Peter Smith
The Canadian case is instructive for any market owner or regulator considering the leap: it’s less about slapping a licence on a website, and more about trust, educating users, and shaping demand. Let’s walk through what’s worked, where the risks are, and what lessons can be borrowed for other regulated digital ecosystems.
1. Regulation With a Growth Heartbeat
Ontario launched its regulated iGaming market in April 2022, opening the doors to private operators under strict oversight. That move was a turning point. In the fiscal year 2024–25, players wagered CA$ 82.7 billion, and the state earned a record CA$ 3.2 billion in gross gaming revenue.
The lesson? A regulated market doesn’t have to mean tame. With the right structure, you can channel serious demand into safe, compliant environments rather than just pushing folks offshore.
2. Channelization Is Key
Regulators often talk about channelization — getting gamblers off unlicensed sites and onto licensed ones. In Ontario, about 83.7% of players reported using regulated sites in a recent Ipsos study, but 16.3% still strayed to unregulated platforms in the prior three months.
That’s progress, but it shows channelization is more of a lever. It takes time, education, and constant reinforcement. Regulators need to know that building infrastructure is half the battle; nudging behavior is the rest.
3. Transparency Breeds Trust
The Ontario regulator (iGaming Ontario) has leaned into transparency, now releasing monthly performance reports. That kind of openness helps demystify the sector, drive accountability, and reduce misconceptions.
When users (and policymakers) can see how many accounts are active, how much is wagered, and how revenue is split by verticals (casino, sports, poker), it reduces fear. A transparent operation builds legitimacy. That's an absolute must for scaling regulated platforms.
4. Social Responsibility
Scaling responsibly means embedding player protection from the get-go. Ipsos also showed that in Ontario, a substantial number of players bounced between regulated and unregulated sites, suggesting not everyone feels entirely locked in by regulation.
This signals that regulation should be more than a box-ticking exercise. Platform operators and regulators need to continually invest in responsible gambling tools (limits, self-exclusion, education), and communicate them effectively, especially to high-risk users.
5. Economic Impact
Here’s where things get good for governments: in its first year, Ontario’s regulated iGaming industry contributed approximately CA$ 1.58 billion to GDP, supporting over 12,000 full-time equivalent jobs — and generating hundreds of millions in tax revenue.
It shows that scaling a regulated market can pull economic weight. If done right, regulation can become a lever for economic growth, instead of control.
6. Curating a Strong Marketplace
With 49 licensed operators running 84 gaming sites in Ontario, competition is fierce.
Competition encourages innovation (better user experience, smarter promotions) and keeps prices in check. Regulators thinking of scaling should favor open, competitive frameworks over monopolies: an ecosystem thrives when operators battle for market share under clear, fair rules.
7. Don’t Underestimate the Power of Reputable Information
When users are navigating a new regulated space, they want guidance. That’s where trusted review sites come in. For instance, when novices try to figure out which gambling sites are legit, they might come across reviews citing that Casino.org rates the best online casino options in Canada, which gives reassurance and helps steer them toward safe, licensed platforms.
Regulators and platforms can partner (directly or indirectly) with such review engines to boost player education and trust. It’s a practical way of lowering the barrier to entry for newcomers while reinforcing the credibility of regulated options.
8. Advertising
Canada is a case study that shows the friction around promoting iGaming. You don't want the push to grow to come at the expense of responsible advertising. After all, aggressive marketing can backfire, especially in gambling. This is why scaling too quietly can pose risks.
The regulators in Ontario have restrictions on how platforms can advertise. It’s a delicate dance: you want to drive growth, but without risking player protection or your own reputation.
9. Lessons from the Grey Market Hangover
Even with rapid regulation, some players still slip into unregulated platforms. That’s a clear warning for market designers: you can’t fully eliminate the grey or black market overnight.
Regulation needs to be paired with enforcement (blocking, penalties), education, and sustained outreach. Otherwise, the unregulated sites become a stubborn shadow that undercuts your regulated market’s legitimacy.
10. Scaling Beyond Borders
If you’re in a country or region thinking of building or expanding a regulated iGaming or digital-transaction-heavy platform, Canada’s example offers a blueprint:
- Start with an open-competition framework — don’t assume a monopoly is necessary.
- Make transparency non-negotiable — publish data, encourage trust.
- Embed social responsibility deeply — regulation is worthless if harm isn’t managed.
- Channel users gradually — conversion from unlicensed to licensed will take years.
- Collaborate with trusted third parties (like review sites) to educate and reassure users.
What We've Learned
Canada’s iGaming market isn’t a fairy tale of immediate perfection. It’s more like a thriller where the hero builds slowly, defends wisely, and wins by being meticulous. Scaling regulated platforms is never simple, but Canadian markets prove that with the right levers, “scalable” doesn’t mean “sell-out.” For regulators and operators alike, it’s a case study in building something that endures.
Peter Smith
