Last fall, Maclean’s published a story about Phil, a young man addicted to gambling. He bet on sports before he ever gambled online, but he started doing the latter in 2022 when he noticed online gambling was everywhere. He tried making money on football but kept losing. The sports betting app then let him switch to casino mode, offering greater game variety. But Phil kept losing, even as he tried to climb out of debt while he was off work due to an injury.
In 2023, a player on the Ottawa Senators was suspended for half of the NHL season for sports betting. Ironically, as soon as his suspension was over, he once again wore his team helmet – which features the logo of a popular gambling company. In the NHL, gambling ads are plastered over all the boards and logos appear on jerseys or helmets. Gambling also dominates video advertising during games. There is a deep irony when athletes advertise an activity that they themselves are prohibited from playing.
Today’s Gambling Industry
In 2024, net revenue (revenue after deducting prizes and winnings) for commercial gambling in Canada was over $17 billion. Breaking revenue down provincially, net gambling revenue per adult is highest in Saskatchewan, totalling $827 per adult.
Online gambling has grown popular, particularly in Ontario. Nationally, in 2024, net revenue for online gambling totalled over $3.5 billion of the $17 billion total revenue from all sources. That’s roughly a fifth of total net revenue for commercial gambling in Canada – but keep in mind how new it is. Of this $3.5 billion, nearly $3 billion came from Ontario. Since Ontario opened the online gambling market to private providers in 2022, revenue jumped from less than $500 million to the nearly $3 billion in 2024.
Ontarians wagered an estimated $77.6 billion online in 2024, a 31% increase from 2023 ($59.3 billion) and well above the $21.6 billion wagered online over nine months in 2022. Online gambling from private providers generated revenues (all wagers, minus winnings, and not including other costs) of $2.98 billion in 2024, an increase of more than 31% over the previous year. Ontario’s online gaming industry had 1.3 million active player accounts by September 2024. The Ontario government collects 20% of iGaming’s revenue, amounting to an estimated $174 million last year.
Effects of Gambling
Unfortunately, gambling isn’t just really good at generating revenue. Gambling has been shown to lead to suicidality, poverty, relationship breakdown, family violence, neglect of children, and various forms of crime. Gambling is also commonly used by criminal organizations for money laundering.
A 2022 study by Statistics Canada (using data from 2018) found that 64.5% of Canadians over the age of 15 reported gambling in the past year. Of these, 1.6% (304,400) were at a moderate-to-severe risk of problems related to gambling. Although people from lower-income households were less likely to gamble, they were also more susceptible to gambling problems. People who gamble more than 1% of their income are at a much higher risk of harm to finances, relationships, and health than those who gamble less than 1%. For example, they are 4.3 times more likely to experience financial harm, 4.7 times as likely to experience relational harm, 3.9 times as likely to experience emotional or psychological harm, and 4.6 times as likely to experience harm from health problems. The average iGaming Ontario account spent between $232 and $320 per month during the 2024 fiscal year. This is well above 1% of monthly income for most participants. (One would have to earn $145/hour or $278,400/year for $232 to be only 1% of monthly income.)
In a study that considered 57 different risk factors, the players most at risk of problem gambling were those who gambled online. One U.S. study found that after the legalization of sports betting there were 23% more searches for help for gambling addiction, an increase which appeared to correspond to the growth in online sports betting. In 2021, 21% of callers to Ontario’s Problem Gambling Hotline were experiencing problem gambling online. In 2023, that number had increased to 63%. Given the risks, Australia has banned all online in-play betting on live sports events, as well as online slot machines and casino games.
What makes online gambling so addictive? As Cardus explained in a recent report focused on sports betting, one factor is in-play betting. These kinds of bets have changed online gambling from a game like the lottery to a game more like a slot machine, where you can place bets throughout the game. People can place bets at any time and from anywhere. And when bets can be resolved almost immediately, such as with in-game sports betting, users are more likely to place more bets. Online gambling also gives people the ability to game alone, and to use credit card payments for easy payment.
