87.5% of Canadian Gambling Businesses Have Fewer Than 100 Employees: Why SMEs Matter to the Industry

Canada’s gambling industry may be associated with major casino groups, provincial lottery corporations, and international online brands, but its business population tells a different story. The sector depends heavily on smaller companies that operate venues, develop technology, provide specialist services, and support the wider gambling supply chain.

In 2025, Canada had 1,040 gambling industry establishments. Of these, 561 had at least one employee, while 479 were non-employers or businesses with an indeterminate employment status. Among employer establishments, 44.2% were microbusinesses with one to four employees and another 43.3% employed between five and 99 people.

Combined, that means 87.5% of Canadian gambling employers had fewer than 100 employees.

Only 10.5% were medium-sized businesses with 100 to 499 employees. Large employers with at least 500 workers represented just 2% of the total, equivalent to 11 establishments nationwide. These figures challenge the idea that Canadian gambling is controlled exclusively by a small collection of corporate giants. However, smaller company size does not mean lower standards. Competition remains intense, particularly among online operators. The best online casinos in Canada are all profiled at Casino.ca, where players can review the strengths and drawbacks of each option.

Small Businesses Form a Large Supply Network

Many gambling SMEs do not operate recognizable consumer brands. Instead, they provide the infrastructure and expertise that allow larger operators to function.

This network includes payment specialists, software studios, compliance consultants, cybersecurity providers, game developers, marketing agencies, data analytics firms, equipment suppliers, and responsible gambling technology companies. A business may have fewer than 20 employees yet provide a product used by thousands of players across several provinces.

Smaller firms can also focus on highly specialized areas that would not justify a large in-house department. This is particularly valuable in a regulated industry, where operators require expertise in identity verification, anti-money-laundering controls, geolocation, data protection, and player safeguards.

Ontario Demonstrates the Scale of the Opportunity

The growth of regulated online gambling in Ontario has created opportunities throughout the supply chain. During the 2025-26 fiscal year, the province’s regulated iGaming market processed more than C$103 billion in wagers and generated over C$4.2 billion in gaming revenue.

That followed C$82.7 billion in wagers and C$2.9 billion in revenue during 2024-25. In other words, annual wagering increased by more than C$20 billion as the market moved into its fourth year.

Casino games remain the market’s primary commercial engine. They accounted for approximately 84% of regulated wagers during 2024-25, while sports and other betting represented around 14%. This concentration creates considerable demand for casino software, live dealer content, payment processing, platform management, and customer retention services.

Large operators may capture much of the visible revenue, but they rarely build every part of their platforms themselves. Their growth can therefore translate into contracts and expansion opportunities for smaller suppliers.

SMEs Can Respond More Quickly

Scale provides financial strength, but smaller businesses often have an advantage in speed. A compact development team may be able to test a new feature, respond to updated technical standards, or adapt a product for a provincial market faster than a multinational organization.

That flexibility matters because Canada is not one uniform gambling jurisdiction. Regulation, product availability, and the role of provincial agencies vary across the country. Ontario has an open regulated iGaming model, while other provinces continue to rely more heavily on government-operated platforms.

SMEs can build services around these differences. They may specialize in one province, one compliance function, or one part of the player journey rather than attempting to serve the entire market.

A Sector With Strong Business Fundamentals

The latest industry figures also point to commercial resilience. Canadian gambling SMEs recorded average annual revenue of approximately C$554,800 in 2024, while 84.9% were profitable. Although averages cannot show the circumstances of every business, the profitability rate suggests that smaller gambling companies are not simply surviving on the industry’s margins.

Canada’s 1,040 gambling establishments were spread across the country, although activity was concentrated in major markets. Ontario had 330 establishments, including 144 employers and 186 non-employer or indeterminate businesses. British Columbia had 278, Quebec had 168, and Alberta had 130.

This geographic spread supports regional employment and creates opportunities beyond traditional casino floors. It also allows companies to develop local knowledge that national and international operators may lack.

Small Companies, Industry-Wide Influence

The importance of SMEs is not defined by headcount alone. Smaller businesses increase competition, supply specialist expertise, accelerate product development, and reduce the industry’s dependence on a limited number of vendors.

Canada’s largest gambling companies may remain its most visible participants, but the sector’s structure is overwhelmingly small-business driven. With 87.5% of employer establishments operating with fewer than 100 people, SMEs are not a secondary part of the gambling economy. They are a central part of how it works.