The latest figures released by iGaming Ontario (iGO) have once again highlighted the positive direction the province’s burgeoning online gambling scene is heading. The subsidiary agency responsible for conducting and managing Ontario’s scene has updated their market performance report with new data from August, finding an 8% month-over-month increase in total revenues and a 7% jump in the number of active player accounts. As the regulated market closes in on the halfway point of its fourth year, figures like these reflect the continued success of what has quickly become Canada’s premier iGaming destination.
Ontario’s iGaming market has come a long way since its launch back in April 2022, expanding to include 50 operators and 87 gaming sites. As more players have moved into the market, revenues have continued growing, with GGR increasing from $1.26 billion in year 1 to $3.2 billion by the end of year 3. What is clear is that both operators and provincial government are reaping the benefits with company profits and tax contributions seeing healthy rises. Growth remained strong between year 2 and 3 however, this figure was markedly down on the 72% revenue growth witnessed the year previous. While on the surface this appears a concern, in reality this merely reflects a steadying maturation and stabilization of the market. In fact, Ontarian iGaming has reached new levels in August, recording its highest total handle ever by taking in $8.14 billion. Many industry insiders will be looking ahead to the next end of year financial statement to fully assess iGaming’s performance in the province.
A key takeaway from the recent performance report is the continued domination of the market share by online casinos over sports betting and P2P poker. The gambling format has a huge 89% market share in terms of wagers and a similarly impressive 80% share of total iGaming revenue, once more suggesting that online casinos remain the most popular platform for Ontarians. This is largely due to the impressive quality of the best online casinos available to play in the province, with many platforms highly rated on sites such as Casino.ca Ontario. Looking more closely at the isolated data for online casinos, not only are they dominating the market, but they are the key driver of growth. Over a 12-month period, monthly cash wagers at casinos have increased from $5.2 billion to $7.2billion, reflecting a 38% increase. In comparison, in that same timeframe monthly wagers in other gambling sectors appear to have stagnated or even fallen in the case of sports betting. While the dip in sports wagering can be attributed to the seasonal summer lull, when most major sports leagues in Canada are in their off-season, the year-round growth of the online casino sector further highlights its integral position in the success of iGaming more generally.
The month of July saw sports betting return its lowest handle since last August, with the $688 million spent nearly half that wagered in the winter months. Recent figures, however, show momentum returning, with both wagers and revenue climbing once again as bettors return ahead of the new sports season. Comparing the financial data, it is apparent that the sports betting sector is steadily expanding albeit at a much slower rate than the online casino scene. Across the last calendar year, the casino sector has witnessed a noticeable month-over-month increase in total wagers and gross revenues while sports betting has fluctuated. Those within the betting industry will be keen for commercial sports to start once more, building on their strong foundation as we move through the year.
The success of Ontarian iGaming is made all the more impressive considering the significant changes going on at the top for iGO. The agency’s previous executive director, Martha Otten, announced she would be retiring back in August 2024, and while she was persuaded to stay on until March of this year, since then, iGO has been on the search for a suitable replacement. As of September 8, former chief strategy officer at the Alcohol and Gaming Commission of Ontario (AGCO), Joseph Hillier, has taken the reigns as iGO’s new president and CEO, bringing with him a wealth of knowledge of the industry as well as useful prior experience in high finance. For operators in Ontario, the announcement of new leadership will come as good news, bringing the possibility of a fresh strategic approach and further regulatory and market developments. Hillier will be pleased to see the continued upward trajectory of the iGaming market as he begins his tenure, however, will no doubt be aware of the challenges ahead for the industry and the important role he will play in future growth.
Ontario’s iGaming has reached a critical crossroads, transitioning from a focus on market launch to the challenge of maintaining a competitive yet responsible gambling environment. This likely means answering calls for stronger regulations, including stricter oversight of operators, greater protections for players and improved monitoring to limit problem gambling. There is no doubting the highly competitive space created across the market’s first three years, however, firmer compliance laws could have a major impact. The concept of severe market selection has been discussed across emerging gambling markets where only the most prepared and flexible operators will survive stricter regulations. While the future of the Ontarian market remains unknown, many operators will be eagerly awaiting the latest announcements by Hillier and the rest of his team.
For now, operators and regulators alike will be enjoying the impressive figures that continue to come out of performance reports, with Ontario continuing to punch above its weight in the global iGaming scene. It is worth remembering just how much the province’s online gambling scene has grown in less than four years, especially when compared to its provincial neighbors, who have so far opted against regulating iGaming. With big changes expected in the near future, this is an exciting to be in the Ontarian iGaming scene.
Photo: Denise Chan, Unsplash
