What’s Holding Quebec Back From a Competitive Betting Market?

While 73% of Quebec residents play on offshore sites, the province loses more than $300 million in tax revenue each year. As a result, in February 2026, the Quebec Online Gaming Coalition (QOGC) submitted an official release to the provincial government calling for the launch of a competitive market with privately licensed operators, similar to the iGaming model in Ontario. Coalition members include major industry players such as DraftKings, Flutter, Bet99, Betway, and others.

Meanwhile, Alberta is preparing to launch its own open market in 2026 and recently published new standards, which we covered here. Ontario, for its part, recorded CA $3.2 billion in gross gaming revenue from private operators in 2024–2025 – 32% more than the year before. The province successfully shifted 83.7% of players from illegal sites to regulated platforms. So what is preventing Quebec from repeating this success?

How the Loto-Québec monopoly is slowing progress

Quebec was the second jurisdiction in North America to launch online gambling – the Espacejeux platform went live back in December 2010, long before Ontario opened its competitive iGaming market. In theory, the province had a 12-year head start to capture the sector. In reality, the outcome has been far less impressive. Loto-Québec is the only legal online betting and casino operator in the province. This state corporation both runs the Espacejeux casino platform and the Mise-o-jeu sportsbook, and effectively acts as the market regulator at the same time. The conflict of interest is obvious: it is difficult to regulate fairly when you are also the sole service provider.

The results of this monopoly speak for themselves. According to QOGC data presented in February 2026, 73% of Quebec players prefer offshore platforms over the government site. That means the overwhelming majority of residents place bets on unlicensed websites that do not pay taxes to Quebec, do not follow Canadian player-protection standards, and operate outside provincial jurisdiction. Loto-Québec is trying to address the issue through a site-blocking system designed to restrict access to illegal operators. In practice, however, it has proven ineffective – players easily bypass restrictions using VPNs and continue betting where conditions are better: with stronger odds and wider market selection.

A telling detail: although Loto-Québec’s online gaming business is growing (company president Jean-François Bergeron reported a 17% increase), the pace is much slower than in Ontario, where competition drives innovation and service quality. QOGC representative Ariane Gauthier notes a paradox: adjusted for inflation, Loto-Québec’s real revenue has actually declined compared to 2006. That year, the province received $1.6 billion from the state operator – about $2.4 billion in today’s dollars – yet current annual revenue remains around $1.5 billion. The market is expanding, but provincial income is flat – a clear sign of monopoly inefficiency.

What exactly the Quebec Online Gaming Coalition is calling for

In its release submitted to the Ministry of Finance, the Quebec Online Gaming Coalition outlined four key recommendations to modernize the province’s online gambling market.

1. Create an independent regulator. The coalition calls for regulatory and operational functions to be separated. A new independent body should supervise all operators – both private companies and Loto-Québec. This would remove the conflict of interest where one organization sets the rules and follows them itself. The Ontario model has proven effective, where the Alcohol and Gaming Commission of Ontario oversees the market, while iGaming Ontario manages commercial agreements with operators.
2. Establish a consultation forum with all stakeholders. QOGC proposes a permanent platform for dialogue among government, operators, Indigenous representatives, problem-gambling researchers, municipalities, and the gaming industry. Such a forum would ensure that policies and standards reflect broad input rather than closed-door decisions.
3. Introduce a licensing system with mandatory revenue sharing. The coalition suggests a transparent licensing framework for private operators with clear approval criteria. The key element is a revenue-sharing model similar to Ontario’s, where operators contribute 20% of gross gaming revenue (GGR) to the provincial treasury. This structure is competitive enough to attract leading global brands while still delivering steady budget revenue.
4. Direct additional revenues to social programs. QOGC insists that all extra funds generated from regulating private operators should be allocated to gambling-addiction prevention, support for at-risk players, research into responsible gambling, and assistance for vulnerable communities. This is an important step in addressing ethical concerns about market liberalization.

