Canada’s regulated iGaming market is expanding, but the August 2026 research shows that the offshore market remains a major force.
Canada’s online gambling market is growing rapidly, but new August 2026 research suggests that a significant share of Canadian gambling activity is still taking place outside the country’s regulated provincial markets.
Research published in August found that 33.53% of Canadian online gamblers use offshore gambling sites, compared with 66.47% who use licensed platforms.
However, the numbers become more striking when wagering activity is considered.
Despite representing only around one-third of players, offshore operators handled an estimated C$712 million in Canadian wagers, compared with approximately C$484 million on licensed platforms.
The findings raise fresh questions about how effectively Canada’s fragmented iGaming system is keeping players within regulated markets.
Offshore Gambling Accounts for One-Third of Canadian Players
According to August 2026 figures from Blask cited in the research, almost two-thirds of Canadian online gamblers now use licensed gambling sites.
The remaining 33.53% are estimated to use offshore platforms.
At first glance, the licensed market appears to have the advantage.
But the wagering figures tell a different story.
Offshore sites handled approximately C$712 million in wagers, while licensed operators accounted for around C$484 million.
That means the smaller offshore player group is generating considerably more wagering volume than the larger licensed group.
For Canada’s regulated iGaming industry, this could be one of the most important trends to watch as provinces continue developing their online gambling frameworks.
Stake Emerges as Canada’s Most Valuable Gambling Brand
The research also highlights the growing influence of offshore operators.
An analysis of 301 gambling brands active in Canada ranked Stake as the country’s most valuable online gambling brand, with an estimated value of approximately C$2.50 billion.
Stake does not hold a licence to operate in any Canadian province.
Four offshore operators also appeared among Canada’s top 10 gambling brands, according to the research.
The findings demonstrate that being outside Canada’s regulated framework does not necessarily prevent an operator from building significant brand awareness among Canadian players.
For regulated operators, that presents a difficult competitive challenge.
Ontario Shows a Very Different Picture
Ontario continues to stand apart from much of the rest of Canada.
The province’s regulated private-sector iGaming market has achieved a much higher level of channelisation than other Canadian jurisdictions.
The August research cites approximately 91% of online gambling activity being directed toward licensed sites in Ontario, making the province one of the strongest examples of regulated market channelisation in Canada.
Ontario’s model is particularly interesting because the province allows multiple private-sector operators to compete within a regulated framework.
That gives players a wider choice of licensed casino and sportsbook brands than the monopoly-style systems used in many other provinces.
The result is a significant contrast between Ontario and other parts of the country.
Alberta Faces a Different Challenge
Alberta’s newly launched regulated iGaming market could become one of the most important tests of whether Canada’s regulatory approach can reduce offshore gambling.
The province officially opened its regulated private iGaming market on July 13, 2026, creating a new competitive market for licensed operators.
However, Blask estimates that offshore brands controlled approximately 89.2% of Alberta’s iGaming CEB during the 12 months before the regulated market opened, compared with 10.8% for PlayAlberta, which was the province’s sole licensed operator at the time.
That makes Alberta particularly important to watch over the coming months.
The question is no longer simply whether Alberta can establish a regulated market.
It is whether the new market can persuade players who are already comfortable using offshore platforms to switch to licensed alternatives.
Why Are Players Choosing Offshore Sites?
The research points toward several possible reasons.
One of the biggest issues is product availability.
Regulated operators must comply with provincial rules covering payments, gambling products, advertising and player protection.
Offshore platforms can operate outside those provincial restrictions and may offer products or features that regulated operators cannot.
Cryptocurrency is one example.
Ontario’s regulated framework requires player balances to be held in Canadian dollars through authorised financial services providers, meaning regulated operators cannot simply replicate the crypto-based gambling experience offered by some offshore brands.
Prediction markets are another emerging issue.
The rapid development of event-based prediction products has created a category that does not fit neatly into Canada’s existing provincial gambling frameworks.
Offshore operators have been able to move quickly into these emerging products while regulators and licensed operators work within existing rules.
Prediction Markets Add Another Layer to the Debate
The issue became even more relevant in August.
