Unlicensed casinos are out-earning licensed sites in Canada, new research warns

New research published on 25 August 2026 has found that unlicensed casinos are generating more in wagers than fully licensed operators in Canada, even though most players still use regulated sites. The study, produced by CasinoCanada.com using market data from analytics firm Blask, ranked the offshore, crypto-friendly brand Stake as the most valuable gambling brand in the country, despite it holding no provincial licence. For players, the finding is a reminder that a big, familiar brand name is not the same as a licensed and accountable one.

What the research found

The report analysed 301 gambling brands active across Canada and valued Stake at around CAD 2.5 billion (about USD 1.8 billion), placing it ahead of every regulated competitor. Four of the ten most valuable brands operating in the country were offshore sites that do not hold a Canadian licence.

The imbalance becomes clearer when you look at how money moves. Blask data for August 2026 shows that 66.47% of Canadian online gamblers use licensed operators, while 33.53% use offshore platforms. Yet the smaller offshore group wagered an estimated CAD 712 million (USD 512 million), compared with CAD 484 million (USD 348 million) through licensed sites. In short, a minority of players is sending far more money through sites that sit outside the regulated system.

Why unlicensed casinos matter for players

The core risk with unlicensed casinos is that the safeguards players rely on are missing. A licensed operator has to meet rules on identity checks, fund protection, complaint handling and responsible gambling tools. When something goes wrong, such as a withheld withdrawal or a disputed bonus, players have a regulator and, in many markets, an independent dispute service to turn to. On an unlicensed site, that route often does not exist, and there is little that can be done if funds are frozen or an account is closed.

The research also points to who is most exposed. It cites a 2026 Toronto Metropolitan University study of more than 1,800 bettors which found that men under 30 reported 50% more gambling-related harm than the wider betting population. Account-level data referenced in the report showed that problem gamblers made up 2.1% of players but accounted for 46% of offshore turnover. That pattern suggests the money flowing to unlicensed casinos is concentrated among people who are already at higher risk.

What channelisation means for safety and payments

Channelisation is the share of gambling that happens on licensed sites rather than offshore ones. A high rate means most play is inside the regulated system, where consumer protection applies. The CasinoCanada report argues that Ontario’s often-quoted 91% rate flatters the national picture. Outside Ontario, it estimates offshore leakage of 93% in Saskatchewan, 88% in Alberta and Manitoba, and 83% in Quebec, with British Columbia nearer 49%.

Payments are part of the reason players drift offshore. Regulated Ontario operators must hold balances in Canadian dollars through an authorised provider, which by design keeps cryptocurrency out of the licensed market. Offshore sites lean into that gap, marketing crypto casinos and faster, less restricted transactions. The trade-off is that those quicker payments come without the verification and withdrawal protections that licensed casinos are required to provide.

How to check a casino is properly licensed

The practical takeaway for players is to confirm a casino’s licence before depositing, wherever they live. Look for a named regulator and a licence number in the site footer, then verify it on the regulator’s own register rather than trusting the badge on the page. In Ontario that means iGaming Ontario and the AGCO; in Europe it is bodies such as the UK Gambling Commission or the Malta Gaming Authority. Our guides to casino licences and safe online casinos explain what each licence covers and what protection it gives you. Reading independent casino reviews before you sign up is another quick way to spot sites that avoid regulation.

Betspin view

The headline that an unlicensed brand is Canada’s most valuable is striking, but the more useful figure for players is the money gap. It shows that offshore sites are winning share not on trust but on products and payment options that licensed operators are not allowed to offer. That may change as regulators adjust their rules, and it is worth watching whether provinces outside Ontario move toward a joined-up, national approach. Until then, the safest choice is still a casino that holds a licence you can verify, backs it with proper responsible gambling tools, and gives you somewhere to turn if a dispute arises. A recognisable logo is not a substitute for that.