The coalition emphasizes that the goal is not to dismantle the current system but to evolve it. Loto-Québec could continue operating in an open market – simply on equal terms with other licensed companies.

Potential economic benefits of launching a regulated market in Quebec

When governments evaluate any large-scale policy change, financial impact plays a decisive role. Supporters of market liberalization have a strong argument here: Quebec is losing more than $300 million in potential tax revenue every year.

This figure is not a rough guess. It is based on a proportional comparison with Ontario’s results. In the 2024–2025 fiscal year, Ontario generated $3.2 billion in gross gaming revenue from private operators. With a 20% tax rate, that delivered about $640 million to the provincial budget. With a population roughly 60% the size of Ontario’s, Quebec could expect proportionate returns – hence the estimate of $300+ million annually.

An important point: Ontario’s experience shows that opening the market to private operators does not collapse the state operator’s revenue. Ontario Lottery and Gaming Corporation (OLG) continues to generate about CA $2 billion per year – roughly the same level as before the competitive iGaming market launched in 2022. The market does not shrink – it grows when players are given more choice.

Political realities and possible market opening timeline in Quebec

Economics says one thing – politics often says another. And here, open-market advocates in Quebec face a complicated environment.

The ruling Coalition Avenir Québec (CAQ), led by Premier François Legault, has historically opposed opening the market to private operators. Their position is that the Loto-Québec monopoly protects players from aggressive advertising. CAQ representatives frequently cite concerns about rising problem gambling among young people.

However, the political landscape is shifting. Polls show CAQ losing support, while the Parti Québécois leads with 33% compared to CAQ’s 22%. Provincial elections are scheduled for October 2026, and a new government could be more open to iGaming market reform.

Ariane Gauthier of QOGC stresses that the coalition is in dialogue with all major political parties, not just the opposition. The goal is to include online gambling regulation in each party’s election platform. When policymakers see that $200–300 million in annual revenue is at stake, resistance may weaken.

There are also obstacles. Loto-Québec labour unions fear job cuts. Some Quebec nationalists view market liberalization as an “anglicization” of the industry – although the coalition clearly states that all operators would be required to provide full French-language service. Certain public organizations oppose any gambling expansion on ethical grounds.

The most realistic scenario looks like this: after the October 2026 election, the new government – or a re-elected CAQ under economic pressure – announces public consultations on online gambling reform. These consultations would last several months and help address the strongest objections. Next would come legislative drafting and the creation of regulatory bodies. Market launch could follow in late 2027 or the first half of 2028.

What market opening could mean for Quebec bettors

If Quebec ultimately follows the path of Ontario and Alberta, what would actually change for regular bettors in the province?

• A better choice. Instead of a single government site with limited functionality, players would gain access to dozens of licensed operators already active in Ontario. That means a much wider range of betting markets, more competitive odds, and higher-quality mobile apps.
• French localization. All licensed operators would be required to provide full French-language support – from website interfaces to customer service. This aligns with the needs of Quebec’s francophone majority and the province’s cultural priorities.
• Canadian payment methods. Legal operators would integrate with Canadian banks and payment systems, enabling fast deposits and withdrawals through Interac and other familiar options – no currency-conversion issues or payout delays common on offshore sites. We previously explained how reward payment systems work in a separate article.
• Real protections. Players would be able to set deposit and betting limits. They would have access to a provincial self-exclusion program. Game fairness would be ensured through regular audits. Disputes with operators could be resolved through the provincial regulator. These are standard safeguards not available on illegal platforms.

For those already using offshore sites, access to betting would not change. But they would be able to do so legally and with proper safeguards in place. For those who avoid the provincial platform because of its limitations, many new options would open up.

Quebec remains the last major unopened market in the country. With a population of nearly nine million and a strong interest in betting, the province could become a second Ontario in scale. The question is not whether the market will open, but when it will happen and how long Quebec policymakers can ignore the numbers and the proven results in other provinces.

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