The Size of North America's Gambling Entertainment Industry

The North American gaming market, encompassing the United States, Canada, and Mexico, is a huge business that contributes significantly to the economy and tourism of each country.

The market involves both casino gaming and sports betting, with growing online gambling activity.

Here, we will compare the size of these industries in both nations, their growth rates, and the impact of tourism, and we will try to compare them to see how they differ.

An Overview of the North American Market

The North American gaming industry is highly diverse, with the United States being the most significant player. The American Gaming Association estimates the U.S. gaming industry at approximately $240 billion and puts its employee count at over 1.7 million across 40 states.

Commercial and tribal casinos and sports betting are factored into this count. Sports betting, which has seen a rapid growth since the Supreme Court in 2018 licensed states to legalize sports betting, is also factored in.

Canada’s market is smaller but is still important, with a focus on both traditional brick-and-mortar casinos and internet-operated ones. While Mexico’s market is more limited due to increased control, though online gambling is attracting growing interest due to it’s accessibility.

It is exactly this accessibility that continuously attracts new users, but promotions and bonuses also play a considerable role. A good example is the one of Spin Casino online, soon launching in Canada, offering a wide range of games and sign-up bonuses for new players.

Size Comparison

Based on size, from the largest to the smallest market, they rank as follows:

United States: The biggest North American gambling market considering the population numbers. Its market size is significantly larger than that of Canada and Mexico combined. The U.S. boasts a well-established casino market, with giants such as MGM Resorts and Caesars Entertainment. Sports betting is also one of the biggest revenue earners following legalization in the majority of states and the popularity of world-renowned leagues like the NBA, NFL etc.

Canada: A prominent gaming market, with a dense concentration of land-based and online casinos. The country has seen growth in online operators offering their services, with major players like 888 Holdings and Bet365 having a considerable presence in the country.

Mexico: The gambling industry of Mexico is not as developed and regulated in detail as the other two countries. There are some land-based casinos, but there are strict regulations that limit the industry’s growth. However, there are possibilities for growth in internet gambling.

Impact on Tourism

Tourism plays a significant role in the gambling industries of these countries, with resorts drawing millions of visitors annually. But how did the countries take advantage of it?

In America, places like Las Vegas and Atlantic City have millions of visitors every year and contribute significantly to the economy. It is estimated that the U.S. has over 1,500 casinos included in resorts that also provide accommodations, dining, and recreational activities like golf or skiing.

Tourism in Canada is also aided, primarily in places like Montreal and Vancouver. While there isn’t a precise figure for casino resorts, it’s estimated that there are around 20 to 30 significant ones offering both accommodation and gaming.

Mexico’s general tourism industry is massive, second to the US, but, for the time being, does not attract as much gambling tourism traffic as America and Canada. With the previously mentioned regulations in place, the estimated number of casino resorts is fewer than 10, and about 20 larger and more significant standalone casinos in tourist areas like Cancun and Puerto Vallarta.

Projected Growth and Internet Gambling

The fastest-growing segment in the gambling industry in North America is internet gambling, which started with the rise of mobile devices and faster internet speeds.

The United States and Canada lead the way with this growth, with the United States seeing phenomenal expansion since sports betting has been legalized in many states. Canada’s online sector is also thriving, with a strong regulatory landscape supporting its growth.

In terms of overall development, the U.S. is still the most dominant because it has a huge market size and the fastest growth of sports betting. However, Canada sees more rapid growth in online gambling because of growing internet penetration and regulatory favor.

In Mexico, the online gambling sector is experiencing accelerated growth, particularly due to recent regulatory changes affecting land-based casinos. The industry predicts a 70% increase in revenue over the next three years, driven by players shifting to online platforms and away from physical ones. A growing acceptance of sports betting can also be seen in Mexico, particularly in football and horse racing.Overall, the United States dominates the North American gambling market due to its size and diversity, as well as its level of development.

Canada is second in line, with a heavy focus on online gambling, while Mexico has the most potential for future growth.

The tourism generated by these industries is high, and it adds to local economies, including employment. With online gambling increasing more and more, it will be a significant factor in the future growth of the industry in all three countries.