Canadians Embrace the Hybrid Casino Model

Canada’s gambling market has undergone huge changes in the past five years. But now as 2025 closes, we are finally starting to see data that supports what many operators already sensed: Canadians aren't abandoning casino floors for online play. They’re using both, often in ways that stand out when compared to other legal jurisdictions. 

The typical narrative about modern gambling, especially in the United States, is that younger players are far more comfortable playing on their phones than at actual slot machines, and that older generations have trimmed back as discretionary income dried up after the pandemic. Coupled with the lower cost structures and a tsunami of advertising spend, online operators have seized the momentum, causing declining visitation and lower revenue at brick-and-mortar casinos.

But the latest research out of Canada emphasizes something far more nuanced. The hybrid casino model isn’t being driven by a generational revolt, at least not solely, or sudden changes in household budget. It’s driven by choice, convenience, value, and a regulatory environment that doesn’t prioritize one form of gambling over the other. 

Physical Casinos Are Here To Stay

Canada's gambling sector is set to reach $15.6 (CAD) billion this year. And it’s the iGaming numbers out of Ontario that are the headliners. Almost fifty online operators, 20%+ YOY growth, and a billion in revenue per year. Even in the other provinces with smaller or more limited online offerings, players haven’t abandoned casino floors. They’ve simply added online play to their preferences. 

You can see it in the physical investments being made. Toronto opened a billion dollar casino with 4800 land based slots in 2022. Alberta and Saskatchewan have been building new brick-and-mortar properties as well. Which isn't to say that traditional gaming spaces all around the globe aren't under pressure, just that much of that pressure doesn't come solely from online operators.  

One important consideration is that only around half of revenues for major casinos now comes from gaming. The other half is hotel rooms, restaurants, retail, and shows. This multipurpose model that served Las Vegas well for so many decades is still alive and making billions in most markets, despite some pullback in Sin City itself. This approach allows retail casinos to offer something that those online operators can’t: glitz and spectacle and human interaction. If online were really a clear and present danger, you wouldn’t see billions poured literally into the ground to build new properties. 

Why Hybrid Works Well in the Great White North

Canada, however, has a very unique player proposition, one that is seen in online shopping and other market sectors, not just gaming, and that is vast distances and unforgiving weather. The country leads the world in shoppers who prefer a mix of online and retail experiences, and it’s not even close.

Almost 90% of households prefer to shop both on their phone and down the aisle. This is more than 10 points higher than in the US, and also noticeably more than a third of Canadians point to loyalty clubs and membership rewards as a primary differentiator when choosing a brand. Again, much higher than almost anywhere else in the world. We shouldn’t be surprised to see that behaviour spill over to their gambling preferences as well. 

Consider that Ontario alone is the size of France and Spain combined, yet home to slightly more than 16 million. The average high temp in January doesn’t rise above freezing, and in some parts of the province the average low is around -15. Snowfall in the South can be around 2 feet, but farther north it is over five. It’s difficult not to see that these factors also come into play. 

One area where much attention has been drawn is the demographic of these online players. There is a lot of talk about younger gamblers turning their back on the traditional casino floor, but that just doesn't leap out of the data. Yes, younger players are more comfortable with online play from Europe to North America and LATAM as well. But the dominant market share is 25-34. Followed closely by 35-44. Eighting to 25 shows up strongly in the sports betting category, but they make up only around 10% of online gamblers in study after study across continents. 

If age alone were a factor, we should probably see a huge difference between 18 and 25, but in fact, they are roughly the same percentage as the 55 to 64 cohort. While this is an almost universal phenomenon, it plays out almost exactly the same in Canada as well. Though it should be noted that the over-65 age group drops to almost nothing.

Missing Seniors

But this is the same story we have seen play out not only in brick-and-mortar casinos in general but also in Las Vegas in particular. A startling statistic reveals the complete picture. The percentage of Las Vegas visitors last year over 65 was 6%. That number was 19% before the pandemic. So, if these people have cut back on land-based gambling due to perceived loss of value, and they aren’t playing at sweeps or legal online casinos, where is the marketing push?

Despite some myths about seniors and spending, they still hold the vast majority of household wealth not just in the US but in Canada as well. They appear to be an untouched audience segment, as their retail trips have dropped, but they register as barely a blip of online gamblers. More than 90% of Canadian seniors were online in a 2023 study, and they have a clear preference for brand loyalty and value propositions. Two areas that online casinos excel at. Perhaps there is a silver wave yet to play out in the Canadian iGaming space?

A Market Built on Balance

For now, the Canadian hybrid model works precisely because no single channel has been given legal precedence. And this hybrid casino model, the mix of online and land-based play, may define the next decade of gambling, not just here, but globally. Online casinos in Canada draw in those seeking convenience, low stakes, and no need to travel. 

Land based casinos still sell the entertainment proposition of dinner, entertainment, and gambling as an experience to be shared. Something that online platforms can’t replicate. Both have their place, and both are learning to feed and grow on the other, building a much more stable model for both.

It’s still very early days for Canadian gambling. Alberta should open up its online casino ecosystem in 2026/2027. But already the country may be showing us what the long term future looks like. The future is not a battle between digital and retail operators, but rather a market where both find a balance, allowing players to move seamlessly and with minimal friction between them.