Canadian iGaming Monopolies Under Fire as Black Market Thrives

Federal Silence and Provincial Isolation Fuel Unregulated Gambling Surge

Canada’s fragmented approach to online gambling is under increasing scrutiny as fresh concerns emerge over the expansion of the black market. With provinces operating their own regulated platforms independently and no federal oversight to unify the national iGaming framework, experts warn that players are being funneled toward unlicensed operators—undermining consumer protections and government revenue alike.

One Country, Multiple Markets: A System Divided

Unlike the cohesive models seen in many European jurisdictions, Canada has taken a decentralized route to iGaming regulation. Each province is effectively a self-contained ecosystem. Ontario, for example, launched its own regulated iGaming market in April 2022, opening the door to private operators under the supervision of iGaming Ontario (iGO). Meanwhile, other provinces such as British Columbia and Québec continue to operate government-run monopolies through platforms like PlayNow and EspaceJeux.

This provincial patchwork creates inconsistency across the country and confusion for consumers. Many Canadians turn to unlicensed international sites that offer better odds, more promotions, or simply a more user-friendly experience—often without realizing they're gambling in the unregulated grey or black market.

Calls Grow for a National Framework

Industry stakeholders and legal analysts are calling on the federal government to step up and provide a clear, unified regulatory roadmap. Paul Burns, president and CEO of the Canadian Gaming Association, has repeatedly emphasized the dangers of regulatory inaction, warning that the absence of national oversight is allowing illegal operators to flourish.

A consistent federal framework would not only simplify compliance for operators but also ensure more robust player protections and greater tax revenue capture. It would also level the playing field across provinces and reduce the appeal of rogue operators who currently exploit regulatory loopholes to market aggressively to Canadians.

Ontario: A Model or an Outlier?

Ontario's open-license model has drawn international attention for its success in attracting dozens of private operators to a regulated space. Yet, it remains an outlier within Canada. While operators in Ontario must meet stringent standards and pay taxes locally, they are often still accessible to players in other provinces—raising legal and ethical questions.

Furthermore, Ontario’s model exposes the inefficiencies of the current system. Licensed operators there must spend heavily on compliance, while offshore competitors remain unburdened and continue to siphon players from less regulated provinces.

What’s at Stake?

The stakes are high: industry experts estimate that billions of dollars flow annually into unlicensed iGaming sites. This represents a major loss of potential tax income and offers no guarantees for consumer safety. Players on these sites have little to no recourse in cases of fraud, addiction, or unfair practices.

Moreover, the current environment discourages responsible gambling initiatives, as offshore operators are not bound by Canadian standards or required to invest in prevention and treatment programs.

The Path Forward

While provinces continue to experiment with localized solutions, the need for national dialogue is growing more urgent. A federally coordinated strategy—either through legislation or an interprovincial regulatory coalition—could establish baseline rules, ensure equitable access for all Canadians, and curb the influence of the black market.

Until then, the patchwork remains—and so does the risk.