The ideal scenario is for a country to license and regulate online gambling and then grow it into a strong and sustainable industry through positive reinforcement and active management.

When online casino licensing launched on 4 April 2022, Charles Gillespie of the Gambling Group said:

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“The province is taking the right approach by keeping the barriers to entry low and allowing a variety of operators to enter the market. This will foster competition and ultimately benefit consumers as the operators with the best products rise to the top.”

Given the first quarter results for 2024 and the recent annual online casino revenue growth, the government of Ontario has found the balance that has allowed this to become a reality in its territory.

Q1 2024 Has Shown Amazing Results

Ontario took a leap of faith by going wide with its licensing, opting to give local players a wealth of choices to ensure market competition rather than regulation kept operators on their toes.

Martha Otton, executive director of iGaming Ontario, said:

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“With 50 regulated operators and a one-third increase in wagering and revenue figures over the first quarter of last year, Ontarians who choose to gamble are finding many enjoyable options in our open, regulated igaming market.”

The Q1 2024 report from iGaming Ontario shows that their gamble paid off with a quarter-on-quarter increase of 3.4% in total wagers. Best of all, the CA$18.4 billion in wagers excludes bets placed with bonus credits.

While the increase from the last quarter of 2023 to the first quarter of 2024 was impressive, the year-on-year Q1 comparisons are even more so, with the market showing a 31% increase.

Online Gambling Category Results

It is always interesting to see how various gaming categories perform across the globe. With Canada's ingrained love of sports and sports betting, one often expects to see games of skill and betting outperforming games of a chance early on in a regulated market's lifecycle.

This tends to shift over time as players discover the action, excitement and big win potential of Online Slots and progressive jackpot games, not to mention the variety of Free Spins and slot game-focused promotions.

The Q1 2024 revenue breakdown by game type is as follows:

1. online casino games (84%): CA$15.5 billion
2. Online betting (14%): CA$2.5 billion
3. Online poker (2%): CA$402 million

The above results were generated by approximately 1.9 million active casino and betting account holders, averaging a median spend of only CA$284 per customer.

For a country with a median annual household income of around CA$120,000, this is a sustainable entertainment spending allowance, which explains why problem gambling equates to only 2% of the market.

Community Focus is Key to Long-term Success

As we have seen with the successful launch and growth of online casino revenue in the Philippines, Ontario has dedicated most of its income to improving local communities.

The press release regarding the success of the market explains:

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“The revenue generated by Ontario’s competitive igaming market contributes directly to provincial priorities such as infrastructure, healthcare and education.”

By prioritising the bulk of online casino licensing fees and annual tax earnings for community-facing projects, the government creates a framework that demands the protection of the local gambling population and a foundation supporting the measured growth of the licensed gambling business sector.

This ensures that much-needed funding is provided to grassroots sporting programs, educational facilities, community centres, and generally underfunded addiction and rehabilitation centres.