While it’s possible to play slot games for free, many Canadians prefer playing for real money. The amounts that players spend depend on how well they are doing financially. This, in turn, depends on how well the economy is doing. Indeed, economic trends affect how people spend on everything, from food to online slots. This article examines the economic effects on slot gambling spending in Canada.
Inflation & Cost of Living
There is an inverse relationship between inflation and slot gaming spending. This simply means that higher inflation leads to lower spending on slots, and vice versa.
When inflation rises, it pushes up the cost of everyday goods and services. Prices of essential things like groceries and gas increase. As such, Canadians spend more money to maintain their standards of living, thus reducing their disposable income.
The natural response for most people is to cut back on non-essential things, such as slot games. Some players try to cope by placing smaller wagers on their bets. However, others cut back entirely. They can stop playing slots altogether or start playing the demo modes, which are free.
Interestingly, players who used to play slots at brick-and-mortar casinos can switch to online casinos and continue playing for real money. The switch from land to online casinos helps them save money on expenses like transport and accommodation. Moreover, they can take advantage of bonuses, which are plenty at online casinos but few at land-based ones.
Employment & Disposable Income
More job openings across various industries open up when the economy does well. This creates more employment opportunities, giving more Canadians sources of regular income. With more people getting paid and more money circulating, many people have enough disposable income to spend on non-essentials like slot gaming. Moreover, they can afford to absorb regular losses and still continue playing for real money as long as their income is regular.
In contrast, a downturn in the economy usually results in mass layoffs as employers try to cope with lower revenues. This leaves fewer people with access to regular income, including many slot players. As such, they lack the money to sustain their gambling habits. Some try to cope by playing less often to save money. Others stop playing altogether or switch to demo games.
Interestingly, one of the curious economic effects on slot gambling is that unemployment can lead some people to gamble even more. Many double down on gambling with hopes of winning enough money to replace their lost source of income. Unfortunately, it doesn’t always work, unless you are a professional, experienced gambler.
New & Higher Taxes
First, it is worth noting that Canadian provinces don’t tax winnings from casual gambling, only from professional gambling. However, unlike players, operators are subject to taxation. Tax erodes operators’ profit margins, and they can decide to make up the difference by reducing slot payouts. This in turn makes slots less enticing to play, especially for Canadians playing mostly for profits rather than fun.
Fortunately, taxes for the gambling industry in Canada haven’t changed much over the past. However, this may change as time goes by, considering how fast the industry is growing. More provinces will introduce new taxes when they open their doors to private casino operators. Hopefully, the increased revenue will offset the additional taxes.
It is also worth noting that further downturns in the economy can lead to higher gambling taxes. Of course, the national and provincial governments would want to exploit the industry’s growth. It would be a welcome source of additional revenue to help plug shortfalls in revenue from other more critical industries.
Does Everyone React the Same Way?
So, does everyone stop playing slots when the going gets tough? Not necessarily. Many people respond in the same ways, but there are differences between demographics.
The older generation is more resilient against economic downturns. Many elderly are financially secure after many years of working and saving/investing. To this end, they can easily absorb small disruptions in the economy, such as increased inflation and unemployment rates. They still have enough money stashed away to continue playing their favorite slots. In fact, many elderly people prefer playing at land-based casinos to online casinos.
In contrast, the younger generation is more susceptible to economic downturns. Younger people are not as financially secure as Boomers and Gen X. As such, they must review their spending when the economy starts struggling. Many don’t hesitate to cut back spending on entertainment, which includes playing slot games. Interestingly, people who used to play at land-based casinos started switching to online casinos to cut back on expenses and take advantage of bonuses. Moreover, many players also switch from real-money slots to demo slots and social casinos, preferring to play for fun instead of money.
The Present & Future of Slot Game Spending in Canada
The Canadian casino industry is currently doing very well. It is growing exponentially, and forecasters predict sustained growth for the foreseeable future.
However, it is worth noting that the Canadian online casino industry is relatively new. Ontario was the first province to legalize online gambling in 2022. It is also fractured, as the different provinces independently regulate online gambling within their borders. Online gambling is legal across all other provinces, but they don’t allow private casino operators. However, this is set to change, as provinces like British Columbia are taking a leaf from Ontario.
Based on data from Ontario, the Canadian online gambling industry generated CA$22.7 billion in Q3 2024-2025. This was the highest amount on record, a 32% increase from Q3 2023-2024. Notably, this data doesn’t include revenues from other provinces where online gambling is just as popular. However, it serves to demonstrate just how fast the online gambling industry is growing.
The future looks bright for the industry, as more people are projected to start playing slots and other casino games. Statista projects that the player base will grow to about 22.7 million people by 2029. Additionally, the overall casino industry’s revenue is projected to grow to US$9.57 billion by 2027.
Notably, Statista links the exponential growth of the Canadian gambling industry to various economic factors. Most notably, it credits the increase in employment levels and disposable income among everyday Canadians. More disposable income enables people to spend more on digital entertainment, including slots. Statista also highlights the explosion of digital entertainment platforms, which include online casinos. Notably, Canadians regularly gamble at offshore casinos and have been doing so long before Ontario legalized online gambling.
Conclusion
The economic effects on slot gambling spending are exactly as you would expect. When the times are good, Canadians spend more money on slots. However, bad times lead to lower spending.
For many Canadians, slot gaming is simply a form of entertainment that they can afford when they are financially stable. To this end, positive economic trends enable people to play slots more, as they have more money to spend. However, economic downturns cause most people to keep off slots in a bid to save money.
