On the 4th of April, 2022, Ontario did something no other province in Canada had ever done – it launched an open, regulated online gaming market. There are now numerous online casinos that are licensed and regulated in Ontario. However, online casinos seeking the Ontario license had to stop accepting Ontario players until the license had been secured (source: https://www.techopedia.com/gambling/canada/best-online-casinos).
Since that launch, and the growing number of licences granted, the numbers released by the official body in charge of the market, iGaming Ontario (IGO), reveal a massive online betting market in the province. Do you know that billions of dollars are spent quarterly on wagers in Ontario?
However, that is not the most interesting thing. The numbers also show Ontario betting fans are far more interested in iGaming than sports betting. Is that shocking? Well, numbers don’t lie – and we will examine those numbers.
Examining the Numbers For Online Gaming in Ontario
Let us look at the numbers released by iGaming Ontario (IGO) for two quarters in 2023: April to June and July to September.
For April to June
IGO reported that Ontarians placed wagers worth $14 billion. The breakdown of this $14 billion indicates that $11.6 billion went to iGaming, that is, casino-related bets such as slots and bingo games. On the other hand, about $2 billion went to sports betting. Note, also, that the market generated $545 million in revenue, with iGaming contributing $392 million and sports betting contributing about $136 million.
What do all these mean? They show that between April and June 2023, iGaming made up 83% of the wagers made by Ontarians and 72% of the profit generated by the market. Conversely, sports betting only accounted for 25% of the profit and 14% of wagers.
Numbers: July to September
Did anything change in the next quarter? No. Not at all. The numbers from this quarter were very similar to the previous one. Here, Ontarians placed wagers that amounted to an overall 14.2 billion, and the total revenue from the market was $540 million. Again, iGaming led the way by a distance, contributing $11.9 billion to the wagers and $407 million to the profit. On the other hand, sports betting accounted for $1.9 billion in wagers and $118 million in revenue.
Could it be any clearer? We don’t think so. Ontarians spend far more on iGaming, that is, casino-related gaming, than anything else, and if the numbers from both quarters are anything to go by, the distance between iGaming and sports betting will only continue to increase.
Online Gaming in Ontario: The Ever-Growing Market
One important thing to note about online gaming in Ontario is the speed of its growth. As stated earlier, the regulated market began in April 2022; and growth since then? Phenomenal.
For instance, Ontario’s number of licensed operators in September 2022 was just 24. Fast-forward by a year, and there is an increase to 47. Also, the number of gaming websites available to users moved from 42 in 2022 to 71 in 2023.
It doesn’t stop there, though. Active player accounts also moved from 628,000 in 2022 to 943,000 the following year. Are active player accounts unique players? No, they are not. They are just accounts with wagering activity or cash. It means that one person can own more than one active account.
Lastly, the average amount spent monthly by an active player account increased from $142 in 2022 to $191 in 2023.
Leading From the Front: Ontario Regulations
As a result of the immense success that Ontario has gotten from its regulated market, other provinces in Canada and even nations from around the world are looking to replicate its methods.
However, the immense success that Ontario boasts of from its online gaming regulations comes with potential problems. According to behavioural scientists and experts, the fact that there is growth in online gaming means that there will most likely be more people struggling to know when to stop playing. Some have pointed out that many of the operators offer 24/7 services, increasing the chances that people will play more than they intended to.
They further point out that placing a wager or bet is quite simple, making it a source of instant gratification. Why is that important? It is important because instant gratification is one feature that makes a habit likely to stick.
Thankfully, the Ontario government is not unaware or indifferent about this danger. Via statements from its officials, the government recognizes the threat and mentions that there are ways for individuals to get help if they are having issues with gambling or even if it is a loved one who does.
Furthermore, the government also dedicates considerable funds towards helping with any addiction problems. According to a spokesperson, the government earmarks $31 million in annual funding to help people enjoy gambling responsibly: $6 million is channelled toward prevention programs, while $25 million is for treatment initiatives.
The regulated online gaming market experiment in Ontario has been a successful one. It has unmistakably revealed that Ontarians prefer iGaming to sports betting and that this preference will only grow.
Indeed, the entire online gaming market is expected to grow, and while concerns about its expansion are valid, the Ontario government is on its toes to curtail any issues. Talk of a win-win!