Canadian financial regulators said they would not allow sports prediction markets under the existing regulatory framework, according to industry reporting published on August 27.
That decision could have implications for Canada’s broader channelisation strategy.
If Canadian consumers want access to new betting products but cannot find them through licensed operators, offshore platforms may have an opportunity to capture that demand.
This creates a difficult balancing act for regulators.
Consumer protection remains a central reason for maintaining regulated markets, but overly restrictive product rules can potentially push some demand toward operators outside the Canadian regulatory system.
Offshore Activity Is Not Evenly Distributed Across Canada
Another important finding is that offshore gambling varies dramatically between provinces.
The research cited in August reports estimated offshore shares of:
- Saskatchewan: 93%
- Alberta: 88%
- Manitoba: 88%
- Quebec: 83%
- British Columbia: approximately 49%
Ontario is the major outlier, with approximately 91% of online gambling directed toward its regulated market according to the cited research.
These figures should be interpreted carefully because different studies use different methodologies and definitions of channelisation.
Nevertheless, the overall pattern is difficult to ignore.
Ontario’s competitive regulated model has achieved considerably stronger market capture than most other Canadian jurisdictions.
What Does This Mean for Canadian Online Casinos?
For players, the growth of regulated markets means there are more licensed Canadian online casinos and sportsbook options becoming available.
Alberta’s market launch is particularly significant because it introduces a new competitive framework in a province that previously had very limited regulated online options.
But the August research suggests that simply adding licensed operators may not be enough.
Operators will need to compete on the factors that matter most to players, including:
- Casino game selection
- Sports betting markets
- Payment methods
- Withdrawal speed
- Bonuses and promotions
- Mobile experience
- Customer support
- Product innovation
- Trust and security
At the same time, regulators will need to balance product flexibility with player protection.
Responsible Gambling Remains a Major Concern
The offshore debate is not only about market share.
It also raises questions about player protection.
Licensed operators operate under provincial rules covering responsible gambling, player verification, advertising and other safeguards.
Offshore operators sit outside those provincial regulatory systems.
The August research also referenced a 2026 Toronto Metropolitan University study involving more than 1,800 sports bettors in Ontario and Alberta.
The study found that men under 30 reported substantially higher gambling-related harm and anxiety than the broader betting population, while 60% said responsible gambling messaging had little or no impact on them.
These findings don’t establish that offshore gambling causes gambling harm.
However, they highlight why regulators and operators are paying increasing attention to which players are most exposed to gambling risks and how effective responsible gambling messaging actually is.
Can Alberta Repeat Ontario’s Success?
Alberta could provide an important answer.
The province has only recently moved into its regulated private iGaming era, meaning there is still plenty of time for the market structure to evolve.
New operators and suppliers have already been entering the market throughout August.
Industry reporting shows that Alberta added two more online casino operators in late August, while suppliers including Amusnet and Endorphina also expanded their presence.
That growing competition could give Alberta players more regulated alternatives.
The real test will be whether those alternatives can pull meaningful wagering activity away from offshore platforms.
Canada’s iGaming Market Faces a Critical Test
The August 2026 data provides a fascinating snapshot of Canada’s online gambling market.
The regulated sector has clearly made significant progress, particularly in Ontario.
But the national picture remains fragmented.
One-third of Canadian online gamblers are still estimated to use offshore sites, while those operators are handling a disproportionately large share of wagering activity.
Ontario demonstrates that strong channelisation is possible.
Alberta now has the opportunity to test whether a competitive regulated market can produce similar results.
For Canada’s online casino and sports betting industry, the next few years could determine whether regulated operators can close the gap—or whether offshore platforms continue to capture a significant share of Canadian gambling demand.
The Bottom Line
Canada’s regulated iGaming market is expanding, but the August 2026 research shows that the offshore market remains a major force.
The challenge for regulators and operators is therefore not simply to create more licensed gambling sites.
It is to create a regulated market that Canadian players actually want to use.
That means combining strong player protection with competitive products, convenient payment options, innovative betting experiences and enough choice to compete with offshore alternatives.
As Alberta’s new market develops and Ontario continues to expand, the performance of both provinces could provide valuable lessons for the future of Canadian iGaming.