Advertising
Advertising has proven effective in attracting more players and getting them to bet more. But it is also associated with more frequent and riskier gambling. Ontario recognized this problem in part when it banned using athletes, celebrities, social media influencers, and others who would “likely be expected to appeal to minors” in online gambling commercials – unless, that is, the celebrity in the ad reminds you to gamble responsibly.
The Canadian Mental Health Association has recommended banning all advertising for online gambling because of the negative impact it has on vulnerable people and their families. The Association says more clients at their branches offering problem gambling supports are raising the issue of celebrity endorsements for online gambling. At the very least, the Association recommends that online gambling not be positioned or depicted as a risk-free activity. They note as well that surveys show that students who self-report betting online increased from 4% in 2019 to 15% in 2021. The connection between advertising and behaviour is why advertising for alcohol, cannabis, and tobacco are strictly regulated. For example, an advertisement for an alcoholic beverage may not show a person drinking it. And when’s the last time you saw a cigarette or tobacco commercial?
But advertising for sports betting in Canada is very permissive. One analysis estimated that Canadian viewers of a live sports broadcast were exposed to 2.8 references to sports betting every minute and that over 20% of viewing time included some form of gambling reference. In contrast, the United Kingdom and Ireland have ‘whistle-to-whistle’ bans, prohibiting gambling ads from five minutes before the game until five minutes after the game. British regulators have proposed banning gambling logos on jerseys as well.
Government Response
As noted previously, governments seem to have a financial incentive to allow the gambling industry to thrive – at least if you focus on the direct revenue and ignore the social cost. Gambling companies, too, have such an incentive, and so they spend hundreds of millions of dollars on advertising. Even though advertisements often mention ‘responsible gambling,’ they still contribute to gambling addiction and related harms. Provincial governments have a responsibility to limit the effects of online gambling on their citizens.
As we noted in the previous article, since 1892, Canada has permitted limited forms of and forums for gambling, including raffles held for charities, betting on horse races, or games of chance at fairs or exhibitions. Recent legal changes have blown this wide open, making it easy to gamble anywhere and at any time. A strong case can be made for returning to much broader and stricter limits on gambling. That case would build on the points made in our previous article about the immorality, injustice, and harm of gambling – balanced against the prudential limits of what governments can achieve and the difficulties and costs of enforcing any law. We can leave that aside for now, however, and look for opportunities to take meaningful action on this policy issue today.
A good starting point in our current political context would be to ban advertising for online gambling, or at least severely restrict it. In 2023, four Ontario NDP MPPs introduced a bill that would have prohibited the promotion of online gambling sites through advertising. While such a bill would not directly restrict gambling, it would reduce the promotion of an activity that is harmful to many Ontarians, and to which young people and people with mental health challenges are particularly susceptible. The bill did not pass before this year’s election, but we hope it will be reintroduced.
The evidence against online gambling advertising is clear and restricting it makes sense. But will the government be willing to restrict it and potentially see its revenue decrease? Stay tuned for further developments in the upcoming months.
Is gambling harmless recreation or a destructive vice? If the latter, can government do much to curb it? Is the best option simply to use gambling to raise public revenue?
During a 2020 debate about sports betting, Conservative MP Kevin Waugh noted that Canadians were betting an estimated $14 billion a year on sports events – before it was legal, through the black market and offshore sites. So, Waugh reasoned, government may as well legalize it and use it to raise funds for healthcare, education, or even help for gambling addiction.
Dr. Al Mohler, in a Briefing podcast, warns that when it comes to legalized gambling, “the government that is supposed to serve the people actually becomes the house that always wins.” And when the ‘house’ wins, many others must lose. In Part 1 of this two-part article series, we’ll look at the history of gambling in Canada, a Christian perspective on gambling, and the government’s responsibility. In Part 2, we’ll consider the impact of gambling – particularly online gambling and sports betting – and how Canada’s laws (or lack thereof) address that impact.
