How US Online Gambling Industry Influenced the Canadian Market

By Graziella Calleja

February 23rd, 2023



The American gambling industry has has considerable influence on the Canadian market.

As the US online gambling industry continues to expand, many in Canada are left wondering how it will impact their gambling practices.

You may be interested to know that the US online gambling industry has already had a profound influence on Canadian players and businesses.

In this blog, we’ll explore exactly how this is happening and what it means for Canadian gamblers.

Impact of US Online Gambling Industry on Canadian Market

The US online gambling industry is one of the biggest industries in the world. It is estimated to be worth around $40 billion and counting, with about 56 million players playing different casino games or betting on sports. Since the US has many states with legal online gambling, it is natural that this industry would have considerable influence on other countries, including Canada.

It all starts with how they are connected geographically: for instance, Ontario shares a border with two US states that have legalized online gambling in their jurisdiction (Michigan and New York). This makes it easier for residents of both countries to access games legally, as there are more avenues which they can possibly use when trying to play casino games or bet on sports.

The influence of the US extends further beyond just providing easy access—recent surveys and studies have shown that up to 16-17% of Canadian gamblers now play at offshore sites approved by US jurisdictions. This means that Canadians have become more comfortable with playing at offshore casinos since they trust the regulated ones approved by US gambling authorities—such as Nevada and New Jersey—over their own country’s gaming laws.

This increases competition among current and new Canadian online casinos and sportsbooks in order for them to remain competitive in an increasingly crowded market. As such, Canadians can benefit from improved bonuses or promotions offered by these operators so that they can stay ahead of competition from American-regulated sites entertaining players from neighbouring countries like Canada.

The long Canada USA border has tens of thousands crossing the border to gamble in both countries.

Canadian online gambling regulation has changed significantly over recent years due to increased pressure from not just its neighbour – but also due to safety standards set by operators based in the United States that follow strict gaming regulations, which ensure better financial protection for customers who use their services. Therefore, the players who take part in international gaming markets are now assured better protection than before, thanks to these regulations, which continue to evolve as technology advances over time.

Factors Driving the Growth of US Online Gambling Industry

The US online gambling industry is growing rapidly due to increasing numbers of people logging in to participate in real-money games, such as sports betting and casino gaming. The industry is also benefiting from increased legalization across numerous states, federal efforts to remove barriers for Indian tribes and operators to enter the market, relaxed regulations for cryptocurrencies and other payment options, as well as technological advances like virtual reality.

With the growth of the US online gambling industry comes an opportunity for Canadian operators to expand their presence in this lucrative market. Some operators will likely be using cross-border collaboration with US operators and macroeconomic forces driving expansion to enhance their market share presence.

Furthermore, Canadian operators can use cutting-edge technologies and strategic marketing techniques, such as search engine optimization for US markets, to drive traffic and grow their businesses. By leveraging their existing customer bases, brand recognition and networks in Canada, they can replicate their success story south of the border. Additionally, investments by major casinos into mobile apps add a further layer of convenience and appeal which could be adopted by online gamblers in both countries, benefiting the overall market size growth further enhanced by currency exchange advantages between Canada & US$.

Strategies Adopted by US Online Gambling Industry to Enter Canadian Market

The US online gambling industry has multiplied over the last few years, and the Canadian market is an increasingly attractive one for these operators. To get around the laws in certain provinces and give their players access to legal gaming websites, US gambling companies have adopted a variety of strategies.

One of the most common is partnering with provincial government agencies such as the Ontario Lottery and Gaming Corporation (OLG) to offer online services through their platforms. This strategy allows companies to legitimately offer real-money casino games while complying with all provincial laws in Canada. Such partnerships have taken off in Ontario, allowing US gambling companies such as 888 Casino and PokerStars to offer their services in the province under OLG’s platform.

The Federation of Sovereign Indigenous Nations and the province signed an amendment to the Gaming Framework Agreement.

In addition, US-based gambling operators have also sought to partner with First Nations bands who held legal rights over land and gaming operations on them. This strategy allowed them access to markets that were otherwise closed off due to restrictions in certain provinces, such as Quebec and British Columbia which prohibited real money gaming sites for all but government-backed corporations. Striking deals with First Nations tribes and providing customers access through these agreements allowed companies a much more significant foothold into Canadian markets than they otherwise would’ve been able to get.

Finally, many US companies have invested heavily into advertising campaigns aimed at Canadian players both in local media outlets (print media, TV commercials) as well as digital channels (online banners on websites, paid search). This cutting-edge strategy helps build awareness and recognition of online casinos among customers who may not be aware that such services are available at all or don’t know if they are available legally or not. As a result of this push by betting sites for customers south of Canada’s border, most major cities now have numerous ads for offshore gaming destinations vying for attention from Canadians seeking an alternative from domestic offerings or from abroad competition looking to lure Canadian clientele away from local sites.


In conclusion, the US online gambling industry has had a significant and lasting influence on the Canadian market. Over the years, American developers have brought both technological advances and marketing expertise to Canada — giving Canadian players access to a greater variety of games, more sophisticated platforms and bigger bonuses.

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