Tariff Disputes and Costs Drive Canadians Away from U.S iGaming

A mix of economic pressures, high costs, and evolving preferences is leading more Canadians to reconsider travel and gaming options in the United States. According to Flight Centre Canada, bookings to popular U.S. destinations such as California, Florida, and New York have declined for the fifth consecutive month, with ripple effects seen in the broader entertainment and gaming sectors, including the iGaming industry.

Flight Centre Canada, one of the country’s largest travel agencies with over 200 locations, recently released data confirming a significant drop in Canadians’ interest in traditional U.S. travel. The trend is reflected in government statistics and is tied to factors such as a weaker Canadian dollar, ongoing trade tariff battles, and steep inflation in travel costs. “Canadians are moving away from quick, familiar trips to the U.S. and instead seeking lifestyle-driven, meaningful travel experiences abroad,” said Amra Durakovic, spokesperson for Flight Centre Canada. “Destinations like Lisbon and Tokyo are rising in popularity, while U.S. favourites are taking a backseat.”

 

• Canadian bookings to popular U.S. destinations have declined for five consecutive months, driven by rising travel costs, a weaker Canadian dollar, and ongoing tariff disputes.

• Interest in international travel to Europe, Asia, and South America is growing, alongside a rising appetite for cruise vacations and nature-based, cultural experiences.

• The shift away from U.S. casinos is complemented by increased engagement with regulated iGaming platforms, offering Canadians convenient, cost-effective alternatives to traditional gambling.

 

Economic and Political Factors Impacting Travel and Gaming

The ongoing tariff disputes, largely linked to past U.S. trade policies, combined with a soft Canadian dollar, have contributed to increased travel costs, dampening Canadians’ appetite for U.S. vacations. This has had a notable impact on tourism hubs like Las Vegas, where visitor numbers dropped 11.3% year-over-year in June, despite a modest rebound in casino revenue.

Las Vegas’s tourism slump is also driven by inflated expenses—resort fees, expensive buffets, and premium prices for basic amenities—that have deterred many Canadian travelers. Historically a top destination for entertainment and casino gaming, Las Vegas is now seeing Canadian visitors divert their leisure dollars elsewhere.

In parallel, the rise of iGaming platforms — online gambling sites offering casino games, sports betting, and poker — is altering how Canadians engage with gaming entertainment. With travel to U.S. casinos becoming less attractive, more Canadians are turning to regulated online gaming options within Canada and other international markets. These platforms provide convenient access to popular games without the need for costly travel or exposure to inflated resort pricing.

From U.S. Casinos to International Experiences

Flight Centre’s research suggests that Canadians are prioritizing travel that offers cultural enrichment, natural escapes, and wellness. A YouGov survey conducted for the agency revealed that 56% of Canadians travel to experience new cultures, 52% seek nature-based vacations, and 58% use travel as a means to de-stress. Europe remains a top destination with cities like Athens, Dublin, London, and Paris leading bookings. Other emerging markets include Argentina, Australia, Japan, Mexico, and South Korea — destinations supported by improved air connections and favourable currency exchange rates.

Cruising is also gaining popularity, with 42% of Canadians indicating they plan to book a cruise holiday this year. Mediterranean routes through Greece, Italy, Morocco, and Spain top demand, alongside trips to the British Isles, the Galápagos Islands, and the South Pacific. “Rather than abandoning the U.S. entirely, Canadians are expanding their horizons — both for travel and gaming,” Durakovic said. “Online gaming offers a fresh, accessible alternative for casino enthusiasts while travel choices reflect a desire for more meaningful and cost-effective experiences.”

 

Canadians are increasingly trading familiar U.S. trips for international travel and online gaming, seeking more meaningful experiences and better value amid rising costs and trade uncertainties.

 

Broader Industry Implications

The combined impact of trade disputes, currency fluctuations, and evolving consumer tastes is reshaping Canadian travel and gaming behaviors. The U.S., once a default for Canadian tourists and gamblers, now faces increased competition from international destinations and domestic online gaming platforms.

For U.S. tourism and casino industries, adapting to these changes will be critical. Offering better value, competitive pricing, and innovative experiences — both on-site and through digital channels — will determine how well they retain Canadian interest. Meanwhile, Canadian consumers are showing a growing willingness to explore beyond traditional borders, both physically and virtually. The convergence of travel and iGaming trends underscores a broader shift in how leisure and entertainment are consumed in a post-pandemic, digitally connected world.