History of Gambling in Canada
In 1892, Canada’s original Criminal Code prohibited gambling as one of the “Offenses against Religion, Morals and Public Convenience.” Canada had gambling offences that preceded the Criminal Code as well. Since 1892, the Code has been amended to allow certain forms of gambling, including raffles held for charities, betting on horse races, or games of chance at fairs or exhibitions. In 1969, federal and provincial governments were permitted to conduct lotteries. In 1985, provinces were given exclusive authority to manage lotteries. Following these amendments, provinces began overseeing lotteries and horse racing and generating revenue from such activities. Since that time, and especially since the late 1990s, both casinos and online gambling have been on the rise.
In 2021, the federal government decriminalized single-game sports betting, allowing provinces to regulate sports betting as desired. Before this, sports betting was permitted only on the outcomes of multiple events, such as betting on three different events to occur in the same game. Where provinces have chosen to allow single-game sports betting, Canadians can now bet on the outcome of a single game. Many Canadians could now legally participate in betting for Super Bowl 2025 – that event brought in $1.39 billion USD in wagers. Not only that, but bettors can make a variety of in-game bets, such as who will score the next goal or get the next penalty.
Most provincial gambling has operated under crown corporations. However, in 2022, Ontario became the first province to open the online gambling market to private providers, overseen by iGaming Ontario. Enter the smartphone gambling apps. The Alberta government has also announced its intent to open online gambling to private companies and recently introduced Bill 48 to create a Crown corporation to regulate the gambling market.
A Christian View of Gambling
Gambling was, at one point, viewed as an offense against religion and morals. Today it tends to be seen as a form of recreation or entertainment – provided it does not become an addiction. Of course, gambling is not directly addressed in Scripture. However, there are important principles relevant to the issue.
Lord’s Day 42 of the Heidelberg Catechism, on the 8th commandment, teaches that “God forbids all greed and all abuse or squandering of his gifts” and that “I must promote my neighbour’s good… and work faithfully so that I may be able to give to those in need.”
There are three elements here that apply to gambling. The first element is how we use and view our money. Gambling appears to be an easy means of getting money and reveals a desire to get something for nothing. People generally don’t gamble with the intent of losing money. They want to ‘win big.’ But gambling is also a squandering of our money. Sure, some people win sometimes. But most do not. As noted above, ‘the house always wins.’ And that means the players lose. At the very least, gambling puts one’s money at risk, rather than stewarding it.
Second, even if someone does make money off gambling, it is made at the expense of others, without producing anything of value. Unlike other forms of market exchange, it isn’t mutually beneficial. One only wins when someone else loses. And some of these losers may already be caught in a cycle of addiction and poverty. The Westminster Catechism speaks about promoting our neighbour’s good, seeking to increase others’ wealth, as well as our own, by all just and lawful means. Even if gambling increases one’s own wealth, it does not increase the wealth of others.
Gambling does not just affect the individual who goes to a casino or places bets on a sports game. It can have much more far-reaching consequences for family, community, and broader society. Part 2 of this series will discuss these effects of gambling in more depth.
Finally, the Catechism notes the importance of “working faithfully.” The Bible, too, emphasizes the importance of working for a living, rather than multiplying our wealth through dishonest gain. For example, Proverbs 13:11, says “Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.” We also read of the importance of work in 2 Thessalonians 3:10, “If anyone is not willing to work, let him not eat.” And when we work faithfully, we can then share with those in need. Likewise, in Genesis 1, we read the dominion mandate, where God commanded Adam and Eve to work and to have dominion over the earth. Christians must not put their finances and families at risk in hopes of easy gain.
These broader principles certainly apply in more extreme cases of gambling (gambling frequently or compulsively or gambling huge sums). But Christians should also be careful to apply them in seemingly mild, recreational cases. For example, a bet with friends, or a buy-in to a poker game. We are called to be good stewards of our gifts, and that includes being wise about how we use our money. But commercial and online gambling are such that you don’t know the person you may be taking money from or how you’re contributing to the problems in their life. It is designed to encourage people to gamble more. Something that starts small can quickly spiral out of control.
