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Ontario Sees $26.4B Handle in its Inaugural Sports Betting & iGaming Year
By Jeff Osienya Apr 08, 2023 IndustryAfter just 12 months of ushering in a regulated online casino and sports betting market, Ontario is now among North America's top internet gambling markets. Here's a deeper dive into the online gambling numbers recorded by Canada's most populous province.Ontario's iGaming market has soared to impressive proportions in its maiden year of operations which debuted on April 4th, 2022. iGaming Ontario (iGO), a subsidiary of the Alcohol and Gaming Commission of Ontario (AGCO), recently published the market performance of Ontario's inaugural sports betting and iGaming year, and the numbers are impressive.
According to the report, Ontario residents wagered around CAD 35.6 billion ($26.4 billion) in their first 12 months of iGaming and sports wagering. The said haul translated to a stellar revenue of CAD 1.4 billion ($1.04 billion), putting the province among the five best-performing iGaming jurisdictions in North America.
The brilliant performance of Ontario's iGaming industry has been nothing short of stunning. This is despite a snail-ish start on entry when 18 operators generated a paltry CAD 4.1 billion ($3.1 billion) handle in the first quarter of operations. Speaking on the impressive numbers in the first year of operations, Doug Downey, the province's Attorney General, could hardly hide his delight. He said:
Quote"Ontario's iGaming market has displaced the pre-existing unregulated market and made Ontario a recognized leader internationally in this industry since its launch in April 2022… We are truly proud of this strong, responsible, and competitive online gaming model. I want to especially commend the strong leadership of Executive Director Martha Otton, Board Chair Dave Forestell, and the rest of the team at iGaming Ontario for helping us transform Ontario into a global leader in the sector."
Basketball Betting Crushes All Other Sports
Taking 28% of all the wagers, b-ball emerged as the most popular sport – an expected outcome by many industry observers as Ontario is the home province of the NBA's Toronto Raptors. Soccer, or rather football, came in second, registering 15% of all the wagers, followed by American football with 14% of the total handle. Further, hockey and baseball rounded up the top five most wagered on sports, bringing in 9% and 8% of the sports betting handle, respectively.
Veering away from sports betting to the online casino category, Online Slots unsurprisingly came out on top, bringing in 48% of the total expenditure. Live dealer table games came in second with 32% of the overall online casino gambling activity, while computer-based table games generated the remaining 19%.
Besides being home to the Raptors, Toronto, the fourth largest city in North America, is home to many other sports teams. It also hosts two NHL (National Hockey League) franchises, three Canadian football teams, and the MLB's (Major League Baseball) Toronto Blue Jays. Therefore, it isn't much of a surprise that the numbers out of Ontario are as remarkable as they are in the first 12 months of regulated activity. iGO Board Chair Mr. Dave Forestell commended the terrific online sports betting and iGaming showing saying:
Quote"Today's numbers demonstrate that Ontario has one of the best online gaming markets in the world. Since Ontario opened the market, we have seen new investments, job creation, and captured revenue that used to leave the province. Ontario is well on its way to becoming the best gaming jurisdiction in the world."
Regulators Keen to Enforce Responsible Gambling in the Province
The excellent numbers aside, Ontario remains one of the strictest jurisdictions when it comes to gambling regulations. Limits on bonus advertisements still stand to date, with the ultimate aim being to ensure that the larger vulnerable gambling population does not slip into the trap of enduring gambling problems.
Speaking of vulnerable populations, there are strict signage restrictions that prohibit sportsbooks from placing billboards anywhere near learning institutions. With the success the province has experienced within its first year, it is great to know that the plights of the vulnerable society are a priority.
Most of Ontario's Players Have Trust in the Regulated Market
A survey conducted by Ipsos in March 2023 revealed that around 85% of players who gambled in the past three months in Ontario did so on regulated sites. And data from the iGO also backed up this survey. According to the regulatory body, there are currently more than 1.6 million active player accounts across websites run by more than 40 licensed operators. Moreover, in the indicated online gambling platforms, the average expenditure per player over the past year was roughly CAD 70 ($51.92). With such stats, the province is undoubtedly one of the most competitive markets in North America.
In her briefing, the Executive Director of iGO, Martha Otton, assured players of their safety under the jurisdiction of Ontario. She stated:
Quote"Every player who places a wager with a legal operator is doing so in a safe, regulated, and protected environment. I want to thank the players, our 40-plus operators, and our government partners for placing their trust in us. Together we can help this market continue its strong performance."
The trust the regulated iGaming market currently enjoys has been due to extensive efforts and groundwork laid by the current provincial government. For instance, Ontario's government teamed up with the Alcohol and Gaming Commission (AGCO) and its online gambling subsidiary (iGO) to establish a more open market. This has ensured free-flowing competition where consumers are spoilt for choice regarding the variety of operators serving the provinces. For the past 12 months, for example, there have been 45 operators serving Ontario and a total of 68 gambling websites.
Speaking on the favorable results reported from Ontario, Tom Mungham, the Registrar and CEO of AGCO, said, in part:
Quote"A key objective in this first year has been to move Ontario players from on unregulated sites to the regulated market, so that they would benefit from high standards of the operator, and game integrity, fairness, and player protections, including responsible gaming safeguards… Although there is still much work to be done, we're pleased to see such a substantial shift towards gaming on regulated sites so far, and everything it represents for players and the province."
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