The global online gambling industry is one that has gone from strength to strength over the course of the last few years. Driven by improvements in technology which have served to strengthen the quality of gaming platforms as well as better security protocols that have helped gamblers feel more secure when making large monetary transactions online, many businesses have seen this space as one full of lucrative opportunities.
Across the world, governments and local authorities have also seen the revenue-generating potential of the online gambling industry and strived to take advantage of the benefits while also finding ways to mitigate some of the negative implications. However, as stats show, the financial revenue this sector generates for local economies is highly impressive, as has most recently been seen in the Canadian Province of Ontario.
Ontario wins big in 2022
Believe it or not, the Canadian province of Ontario only launched legal betting on April 4th 2022, after authorities acknowledged the revenue-generating potential of the online gambling sector as well as the benefits that come with additional regulation.
Since then, the revenue figures generated by the sector have proven to be nothing short of impressive. Most recently, Ontario’s iGaming market saw total wagers of CAD 4.07 billion ($3.09 billion) for the second quarter of the year, amounting to an overall total gaming revenue of CAD 162 million ($123.9 million) for the period up to the end of June 30th 2022. These figures cover the first full quarter of Ontario’s online gambling market operations since the legalisation of betting back in early April.
Figures were published by a subsidiary of the Alcohol and Gaming Commission of Ontario – iGaming Ontario (iGO) – earlier this month. Presently, there are over a dozen active operations and 31 gaming websites boasting over 425,000 players who spend circa CA$113 per month. That said, recorded numbers don’t necessarily depict unique players since individuals may have numerous accounts with several operators, the majority of which are listed on NoDeposit365.ca.
The nature of Ontario’s online gambling market
The statistics referred to in the published figures cover Ontario’s online gambling market, which includes all iGaming operators that have entered into an operating agreement with IGO. This, however, does not include the Ontario Lottery and Gaming Corporation’s (OLG) online gaming offering. Furthermore, the total cash wagers stated within these figures do not include the income generated from promotions or bonus bets.
Regardless of whether measured by the number of active player accounts in the province or revenue performance, IGO says that the findings here demonstrate how the population of Ontario have an interest in the strong player and anti-money laundering protections that have come into fruition since the online gambling market became more regulated earlier this year.
According to Davi Forestell, IGO’s Board Chair, the organization’s fundamental aim has been to enable Ontario to be the best gaming jurisdiction in the world. Forestell went on to express optimism for the future by highlighting how these positive results at such an early stage were incredibly promising.
He went on to explain how the low barriers to entry, a strong player base, and competitive revenue share rate had served to make Ontario’s iGaming market an attractive investment for prospective business investors. The province’s market is very diverse, with it currently being home to a wide variety of actors, from prominent gambling operators such as the US giant DraftKings and international actors such as Entain to small local providers such as North Star.
Prospects for the future of Ontario’s online gambling market
While Ontario’s Online Gambling market as it stands today is relatively young, the sector has got off to a flying start in 2022, with its whopping revenue-generating potential being made abundantly clear from the get-go. Although it is unclear what the future holds for Ontario and how the market will weather the impacts of global economic development, at present, the authorities are right to be optimistic about the future.
Investors will continue to look to IGO for insights on market trends in Ontario, and IGO will release a market report for each quarter at a minimum. The organization has also stated that it intends to provide more detailed reports on metrics related to various gaming product segments, player protections, player demographics and the economic impact of the gaming industry. It is expected that this type of information will give stakeholders, as well as potential investors, better insights into Ontario’s market for the future.