The Government’s Role
What, then, is the government’s role? Should the government prohibit or restrict gambling simply because it’s a vice?
Governments make a lot of revenue off gambling. In Ontario, projections for revenue from the Ontario Lottery and Gaming Corporation (OLG) and iGaming Ontario (iGO) in the 2024-25 fiscal year totalled nearly $2.8 billion. This revenue is a clear incentive for governments to permit and regulate gambling. But gambling revenue is not as lucrative as it appears when the negative impacts of gambling are factored in. Unlike gambling revenue, the cost of gambling in terms of personal virtue, family health, and various opportunity costs (healthier and more productive ways that time and money might be spent) is hard to measure. It’s not all about money, but gambling carries economic costs too.
There’s also a question of whether gambling revenue is a good and just way for governments to raise revenue. Gambling revenue disproportionately collects income from the poor. In fact, some of the poorest households in Ontario are likely to spend nearly 5% of their monthly income on gambling. Some researchers see gambling revenue as a tax in all but name, and gambling appears to be a voluntary tax. But it’s different than other taxes Canadians pay. It’s not proportional to income like income tax.
It’s also not like other taxes on vices such as alcohol or tobacco. With gambling, the government is taking a cut of their citizens’ losses without deterring the practice itself. Taxes on cigarettes and alcohol raise revenue, but governments also strictly limit where alcohol and tobacco can be sold and how it can be advertised – with tobacco advertising practically banned entirely. These “sin taxes” are also meant to disincentivize people from smoking or drinking a lot. With gambling, however, governments permit both Crown corporations and private companies to promote it aggressively.
Scripture notes that government is “God’s servant for your good. But if you do wrong, be afraid, for he does not bear the sword in vain” (Romans 13). And of course, “Render to Caesar the things that are Caesar’s, and to God the things that are God’s” (Mark 12:17). Government has a role in taxing its citizens and using those funds to administer justice. But we should be wary of governments profiting from and promoting a vice. One researcher called the government “gambling’s biggest addict.” Gambling revenues continues to grow, and our governments have little incentive to stop or discourage that growth, despite the negative effect it has on Canadians. It is not the government’s role to win big at the expense of its citizens.
Of course, when it comes to combatting vice, the government’s role is limited and wisdom is needed. Ultimately, government cannot change hearts, and the law plays a limited role in changing behaviours. But even aside from moral questions, the consequences of gambling on Canadian society are much greater than any benefits derived from increased gambling revenue.
In our next article, we’ll look more closely at the impact of the promotion of online gambling and sports betting.
At the end of March, Minister of Service Alberta and Red Tape Reduction Dale Nally introduced Bill 48, the iGaming Alberta Act. Minister Nally explained, “We know that no form of gambling is truly safe. But we can help make it safer by making sure it comes with key social responsibility tools.”
Governments have a variety of options when it comes to online gambling. They could ban it. They could legalize online gambling regardless of which sites provide it. Or they could regulate it – meaning they can stipulate rules and safeguards that companies must follow in order to legally provide online gambling.
Alberta is looking to do the latter.
If passed, Bill 48 will create a new Crown corporation called the Alberta iGaming Corporation, which will regulate private online gambling companies. The rules for online gambling and potential safeguards for gamblers would be determined by the future Crown corporation and the government.
Currently, online gambling in Alberta is only legal through Play Alberta, a platform launched in 2020. That platform includes casino games, sports betting, and lotteries. It has over 356,000 player accounts, and generated $235 million in government revenue in 2024, up more than $42 million from the previous year.
Yet one of the government’s concerns is the amount of gambling happening through unregulated sites, other online gambling companies that are not legal. Minister Nally estimates that less than half of all the online gambling done in Alberta takes place on Play Alberta.
