One in three Canadian bettors now uses offshore platforms, with this segment generating significantly higher betting volumes than players using regulated sites.

New research published by CasinoCanada.com highlights the growing presence of offshore operators in the Canadian market and raises new questions around regulation, consumer protection and the ability of licensed platforms to retain and attract players.

The analysis, which examines 301 gambling brands active in Canada, indicates that offshore operators continue to capture a significant share of the country’s betting activity despite the expansion of regulated markets.

According to Blask figures for August 2026, 66.47% of Canadian gamblers currently use licensed sites, while 33.53% bet through offshore platforms. However, the difference in betting volume is considerably larger: offshore operators recorded approximately CAD 712 million (US$512 million) in wagers, compared with CAD 484 million (US$348 million) through regulated platforms.

The picture varies significantly across provinces

The research also highlights major differences between Canadian jurisdictions.

While Ontario records a channelisation rate of around 91%, other provinces show significantly higher levels of offshore activity. The report estimates offshore leakage at 93% in Saskatchewan, 88% in Alberta and Manitoba, and 83% in Quebec.

Meanwhile, British Columbia, where BCLC’s PlayNow platform has an established presence, records an estimated offshore activity rate of approximately 49%.

The figures suggest that Ontario’s performance does not necessarily reflect the Canadian market as a whole and highlight the significant differences between provincial regulatory models.

Product, cryptocurrency and prediction markets

According to CasinoCanada, one factor behind the migration towards offshore platforms is access to certain product features that regulated operators cannot currently offer under provincial frameworks.

In Ontario, for example, Alcohol and Gaming Commission of Ontario (AGCO) standards require player balances to be held in Canadian dollars through authorised financial services providers, effectively excluding cryptocurrency from the regulated market.

Prediction markets also represent a rapidly developing area operating largely outside traditional provincial frameworks. The research indicates that offshore activity linked to these products has increased by 161%, while certain offshore operators have recorded significant year-on-year growth in their Canadian business.

A challenge for player protection

The report also highlights the need to examine offshore activity from a consumer protection perspective.

A 2026 Toronto Metropolitan University study involving more than 1,800 bettors from Ontario and Alberta found that men under 30 reported 50% greater gambling-related harm and 44% higher anxiety than the wider betting population.

The study also found that 60% of participants considered responsible gambling messaging to have little or no impact on their behaviour.

CasinoCanada’s research also cites Norwegian account-level data showing that problem gamblers represented just 2.1% of players, but accounted for 46% of offshore betting turnover.

Canada’s regulatory framework faces a new challenge

Eugene Ravdin, Head of PR at CasinoCanada, said Ontario has demonstrated that regulation can work at scale, but warned that the wider Canadian market remains fragmented.

“Offshore operators aren’t winning on trust or on brand – they’re winning on products licensed operators are structurally not allowed to offer, marketed to exactly the group the data says is already at most risk.”

Ravdin added that improving responsible gambling messaging alone will not be enough to bring back players currently using offshore platforms.

The research therefore highlights one of the key challenges facing Canada’s gambling market: finding the right balance between regulation, product competitiveness, channelisation towards licensed operators and effective consumer protection, particularly as new betting formats and digital products continue to gain traction.