gambling problems.

By comparing data from the 2000 study with more recent findings, we sought to ascertain whether the convenience and accessibility of online gambling have influenced the rates of gambling-related harms. Our analysis showed that the problematic gambling prevalence from 2000 to 2018 remained unchanged , staying consistent at around 5%.

Problem gamblers in Canada

Problem gamblers in Canada (information sourced from Statistics Canada)

A further study released in 2021 in the Canadian Journal of Psychiatry corroborates our earlier observations, indicating a reduction in the number of problem gamblers and suggesting improvements in the overall scenario.

Trends in Gambling Behavior Over Time

Trends in gambling behavior over the years (data from National Library of Medicine)

The data reveals that between 2002 and 2018, there was a 10.4% reduction in the number of individuals who gamble . While the rate of non-problem gamblers also decreased, this aligns with the overall downturn in gambling participation in the nation.

The critical statistics to focus on are the percentages of at-risk gamblers and problem gamblers – both have seen declines of 1.4% and 0.7%, respectively. The most recent data suggests that issues related to gambling in Canada have become somewhat less common. Nonetheless, further research will be necessary to gain a clearer understanding of the current landscape, as the latest study analyzing this issue was completed six years ago.

Individuals from Low-Income Backgrounds Are More Susceptible to Gambling Issues

The occurrence of gambling addiction is closely tied to socioeconomic factors . A smaller fraction of Canadians with lower economic status engage in gambling when compared to their higher-income counterparts. Nevertheless, individuals from low-income backgrounds are at a heightened risk of developing compulsive gambling behaviors.

According to a 2018 Canadian Community Health Survey, those from lower-income households are less inclined to gamble than those from wealthier households, yet they experience a greater likelihood of gambling-related challenges.

Comparing High-Income and Low-Income Gamblers

High-income versus low-income gamblers (data from Statistics Canada)

In 2018, a reported 71.5% of Canadians from affluent households participated in gambling, with only 1.1% classified as being at moderate to severe risk for problem gambling. In stark contrast, among lower-income households, 2.7% of the 53.8% who gambled faced moderate to severe gambling risks. This statistic signifies that individuals from low-income backgrounds are nearly twice as prone to becoming addicted to gambling.

The association between gambling issues and lower income levels may arise from a perception of gambling as a means to enhance financial stability. Additionally, those with higher incomes are generally more capable of managing potential losses from gambling, making them less impacted overall. It is clear that compulsive gambling stems from various factors, indicating that other elements play a significant role.

Identifying Risk Factors Linked to Gambling Issues in Canada

Identifying risk factors related to gambling issues in Canada (data from Statistics Canada)

Several other elements correlate with gambling issues, including:

  • Being single or divorced often results in a lack of social support, making one more susceptible to excessive gambling behaviors;
  • Unemployment can result in gambling being seen as an effective coping mechanism;
  • Daily smoking and heavy drinking are recognized as having common addiction triggers that intersect with gambling, impacting the brain's neurobiology;
  • Poor mental health can diminish the barriers that prevent compulsive gambling;
  • The prevalence of gambling-related challenges is notably higher among males compared to females;
  • Individuals who participate in multiple gambling forms are more likely to develop compulsive gambling behaviors;
  • Indigenous communities are three times more likely to experience moderate to severe gambling risks, which can be linked to socioeconomic factors.

Our conclusion suggests that the convergence of specific risk factors may contribute to gambling problems among vulnerable groups. Fortunately, Canadians experience a relatively stable social and economic environment, leading to a smaller number of problem gamblers. However, emerging trends and changes in the gambling sector could introduce new challenges that influence the escalation of gambling-related harms.

Does Advertising Contribute to Gambling Issues?

The expansion of the online gaming sector has resulted in a notable increase in gambling advertisements , especially online. These promotions have not only proliferated but also frequently feature endorsements from influencers and celebrities. Gambling companies are keen to leverage these marketing channels, prompting concerns within the Canadian populace.