Alberta recently gathered feedback from Albertans through a consultation on online gambling. They noted that “iGaming has grown in popularity and visibility since August 27, 2021, when single-game sports betting was legalized in Canada.” In 2023, Premier Smith asked Minister Nally to implement “a comprehensive online gaming strategy with a focus on responsible gaming and provincial and Indigenous revenue generation.” Yet the government argues that they’re not doing it for the money – instead, they say they want to regulate existing online gambling in order to protect gamblers.
Ontario is the only other province that has tried this, in 2022. While it’s difficult to know how much online gambling would have grown had Ontario not opened it up to private companies, it is clear that online gambling is becoming more popular. Overall, gambling is causing serious harm, and levels of gambling addiction seem to be increasing. At the same time, gambling is not only more available and accessible but also heavily promoted through relatively unrestricted advertising.
While governments may say they’re not regulating online gambling for the money, revenue is part of the incentive. Ontario’s gambling revenue has continued to grow since expanding legal online gambling, as the province gets 20% of gambling revenue from regulated companies. Allowing and regulating online gambling includes an implicit approval of it, encouraging people to gamble ‘safely.’ But as Minister Nally noted, “no form of gambling is truly safe.”
Over the next couple weeks, ARPA Canada will release two more articles that examine the issue of gambling more broadly. Is gambling simply harmless recreation, or a destructive vice? What is the extent of gambling’s effects in Canada today, and how should governments respond? Stay tuned for those articles. In the meantime, if you live in Alberta, reach out to your MLA to let them know your thoughts on regulated online gambling.
Ontario recently began permitting private companies to host online sports betting, which has since grown rapidly in popularity. In response, four NDP MPPs have introduced a bill (Bill 126) that seeks to curb the social harms of gambling, particularly in relation to online gaming advertisements.
A lot of people mess up their lives by getting into gambling. But many people believe gambling can be done responsibly and should be permitted. It can also generate a lot of revenue for governments.
Background
Gambling is nothing new, but current technologies make it easier to engage in it, anytime and anyplace. Government prohibition or regulation of gambling also goes back a long way. Federal law says organized gambling is generally not allowed in Canada unless it is provincially licensed. Federal law also places parameters on what types of gambling provinces may permit, and how.
The Ontario Lottery Corporation, now known as the Ontario Lottery and Gaming Corporation (OLG), was created by the Ontario government in 1975 to regulate gambling and raise funds for public projects in the province. In 2021/22, OLG accounted for over $1.5 billion in revenue for the government of Ontario, with an estimated 60% of Ontario adults using OLG’s products annually.
Looking at internet gaming in particular, OLG’s customer base grew from an average of 31,000 per month in 2017/18 to nearly 257,000 per month in 2021/22. Until 2022, OLG had a monopoly on online gaming, and private providers were not allowed to operate in Ontario.
In 2022, the province opened up the market to private online gaming providers. The province created iGaming Ontario to provide a framework and oversight for these businesses. Ontario is the first and (so far) only province to launch a legalized online gambling market that private businesses may participate in. At the time, the government stated that “Ontarians spend close to $1 billion a year on online gambling with an estimated 70 percent taking place on unregulated, grey market websites, with limited, if any, consumer protection and responsible gaming measures.”
In its first year, iGaming Ontario reported $1.4 billion in revenue from sports gambling and online casino gambling. The government of Ontario collects 20% of that revenue, amounting to nearly $300 million. The argument is that a regulated online betting industry provides better protections for gamblers by ensuring that businesses follow provincial requirements such as game transparency, timely payout of winnings, and secure personal data collection. In addition to the revenue for the province and the supposedly greater protection for gamblers, the Ontario government touted its policy change as good for jobs and businesses, stating that it had generated 1,800 new jobs in the province.
