In the first quarter of 2025, Canada’s gambling industry experienced many changes. Gambling companies run by the provinces have reported strong financial earnings. At the same time, there have been important regulation changes that could alter the industry’s future. These shifts show that the gambling sector is resilient and capable of adapting to new market situations and political pressures.
The online casino segment has seen impressive growth, with Canadian players increasingly preferring platforms known for instant payouts. This trend reflects broader consumer preferences for quick access to winnings and hassle-free gaming experiences that many offshore operators provide. Industry analysts note that the speed of withdrawals has become a decisive factor for players when choosing where to gamble online.
Loto-Québec has announced remarkable financial results for Q3 of the fiscal year 2024-25, potentially setting the stage for a record-breaking annual performance. The Quebec-based gambling operator released data on March 17, showing substantial growth in both revenue and net income.
For the quarter ending December 31, 2024, Loto-Québec generated $734.2 million in total revenue, a 5.1% increase compared to the same period in the previous fiscal year. Net income demonstrated even stronger performance, rising by 6.3% year-over-year to reach $360.5 million.
Jean-François Bergeron, the President and CEO of Loto-Québec expressed pride in the organization’s performance and emphasized that these financial gains ultimately benefit all Quebec residents through contributions to the province’s public services.
Year-to-date figures from April 1 to December 31, 2024, further highlight this positive trajectory, with revenue reaching $2.23 billion (a 6% year-over-year increase) and net income climbing to $1.13 billion (up 5.2%).
Among Loto-Québec’s revenue streams, the casino and gaming halls sector has emerged as the strongest performer, generating $906.8 million from April to December 2024 and accounting for 40.7% of total revenues. According to quarterly reports, this division is on pace to achieve a record year.
By comparison, lottery products contributed $703.4 million (31.5% of total revenue), while other gaming establishments yielded $645.5 million (28.9%). This distribution demonstrates the continued importance of physical casino locations despite the growth of online alternatives.
Loto-Québec’s financial success coincides with several strategic partnerships and product launches in recent months. In late September 2024, the corporation introduced SUPER CAGNOTTE, the first cross-platform mystery jackpot using Light & Wonder technology, available both online and on COSMIC gaming machines at physical casino locations.
Further expanding its offerings, Loto-Québec became the first Canadian operator to feature Inspired Entertainment’s Hybrid Dealer Roulette game. In November, it enhanced its live dealer options through a partnership with Awager, launching an immersive gaming experience with real-time interaction and 4K streaming from Casino de Montréal.
The corporation also secured an agreement with Bragg Gaming Group, bringing exclusive games from Bragg’s in-house content studios to Loto-Québec’s online platforms. These partnerships demonstrate the corporation’s commitment to innovation in both physical and digital gambling environments.
Even though Loto-Québec remains the only officially authorized online gambling provider in the province, it continues to face considerable challenges from unauthorized offshore operators. The government corporation captures around 60% of Quebec’s digital gambling and sports wagering sector, though independent analysis from H2 Gambling Capital indicates the actual figure might be closer to 44%.
In a development with potential industry-wide implications, the province of Alberta has implemented a ban on the purchase of slot machines and video lottery terminals (VLTs) manufactured by U.S.-based suppliers, effective March 6, 2025.
The Alberta Gaming, Liquor and Cannabis Commission (AGLC) issued this directive as a retaliatory measure against new U.S. tariffs on Canadian goods. Under the new restrictions, gaming equipment procurement is limited to companies that either maintain support services within Alberta or are headquartered in countries that have established free trade agreements with Canada.
The Alberta ban could have substantial financial implications for major Las Vegas-based gaming equipment manufacturers. Industry analysts suggest that leading companies such as International Game Technology (IGT), Light & Wonder, Aristocrat Gaming, and Konami Gaming stand to lose millions of dollars in potential sales.
Alberta represents one of Canada’s top three gaming markets and accounts for approximately 4% of total sales for these major slot machine manufacturers. Market research firm Gaming Analytics International estimates the annual value of this market segment at approximately $85-95 million.
The ripple effects could extend beyond Alberta’s borders, as industry experts warn that similar restrictions might be adopted by other significant Canadian gambling jurisdictions, particularly British Columbia and Ontario. Together, these three provinces represent nearly 70% of Canada’s gaming equipment market.
Canada’s tariffs are set to remain in place despite U.S. President Donald Trump postponing tariffs on many imports from Canada for a month. Alberta’s Gaming Minister David Hanson confirmed that the province’s ban on U.S.-made gaming equipment will continue regardless of the temporary postponement, citing the need for long-term policy stability in the procurement process.
Canada’s provinces continue to navigate complex operational and regulatory environments, which means that industry stakeholders need to remain adaptable to new opportunities and challenges. Despite both the sector’s growth potential and its vulnerability to economic and political influences, Quebec and Alberta illustrate its contrasting development.
Provincial operators like Loto-Québec are increasingly focused on digital innovation while retaining the appeal of traditional casino experiences as online gambling expands across the country. In the meantime, equipment manufacturers have to navigate regional procurement policies influenced by international trade agreements.
As the industry evolves throughout 2025, these trends suggest a Canadian gambling sector characterized by technological advancement, regulatory complexity, and continued financial growth despite external pressures.
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