Gambling Bankruptcies QUADRUPLE with Online Betting in Ontario

Ontario is becoming one of the clearest warning signs in the world with regard to the hidden costs of widespread, legalized online gambling.

Since the launch of private online casinos and sportsbook apps, gambling-related bankruptcies in Ontario have skyrocketed, with filings linked to gambling now more than quadrupling in just a few years. It started as a push to modernize betting, eliminate illegal and “gray” markets and generate revenue, but has rapidly grown into a serious public health concern, leaving thousands with financial debt and gambling addictions.

As the U.S. continues to expand access to mobile sports betting and online casinos, Ontario offers a look into what can unfold when gambling becomes available 24/7 through a smartphone. Below, we break down the data behind Ontario’s bankruptcy spike, how these trends compare to the U.S. and what help is available when gambling begins to spiral out of control.

Impacts of online gambling being realized in Ontario

Ontario opened its market to private gambling operators in 2022. In 2025 alone, 604 Ontarians cited gambling as a cause of financial distress leading to bankruptcy, a 330%+ increase (more than 4X) compared to 2021, before online gambling launched. Front-line financial counselors say this number understates the true scale because many people feel too ashamed to directly disclose gambling as the root cause.

Last year, Ontarians wagered $82.7 billion across provincially regulated iGaming platforms. (Yes, the same figure that’s reported to be Netflix’ bid for Warner Bros. Discovery.) Operators reported $3.2 billion in gross gaming revenue, and the Ontario government took 20% of that total in taxes, with projected public revenue of $253 million in 2025-26.

One Ontario woman, “Mary,” lost $55,000 in six months using the BetMGM app after receiving a referral bonus. She estimates losing $500,000 over three years through a combination of casino and online gambling. She described how mobile gambling turned her phone into a “casino in her pocket,” allowing her to bet anytime, anywhere, even from bed.

Reportedly, 80% of gambling problems in Ontario now stem from mobile sports betting. The ability to make hundreds of rapid “micro-bets” during a single game (everything from the next drive outcomes to live over/unders for player props) creates a similar feedback loop to slot machines.

History of Online Casino and Sports Betting legalization in Ontario and Canada

Ontario

Ontario’s modern iGaming market began to take shape in 2021, when the federal government decriminalized single-event sports betting. In April 2022, Ontario became the first province to allow private gambling companies to operate legal online casinos and sportsbooks.

Instead of a single government lottery commission controlling gambling, Ontario now allows players to gamble on 82 different websites operated by 48 private companies, with 35 of those offering sports betting.

Other provinces in Canada with legal online gambling

Outside of Ontario, most Canadian provinces still operate gambling through government-controlled lottery and gaming corporations. Quebec, British Columbia, Alberta, Manitoba and others offer legal online gambling through their own platforms.

Alberta is preparing to launch a private operator iGaming model similar to Ontario’s, with plans for self-exclusion tools that Ontario currently does not have.

How Ontario’s gambling impacts compare to those in the U.S.

What Ontario is experiencing resembles some trends already appearing in the United States as online betting expands.

In the U.S., sports betting is now legal in 39 states, with Missouri having gone live on December 1, and online casinos live in seven states. Recent data around gambling’s impacts shows similar financial fallout:

• 24.9% of sports bettors report being unable to pay a bill because of gambling, including rent.
  
  

• 30% of bettors admit carrying gambling-related debts.
  
  

• More than 15% have taken out personal loans to gamble, while 12% have used payday loans.
  
  

• 52% carry month-to-month credit card balances linked to gambling behavior.

  
  

In states legalizing online gambling (mobile sports betting and/or casinos), credit scores drop by nearly 1%, bankruptcy filings rise by 25-30% within four years, and there are higher rates of debt collection and auto loan delinquencies.

Gambling Addiction treatment and financial counseling services

Long before bankruptcy, individuals may max out credit cards, take out payday loans, drain retirement accounts or ask family members for bailouts. Front-line counselors in Ontario report seeing lines of exhausted credit, payday loans used to chase losses, RRSPs and pensions cashed out, pleas from family for money.

Early intervention into gambling addiction can prevent bankruptcy, relationship damage and long-term financial trauma. 

Birches Health provides confidential virtual treatment for gambling addiction, including support for individuals facing financial debt from sports betting and online casinos.

To learn more or get started with Birches Health today:

Book an appointment now
Call 833-483-3838
Email help@bircheshealth.com