Online Casinos Have “Eaten” Almost Half of the Video Game Market
If just a couple of years ago a Friday night for most people meant a session in Fortnite or Call of Duty, today more and more users prefer spinning slots or building accumulators on their favourite hockey team. And this isn't just a personal observation.
A fresh report from Epyllion titled State of Video Gaming 2026 delivered figures that could make traditional game developers' eyes twitch. Online casinos and sports betting are literally "biting off" a massive slice of the entertainment industry pie. Let's break down how gambling has come to nip at the heels of traditional gaming, and what's really behind it.
Gamers Swapping Gamepads for Slots? The Hard Numbers from the Epyllion Report
In 2019, revenues of legal online casinos worldwide looked impressive, but not alarming, around $11 billion. Fast-forward to 2025, and that number skyrockets to $54 billion.
According to Epyllion, those $54 billion account for nearly 45% of all global spending on video games (excluding China, with its specific and closed market). This means that almost half of the money people used to spend on buying new games, skins, battle passes, and loot boxes is now smoothly flowing into the iGaming sector. Nearly fivefold growth in six years isn't just a spike, it's a full-blown paradigm shift in the entertainment industry.
What Is GGR and Why Are These $54 Billion So Important?
When talking about these billions, it's important to understand the terminology. The report uses the abbreviation GGR (Gross Gaming Revenue). Put simply, this metric does not represent the total amount of money players deposit.
GGR is gross gaming revenue, the difference between the total amount wagered and the total winnings paid out.
In simple terms, it's the money casinos "keep" after all the lucky players collect their wins and everyone else closes their tabs with a zero balance. And the fact that the industry's net result reaches $54 billion speaks to the colossal volume of money circulating there.
Why Is the iGaming Market Growing So Fast?
So why are people leaving traditional video games for casinos? There's no single reason. It's a mix of technology, psychology, and regulatory changes.
Gamification: When a Casino Starts to Feel Like an Arcade
Modern slots no longer resemble the old "one-armed bandits," where you just pulled a lever and waited for three cherries. Providers are actively implementing elements of classic video games. Levels, achievements, complex bonus rounds, and even storylines are becoming the norm.
Crash games like Aviator or Spaceman have practically erased the line between a reaction-based arcade game and gambling. You decide when to press the button to cash out. This creates an illusion of control that gamers know all too well. How does this work? Very simply: your brain gets the same dopamine hit from interaction—but amplified by real financial risk.
Legalization and Convenience
In 2019, online casinos in many regions were still stuck in a "gray" area. By 2025, the situation had changed dramatically. Markets are becoming regulated, strict licenses are being introduced. Playing has become easier: no more hunting for shady mirror sites. A couple of taps on your smartphone—and you're already at a live dealer table while riding the subway.
Sports Betting Is Breaking Records (and Esports Is in the Game Too)
If $54 billion from casinos doesn't impress you, take a look at online sports betting. In 2025, this sector generated $69.7 billion in GGR. Of that amount, $17 billion came from the U.S. market alone, where legalization of betting has been advancing rapidly in recent years.
Interestingly, some gamers don't just quit video games, they start betting on them. The growth of esports (Dota 2, CS2, League of Legends) has turned former active players into active spectators and bettors. Why sweat through a match yourself when you can put $20 on your favourite team and watch a tournament final with double the adrenaline?
How Does This Global Trend Affect Canadian Players?
For the Canadian market, these global figures are highly indicative. Gaming has always been popular in Canada, but gambling is keeping pace. Regulation in the country strongly depends on the province (is it legal in Canada? Yes, but with nuances). For example, Ontario has had its own open and strictly regulated market since April 2022. Other provinces, such as British Columbia or Quebec, operate through state platforms (PlayNow, Espacejeux) while still not banning offshore sites.
For Canadian players, this industry boom means two things. On the one hand—more high-quality products. Providers compete for attention by offering strong CAD support, integration with Interac and Instadebit, and localized content. On the other hand—more advertising and more temptation.
Gambling vs. Gaming: Should the Video Game Industry Be Worried?
Definitely yes. Video game publishers need to acknowledge that online casinos have become their direct competitors for the free time and wallets of users aged 18+.
But it's crucial to remember one key thing: video games are bought for entertainment, while many people (mistakenly) go to casinos for easy money. We always emphasise this: casinos are not a way to earn money. They are a paid service that delivers thrills. And if that service costs the industry $54 billion a year, it means players themselves are paying for those emotions.
Verdict
Amanda Shimmer is the Chief Editor at CasinosInCanada and an experienced casino expert who ensures all guides, reviews, and industry investigations remain accurate, transparent, and helpful for players.
Nothing terrible about that.
So what’s the problem? After work I like spinning a couple of slots with a beer - it relaxes me way more than sweaty Dota matches with screaming, toxic school kids in voice chat. Lost a thousand, won a thousand - I’m just paying for emotions.
Fucking gambling addicts are going to ruin the industry(( soon it’ll be nothing but gacha and roulette instead of proper AAA games - devs will realize story-driven games just aren’t profitable.