How Sports and Gambling Are Affecting the Canadian Economy

Canadian sports, and its relationship with the local gambling industry, play a multifaceted role in influencing the country’s economy with contributions to various sectors generating both positive and negative impacts. In this brief, we’ll explore the complex relationship between sports, gambling, and the economy by highlighting how they intersect to influence Canada’s economic activity.

Together, sports and the gambling industry generate significant revenue for Canada’s economy with professional sports leagues like the National Hockey League (NHL) and the Canadian Football League (CFL) and their affiliations to online sports betting platforms, lotteries and digital casinos like those listed by Techopedia, generate revenue through sponsorships, ticket sales, broadcasting rights, merchandise sales, and licensing agreements.

The gambling industry turns over millions of dollars through online casino play and sports betting, supporting local economies and contributing substantially to government coffers. As Vlad Grindu, Techopedia’s gambling expert, explains:

“Ontario is a special jurisdiction for online gambling in Canada due to its recent changes in regulations. On April 4, 2022, Ontario legalized online gambling and licensed operators through the Alcohol and Gaming Commission.”

The largest and most populous state in Canada has provided a successful online gambling and sports betting blueprint, which other Canuck states will likely follow in the years to come. Grindu continues by pointing out the popularity of sports betting, not only in Ontario but in the entire country:

“Sports betting sites in Canada are hugely popular, with hockey reigning as the top choice for bettors, followed by soccer, basketball, baseball, and golf. Cricket, boxing, curling, rugby, and tennis sportsbooks also get good action. Plus, Canadians enjoy live betting for the major leagues, like the CHL, NHL, NBA, and NFL.”

The upsurge in sports betting has boosted the Canadian economy – a trend that will likely continue. Still, there are also other ways that sports are contributing to growing government coffers. Major sporting events in Canada attract tourists from across the country and the world. These stimulate economic activity through the tourism and hospitality sectors.

Events like the CFL’s Grey Cup and periodic international sports tournaments, combined with regular NHL, NFL, NBA, MLB and MLS games, are lucrative to the Canadian economy, drawing visitors to host cities and generating revenue for hotels, restaurants, bars, transportation services, and entertainment venues.

Similarly, sports boost popular gambling destinations like Niagara Falls and Vancouver, with local and visiting supporters seeking entertainment and gaming experiences, contributing to local economies through the hospitality and transportation industries.

Sports and the online gambling industry create employment in various Canadian economic sectors. Professional sports teams and leagues offer an array of jobs to many, from athletes and coaches to administrators, marketing professionals, and support staff. Sponsorships agreed with gambling and sports betting platforms mean that sports bodies can spend more on these positions.

Tax revenue for federal, provincial, and municipal governments is growing through the relationship between sports and the gambling industry, allowing for more investment to fund essential services and programs.

Government levies on sports-related activities like gambling-related and other advertising revenues, ticket sales, and player salaries assist in financing infrastructure projects and social welfare programs. These, in turn, benefit Canadian communities. Gaming taxes, licensing fees, and revenue-sharing agreements between sports bodies and gaming operators further boost Canada’s revenue.

Canadian sports, in tandem with the online gambling industry, profoundly impact the country’s economy. While they offer economic benefits and opportunities, social costs and responsible gambling programs require policymakers, regulators, and stakeholders to balance their economic considerations with social responsibility. Canada’s ability to do so mitigates any negative impacts on their communities.