Gaming in Canada has made significant strides in recent years, thanks to advancements in technology, changing customer preferences, and regulatory updates. Gaming in the Great White North consists of video gaming, casino gaming, and esports. The combination of these three niche gaming sectors makes up a huge gaming market in the country, worth $4.3 billion.
All three gaming niches are booming. According to the Entertainment Software Association, 23 million people in Canada enjoy playing video games. That’s 61% of the population. Additionally, it’s been reported that about 60% of Canadians bet in one form or another whether it be on the lottery, at physical casinos, or online. Online casinos in Canada have been growing in popularity, with Ciaran McEneaney sharing that online betting platforms often provide players with a huge selection of games and unique bonuses. Similar to video gaming and gambling, esports is also popular in Canada. In fact, Canada ranks 10th in the world, with players raking in over $45 million in esports prize money.
In this article, we’ll take a closer look at the sectors that make up Canada’s gaming industry in 2024.
Video Gaming
The video gaming industry in Canada is huge and still growing. Not only does it entertain millions of players, but it also employs Canadian citizens and supports the economy in a major way.
There are currently 937 active video game companies in Canada, which is a 19% increase from 2019. The majority of these businesses are located in British Columbia, Quebec, and Ontario, but there are also some in other territories like Alberta and Atlantic. These companies support the video gaming industry and the Canadian economy through high revenue and employment. Combined, the video gaming industry in Canada employs over 32,000 full-time employees, with an average salary of $78,000.
Beyond employing Canadian citizens, the video gaming industry contributes to the economy of the country through revenue generation. In fact, it reportedly contributed $5.5 billion to the GDP in 2021, which was an increase of 19% from 2019. When speaking about the impact that gaming has on the economy, Jayson Hilchie, President and SEO of the Entertainment Software Association of Canada said: “Canadian video games are an innovative and critical export sector – we bring Canadian talent and Canadian stories to the world stage. And with 84% of our sales to foreign markets, driving billions of dollars of revenue and supporting tens of thousands of good jobs, it’s safe to say our industry is making a global impact.”
Casino Gaming
Gambling is another popular gaming niche in Canada, which consists of subsectors like in-person wagering, online casino gaming, lottery games, and sports betting. There are a mix of gambling regulations in the country, with some rules and laws implemented at the federal level, and other laws set by individual territories. For example, online casino gaming was made legal in Ontario in 2022, however, it still remains banned in Nova Scotia, with many bettors in the territory visiting sites that are registered in neighboring territories or even international offshore betting sites to place a wager or play games like poker and blackjack. Similarly, some territories allow wagering with crypto, while others do not.
While regulations may vary from territory to territory, gambling is popular throughout the entire country. As mentioned earlier in this article, it’s estimated that 60% of the population in Canada enjoys wagering and spends money every month to participate in games and gambling. This number seems to be increasing, with more Canadians gambling than ever before. The gambling industry in 2023 was reportedly worth $14.2 billion, and will likely continue to grow, especially as crypto gambling, with coins like Bitcoin, is further adopted.
A big bonus for players in Canada is that the Canadian government does not impose a tax on gambling winnings for casual players, so players get to keep what they earn. This unfortunately does not apply to professional players.
Esports Phenomenon
Esports has emerged as a new gaming subsector in Canada in recent years, with millions of players and viewers all around the country. Some of the major cities like Toronto, Vancouver, and Montreal host huge esports competitions and events, drawing in thousands of fans from Canada and beyond. The world championship, called ‘The International’ for the popular game ‘Dota 2’ took place in Vancouver, Canada in 2018, with a prize pool of $25 million. Huge esports tournaments like ‘The International’ draw in fans from all over the world and support the economy through travel, hotel stays, food services, transportation, and more.
Beyond tournaments supporting the economy, Canadian esports professionals have also earned huge prize pools for competing in tournaments. In total, Canada’s 4,000 esports players have earned more than $46 million in prize money. These prizes came from competing in 9,000 different tournaments with the highest-earning esports game being Fornite, earning Canadian players over $8 million.
Esports in Canada supports the economy by hosting tournaments and also rewards players with huge prize rewards. In addition, the country has a solid fan base. It’s been estimated that 1.5 million Canadians watch esports games and tournaments at least once a month. As Esports continues to grow, and as the country hosts more large-scale events and tournaments, this is yet another gaming sector that we expect to see flourish.
Emerging Technologies and Trends
All three of the above-mentioned gaming sectors benefit from emerging and advancing technologies. Technology like virtual reality (VR) and augmented reality (AR) are already enhancing experiences and increasing engagement in video gaming, casino gaming, and esports. Similarly, artificial intelligence (AI) is also changing how operators do business and how players interact with games.
As these technologies continue to develop, we can expect to see them integrate further into the three main gaming sectors in Canada.
Conclusion
Gaming in Canada consists of video gaming, casino gaming, and esports. These three gaming subsectors are unique and different, but the one thing they have in common is that each is thriving in its own way.
Video gaming is a popular pastime in the country, but on top of that, it’s also supporting the economy with jobs and through revenue generated by its many gaming companies. Many Canadians enjoy casino gambling and wagering, and as online betting starts to provide more options for players, we’ll likely see this subsector continue to grow. Esports is the newest niche and is already booming, with huge tournaments and giant prize pools.