The situation intensified with the launch of the Ontario iGaming market in April 2022, which spurred a rapid influx of new Ontario online casinos , leading to a significant rise in advertising volume. In response, Ontario has implemented measures such as restricting the use of celebrities, athletes, and influencers in gambling promotions starting February 2024.

An Ipsos survey conducted in 2022 revealed that around half of Canada's population perceives the amount of gambling advertising as excessive . The majority of Canadians concur that measures should be taken to limit such advertisements.

Survey on gambling advertising

Survey findings on gambling advertising (data from Ipsos)

Based on the survey responses, it appears that most Canadians maintain a moderate stance concerning gambling advertising , as only roughly 20% of respondents strongly affirmed the excessive nature of these ads and the need for curbs on their frequency.

The primary concern surrounding gambling advertising is its potential to attract children and young adults to gambling activities at an early age. A review by The Campaign to Ban Ads for Gambling has highlighted a connection between exposure to gambling ads and a more favorable perception of gambling, leading to increased gambling engagement. Moreover, evidence suggests that the youth demographic and those who are already vulnerable to gambling addiction are particularly susceptible to influence.

Conclusion

Despite the increase of online gambling options in Canada, there seems to be no correlation indicating an increase in problem gambling rates. This has led to the conclusion that there is no direct connection between increased access to online casinos and sports betting platforms and the rise of gambling addiction.

In truth, the complexities of gambling-related issues are multifaceted. Compulsive gambling can manifest across different societal sectors. However, the data demonstrates that certain pre-existing factors might affect specific demographics more profoundly. Most notably, low-income households exhibit the highest vulnerability to gambling problems.

Although definitive research linking gambling-related challenges and advertisements has not yet been established, it is currently believed that ads could negatively impact the most vulnerable societal groups – such as youth and those predisposed to gambling issues.

Lewis Constable
Expert Writer
Staffordshire University
Single Honours in Journalism. Proficient in conveying stories succinctly and accurately. Concentrates on ethical gambling marketing with a thorough understanding of regulations across various regions.
Expert in:
  • Latest Gambling News and Trends
  • iGaming Content
Fact checked by Chief Editor:
Gerda Grinova

References

  1. What constitutes excessive? Almost half of Canadians believe that gambling advertisements have become excessive.
  2. The Effects of Gambling Advertising by The Campaign to Ban Ads for Gambling
  3. The most common gambling activities in Canada
  4. The most common gambling activities in Canada (according to Statistics Canada)
  5. The rapid response survey by CCHS on gambling indicated that the three most engaging forms of gambling for Canadians are as follows:
  6. Approximately 24.4% of Canadians participate in lotteries less than once a month, while 27.4% play them at least once a month.
  7. The Ethics of Gambling Advertising
  8. Online Gambling: Canada by Statista
  9. Instant win lotteries and online games see participation rates of 19.8% for less than monthly players, and 13.2% for those who play once or more each month.
  10. (Both in-person and online gambling) shows that 9.8% of gamblers play less frequently than once a month, while 2.8% engage at least once a month.
  11. The data indicates that a significant portion of the Canadian population partakes in gambling, but it's noteworthy that the majority do so only sporadically . This trend is consistently observed across all gambling formats, where most individuals participate less than monthly.
  12. Looking specifically at online gaming choices, an analysis by CBCA highlighted variations in game preferences across different age demographics.
  13. Preferences for online gambling among various age demographics
  14. Preferences for online gambling across different age groups (data from Newswire)
  15. Generally, younger adults show a strong preference for slot machines, whereas bingo and lottery games attract older players, as evidenced by the audit results.
  16. Slot machines are particularly favored by individuals aged 19 to 44;
  17. Scratch tickets emerge as the most popular option for gamblers who are between 45 and 64 years old;
  18. Global Gambling Statistics & Trends 2024

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