Online Gambling’s Positive Contribution to Ontario’s Economy

With its first year of licensed online gambling under its belt iGaming Ontario released a review of the sector's impact on the local economy. The Deloitte report, Economic Contributions of Ontario’s Regulated iGaming Market, discusses the importance of the fledgling industry to the growth and development of Canada’s second-largest province.

Attorney General Doug Downey said:

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"Over the past year, Ontario's igaming market has been internationally recognised for creating a safe, legal and competitive landscape while supporting the province's economy and displacing the existing unregulated market.”

We have compiled a trimmed-down version of the report addressing the salient points below.

 iGaming Contributes to All Levels of Government

The online gambling sector's success in Ontario has resulted from increased market channelisation. By ensuring that player revenue is directed inward, they have produced fantastic revenue results, leading to high-value job creation.

According to the projections provided by Deloitte, there is an expectation that the Ontarian market will surge from just under $500 million to around $1.39 billion by 2031/32. The knock-on impact of an increasing iGaming sector is that federal revenues will increase to approximately $647 million, while municipal income levels could reach $115 million.

These projections are based on a flat revenue share of 20% paid to Ontario, plus a variety of municipal, provincial, and federal government revenues and income and personal taxes.

Dave Forestell, Chair of iGaming Ontario, said

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"Today's report reveals that Ontario's newly regulated igaming market is delivering real benefits to every resident of Ontario, whether they play or not. The igaming industry is a real economic driver in Ontario. Together, we can help realise our goal of leading the world's best gaming market right here at home."

 Improved Opportunities and Earning Potential

The value of this enhanced national income will filter down to the local job market. The research team reviewed the jobs and commensurate salaries from before the market was regulated and post its regulation.

They found that the average annual salary in Ontario has increased to $103,000. This new salary band is 41% higher than the average salary across all local industries, including jobs that rely on “science, technology, engineering and mathematics (STEM)” skillsets.

The report project that by 2031/32, the sector could support up to 22,000 full-time or equivalent jobs and generate up to $4.7 billion in GDP.

Additional highlights from the report include:

• According to a report, jobs in the Ontario igaming market in 2022-23 added around $171,000 to the economy. They also predict that by 2031-32, this will increase to around $813,000.
• The report also detailed how in 2022-23, an extra $1.14 was added to the Ontario economy for every dollar spent by the iGaming sector. The report predicts that by 2031-32, an additional $1.78 will be added for every dollar spent.

The report was compiled on April 26, 2023, from data gained through discussions, interviews with various industry stakeholders, and third-party research papers.