Sports Betting
Another major change to online gambling took place in 2021, when the federal government passed legislation to legalize single-event sports betting and permitted provinces to regulate such activity. Single-event sports betting itself is estimated to be a $14 billion industry in Canada. The recent legalization of single-event sports betting, in conjunction with Ontario’s regulated gambling market, has led to increased popularity of sports gambling in the province.
If you watch sports in Ontario, you likely see betting advertisements from several companies during a single game. These ads are now easily as common as burger, beer, or truck commercials, with nearly 9 minutes of sports betting ads during a single game in the 2023 NHL playoffs.
One writer recently called sports betting the ‘new oxycontin’ because of its addictiveness and the way the industry profits off the addiction of others. He notes that “gambling addicts, unlike alcoholics and drug addicts, can solve the problems created by their gambling – by doing more of it.” Or at least so it might seem. Even if you’re in debt by a few hundred thousand dollars, just one big win can make up for it. And the ease of placing a bet online makes it easier to become addicted and to stay addicted.
On a practical level, sports betting can cause problems for fair competition in sports, with one sports ethicist calling it a bigger issue than doping or using performance-enhancing drugs. For example, in April, the NFL suspended five players for gambling on sports, with three of those players were found to have made bets on NFL games. It may be tempting for athletes to manipulate a game they are involved in, either to win a bet themselves, or because of influence from other gamblers.
Back to the Ontario Legislature
We mentioned the Ontario NDP’s Bill 126 earlier. The bill is titled the Ban iGaming Advertising Act and it would do just that, prohibiting the promotion of online gambling sites through advertising, with the threat of penalties ranging from $25,000 to $1 million.
The Alcohol and Gaming Commission of Ontario (AGCO), which regulates gambling in the province through iGaming Ontario, recently acknowledged the problems with advertising as well. The AGCO has proposed that athletes should not be permitted to promote gambling sites, since athlete endorsement greatly influences children. Additionally, the AGCO suggests that the government should “prohibit the use of cartoon figures, symbols, role models, social media influencers, celebrities or entertainers who are reasonably expected to appeal to minors.”
In response to the AGCO’s proposal, the Canadian Mental Health Association, among others, urged the AGCO to “prohibit all advertising for igaming due to the detrimental impact it has on youth, vulnerable individuals, and families.” They cite one survey which found that students reporting that they had bet money on online gambling platforms increased from 4% in 2019 to 15% in 2021. Because of the constant availability of online gambling formats and the constant barrage of advertising, it is also much more likely to lead to addiction.
The Ontario government may be focused on the goals of collecting revenue, creating jobs, and implementing protection for both businesses and consumers. But the government should not ignore the detrimental effects of gambling on society, particularly as it becomes easier to access and is promoted and popularized. According to Statistics Canada, over 300,000 Canadians were at moderate-to-severe risk of problem gambling in 2018 – years before iGaming started. While there are supposedly measures in place to help prevent gambling addiction, it remains a significant problem that can lead to marital breakdown, financial hardship, suicide, crime, reduced health, and increased use of alcohol and other substances. Government cannot wash its hands of the harm while collecting gaming revenues and allowing the proliferation of the industry despite the costs. Those already struggling with poverty are among those most at risk of becoming problem gamblers.
What Can You Do?
As Christians, we have reasons to object both to the practice and public promotion of gambling. We understand that we are called to be good stewards of our God-given resources, including money. If a person wins a bet, they do so at another’s expense. We ought to have a proper attitude towards money, not coveting it, but engaging in honest work to provide for our financial needs. Discouraging Christians from gambling is one thing. But how should we engage in a public debate about gambling policy? Keeping in view the good of our neighbours may lead us to support government measures to reduce the personal, familial, and societal problems associated with gambling.
While Bill 126 does not create any restrictions on online gambling per se, it is an important bill that recognizes the negative impact advertisements for online gambling can have and seeks to restrict the constant endorsement of online gambling. If you live in Ontario, send an EasyMail to your MPP to encourage them to support Bill 126 when it comes to a vote.