Canada and the US are two of the biggest gaming markets globally, across videogames, mobile games and online casinos. Often they are lumped together as North America. However, that is increasingly changing because doing so overlooks some of the big differences between their shared gaming cultures, that have been evolving alongside each other for the past four and a half decades.

Today the USA dominates Canada’s gaming revenue. US companies make north of $60 billion annually, possibly up to $100 billion depending on market definitions, while Canadian game developers bring in the far less but still significant figure of around $10 billion a year. However, interestingly, Canada can lay claim to having made (arguably) the first ever video game. This article will look at some of that history, how things look today and where the sectors might go in the future.

Shared Gaming History and The Biggest Developers

The first ever interactive digital game was invented by Canadian engineer Josef Kates for the 1950 Canadian National Exhibition. Bertie the Brain allowed people to play tic-tac-toe against an algorithm, using lightbulbs to make the patterns of the grid. It was disassembled after two weeks, and didn’t cause much of a splash internationally. Only a couple of years later, what everyone agrees were true video games emerged, using cathode ray tube displays or general purpose computers.

While early systems were made in the UK in the 1950s, but first widely distributed commercial video game can be claimed by an American. Nolan Bushnell and Ted Dabney, who would later go on to found Atari, created the first commercially available arcade cabinet Computer Space in 1971.

By the 1980s videogames were booming, and the rest is history. Today the industry is a multibillion dollar sector across North America.

Ubisoft Montreal is the biggest of the several hundred large game development studios in Canada, although is a subsidiary of the French company Ubisoft. The company is globally known for producing game series like Splinter Cell, Assassin’s Creed, Far Cry and Rainbow Six. It employs over 4000 people in its Montreal offices alone.

One of the largest videogame developers in the USA today, and thereby the world, is Star Wars Galaxy of Heroes maker Electronic Arts. It made $7.5 billion in net revenue in 2025. As well as Star Wars games EA is also hugely popular for its sports division which makes games for soccer, as well as the NHL and the NFL.

Online Casinos Are Popular Across Borders Although Regulations Differ

Online casinos are a part of gaming that aren’t often discussed alongside video games, but they’re arguably just as big of a deal business wise.

For example, you’ll find a vast choice of online casino options on Casino.ca, demonstrating how much interest their is in casino gaming from Canadian players and from operators. These review sites gather expert and player opinions, as well as data and stats on bonuses and payment options, which shows just how seriously players take their choices in a competitive market.

If that’s not enough, just look at the numbers. The Canadian online casino market made $3.5 billion in revenue in 2025, although that is an estimate because many platforms remain based offshore. Meanwhile the US online casino sector made $10.5 billion from state regulated sites alone, with the offshore operators potentially matching that or more.

In Canada, only two provinces have locally-regulated online casino gaming. Ontario, since 2022, and Alberta which launched its market in 2026. In the US eight states have licensed online casinos, although the majority of players and revenues come from these five – Connecticut, Michigan, New Jersey, Pennsylvania and West Virginia.

Interestingly sports betting remains vastly more popular with gamblers in the US, while online casinos are a bigger business in Canada.

Trends and Predictions for the Future of the Market

One of the biggest cross-border trends between video games and casino gambling is the further blurring of lines between the two. Social casinos, esports betting, loot boxes and other gambling style monetization in mobile games – expect the sectors to continue to converge, unless regulators in either country intervene.

However, right now, gambling regulators in America specifically (although rumblings in Canada are growing) have their hands full with prediction markets. Although it can be argued platforms like Kalshi have gamified financial trading, plenty of other people think they’re gambling – and that argument will soon be playing out in the Supreme Court.

The rise of AI will also effect both the video game and casino gaming business, although the US is a much larger player in this than Canada also. Algorithms and AI monitoring can be used to detect cheating or fraud in both sectors, while also possibly enhancing the capabilities of those looking to abuse systems.

Overall, digital gaming from mobiles to online casinos to videogames will likely continue to expand in the coming decade, but regulation will be key to how things move in both Canada and the US.