Elsa Fiott, Content Editor at Casino.org, takes readers on a trip down memory lane to chronicle how the North American online casino sector has gone from a small underground sector, to a behemoth of regulated operators across the continent since 2013.
What was once a niche corner of the internet has transformed into one of the fastest-growing segments of the global gambling market. What began in the ’90s with a handful of offshore gambling websites has developed into a sophisticated ecosystem of licensed operators, advanced gaming technology, and regulated markets serving millions of players across the US and Canada.
It is a story that has been shaped by technological developments, changing public attitudes, and a gradual but steady shift from prohibition to regulation. For many years, legal uncertainty and restrictive regulations limited the growth of online casinos throughout North America. It’s a far cry from what we are presented with now: a sector that is thriving and continues to develop in new and exciting ways.
Understanding how this market evolved offers valuable insight into the regulatory, technological, and commercial forces that have driven online casinos from a once controversial innovation to a mainstream form of entertainment. So, let’s go back to the beginning.
Online casinos first appeared in the mid 1990s. The internet was still in its infancy, but was becoming more widespread, albeit with slow dial-up speeds. Most operators were based offshore because neither the United States nor Canada had clear regulatory frameworks for internet gambling. Still, players were unfazed and relished the novelty of playing their favorite casino games from the comfort of their own homes.
Through websites licensed in jurisdictions like Antigua, Malta, and Gibraltar, players could now access basic games including slots, blackjack, and roulette. As, during this period, regulation was limited, consumer protections varied widely. Compared to now, it was an innocent time. The general public was more concerned about the Millennium Bug than the possibility of online scams.
Into the 2000s, tech literacy was growing, as was consumer savviness. The internet was expanding and becoming faster, more capable, and more sophisticated. Online gambling was growing too, as was the pressure on lawmakers to take action to manage it. It was at this point that Canada and the US took diverging paths.
The Canadian approach was generally to allow provinces to conduct and manage gambling activities as they saw fit. Provinces began launching government-operated online gambling platforms, offering players a safe and trustworthy destination to gamble online. In contrast with the emerging regulatory environment in the US, Canada’s approach was relatively permissive. This created a more stable foundation for online gaming, although as we have seen in recent years, the provincial model stands to be updated.
South of the border, a more restrictive approach was being adopted. In 2006, the Unlawful Internet Gambling Enforcement Act targeted payment processing for unlawful online gambling, making it more difficult for operators to serve American customers. As a direct result of this hostility, many major online gambling companies withdrew from the US market.
The 2010s marked the beginning of regulated online casinos in North America. Regulation shifted from a federal issue to a state-by-state model, and so, states began creating their own legal online gambling markets. New Jersey was an early adopter, keen to get in on iGaming early and offer its residents access to online casino gaming and poker.
A major turning point came in 2018, when the US Supreme Court struck down the Professional and Amateur Sports Protection Act. Up until this point, PASPA had prevented states from legalizing sports betting. It’s being declared unconstitutional was a game-changer that triggered a wave of gambling expansion across the country.
Many casino brands and sports betting operators merged their platforms into integrated gaming ecosystems, establishing themselves as competitive one-stop shops for all things online gambling. As competition grew between operators, these methods of differentiation and offering more convenient services became pivotal to their success.
The same technology that was used for online sportsbooks helped to improve the consumer experience at online casinos. Innovations in mobile gambling, digital payments, live dealer games, and real-time wagering all helped to modernize online casinos, making them more immersive and accessible for a larger audience of players.
Canada‘s landmark moment came in 2021, when Bill C-218 was passed, permitting provinces to offer betting on single sporting events. A year later, Ontario launched its regulated open-market online gambling system, allowing private operators to obtain licenses and compete legally.
Ontario’s model became one of the most significant regulated online gambling markets in North America, attracting major international brands and providing stronger consumer protections, spawning a prosperous market as demonstrated on Casino.org Ontario. It’s no surprise, then, that Alberta decided to follow suit, launching its own competitive online casino market earlier this year.
Today, the North American online casino landscape is defined by tech innovations that have improved convenience, helping iGaming blend more seamlessly into players’ everyday lives. Mobile-first gaming is now commonplace, as many consumers prefer to play on the go in smaller, but more frequent bursts. On the player-facing side of the casino, AI is driving personalization. Behind the scenes, it is being used to streamline and reinforce financial and consumer protections.
Nostalgia for the traditional brick-and-mortar casino still resonates, as evidenced in the rise of live dealer studios. By investing in better filming set-ups, operators have been able to craft more immersive and evocative experiences. Development studios are increasingly taking inspiration from popular culture, as the lines between traditional computer gaming, streamed entertainment, and online gambling become thinner.
From the early days of offshore operators serving players in a legal grey area, to today’s heavily regulated markets, the industry has undergone a dramatic transformation. While the US remains a patchwork market where legality varies by state, Canada generally operates under provincial authority within a federal framework.
Looking ahead, further expansion of regulated online casinos appears likely. States such as Virginia, Illinois, New York, and others continue to debate iGaming legislation, while Canada’s recent successes could encourage provinces like British Columbia or Quebec to consider modernizing their own online gaming frameworks in the years ahead.
However, the next phase of growth will not be without challenges. Policymakers must balance revenue opportunities with concerns surrounding responsible gambling, market competition, advertising standards, data security, and the management of unregulated offshore operators. Tribal gaming rights in the US and differing provincial approaches in Canada may also complicate future reforms.
Ultimately, the continued success of online casinos in North America will depend on regulators’ ability to create frameworks that encourage innovation while maintaining robust player protections and public confidence in the industry.
