Few industries have seen such a rapid rise as online gambling. By 2025, Canada's online gambling sector is projected to generate $5.55 billion in revenue. A staggering $3.46 billion of that money is coming solely from online casinos.
Canadian startups like Clio and Cohere have made global headlines with their soaring valuations. However, their annual revenues still pale in comparison to what online casinos are bringing in. For example, Clio, despite a C$3 billion valuation, is estimated to bring in around $200 million annually. Cohere, currently valued at $5.5 billion, is reportedly generating less, somewhere around $35 million.
Regulation changes
Part of what’s fueling this growth is a recent regulatory shift that opened the doors to private online gaming operators. With new frameworks introduced by iGaming Ontario, dozens of licensed platforms have entered the market.
Online platforms that offer access to a casino online can have easy-to-use interfaces, mobile compatibility and a unique library of game types. T
A revenue perspective
Let’s put this into perspective. Canada’s tech company, Clio, may have captured the attention of investors but its $200 million annual revenue may place it below some casino platforms. AI startup Cohere, with a valuation of about $5 billion, reportedly brings in less than $50 million per year.
Larger players like Thomson Reuters, one of Canada’s most established tech brands, report over $7 billion in annual revenue.
Economic footprint
On the fiscal front, in 2024, online casinos were anticipated to contribute nearly $1.65 billion in taxes annually. This includes C$450 million in federal and C$1.2 billion in provincial taxes.
Industries like solar energy and skilled trades, though unrelated, are benefiting from this tech-fueled growth. For instance, new solar certificate programs in North Vancouver are a sign of how digital and technical sectors are creating ripple effects throughout the Canadian economy.
The differences
Online gambling platforms have grown in recent years, driven by accessibility and convenience. These platforms are available around the clock and offer digital gaming experiences, including live dealer events that replicate real-world casinos.
Many operators have focused on mobile integration, allowing users to access these platforms on iOS and Android devices. While these features have broadened the appeal of online gambling, they also highlight the need for measures to support responsible gambling and address associated risks.
Looking ahead
The future of online gambling platforms will likely involve continued consolidation and change, alongside evolving regulation and increasing tax revenues for Canadian provinces.
While various sectors contribute to Canada’s digital economy, online gambling has become a significant source of revenue. At the same time, companies in fields such as legal technology and artificial intelligence continue to develop innovations within their specialized areas.
For policymakers, industry observers, and others interested in Canada’s digital economy, these trends highlight the shifting landscape of economic activity and regulatory priorities.
DISCLAIMER: The information presented on this page/site is intended for entertainment purposes only. Please be aware that gambling entails inherent risks, and it's crucial to acknowledge this when utilizing online gambling platforms.
This sponsored content has been paid for by our sponsor and does not reflect the reviews and recommendations made by North Shore News staff.
