A study in the Canadian Medical Association Journal (CMAJ) highlights the mounting exposure of Canadian youth to gambling ads, particularly those promoting sports betting. “Protecting Canada’s youth from the risks of exposure to gambling advertising” warns that unchecked marketing poses a significant public health risk to young people and says urgent regulatory action is needed to mitigate harm.
Since the legalization of single-event sports betting in 2021, Canada’s gambling landscape has undergone a massive transformation. What was once a largely underground market has exploded into a multi-billion-dollar industry fueled by easy access to mobile betting, partnerships with major gambling leagues and a surge in younger participants.
According to Statistics Canada, 64.5% of Canadians aged 15 and older reported participating in some kind of gambling in the past year. That’s almost 19 million people. A Leger poll found that there are over six million Canadian sports bettors alone.
The serious public health risks underscored by the CMAJ study are closely intertwined with substantial financial risks.
The odds of winning are not in the bettor’s favour. In fact, the house edge in sports betting is about 5.4%. That means someone who bets $1,000 is losing about $54 on average.
Of course, losses can be much greater. In some cases losses lead to continued gambling, often with increased wagers after a sequence of losing bets. Studies show that few bettors consistently win. Most eventually lose more than they expect to.
Betting on their future
While many young Canadians enjoy sports betting and some even win occasionally, how does this habit compare to a disciplined investment strategy over time? Let’s run a scenario for a 25-year-old who currently spends $1,710 a year (approximately $33 a week) on online gambling.
That is the average loss per online account, according to iGaming Ontario. It’s a calculation of total wagers after accounting for wins and losses.
What if that person chose to invest the money instead?
Over 10 years, the investor could accumulate $22,584, in nominal terms, assuming a 5% annual return. That’s more than $5,400 in gains above their contributions. Over 20 years, that same amount invested would yield $59,370, representing more than $25,000 in investment growth.
Meanwhile, a gambler’s total losses over that same 20-year period would amount to $34,200, on average. Combining projected losses with potential return, that is a delta of more than $94,000.
Implications for advisors
Advisors have a key role to play in helping younger clients recognize the long-term financial impact of regular sports gambling, even when the amounts seem modest. These expenses are often framed as entertainment or discretionary, but over time they can quietly undermine wealth-building goals.
By engaging clients in conversations about opportunity cost and showing how small amounts redirected into investments can generate meaningful long-term returns, advisors can reinforce the value of financial discipline.
This is also an opportunity for the investment industry to demonstrate its relevance to a younger generation through advice and guidance that connects financial behaviours today with outcomes tomorrow.
Ian Bragg is vice-president of research and statistics at the Securities and Investment Management Association