Ontario two years on: Industry reaction to how the province has developed since April 2022
As the province’s regulator champions a strong channelization rate and continued growth in revenue and actives, EGR gauges reaction from the major players to coincide with the anniversary of the launch
The regulated Ontario online sports betting and igaming market marked its second anniversary yesterday, April 4, with key stakeholders championing the past 24 months as a resounding success.
Ontario’s market officially launched on April 4, 2022, with the first sports bets taken at 12:00am ET. Since then, according to the latest figures from Igaming Ontario (IGO), the market’s regulator, the province has welcome 47 operators reporting more than C$17bn in handle across 1.2 million active player accounts.
IGO’s Q3 report, dated between October 1 to December 31, also added total revenue of C$658m on the back of an average monthly spend per account of C$186.
To mark the anniversary, the IGO has released new data to give a deeper insight into how the market has shaped up over the past two years, with EGR having collated the information below, along with reaction from other key players in Canada’s most-populous province.
Is this the right channel?
IGO, alongside the Alcohol and Gaming Commission of Ontario (AGCO), commissioned a study to coincide with the anniversary, which found that 86.4% of Ontario’s online gamblers were playing on regulated sites compared to the estimated 70% who were using unregulated sites prior to the market turning from grey to regulated in April 2022.
This figure also represents an increase on the 85.3% that stated that they were playing on regulated sites in 2023, according to the survey’s organizer, Ipsos.
Despite the improved channelization rate, the regulator raised concerns that 20.1% of online gamblers in the last three months were wagering on a combination of regulated and unregulated sites, and 13.6% were still gambling solely offshore. Those surveyed named over 350 unregulated sites they use, which has given the AGCO cause for concern.
Speaking on the channelization rate, Ontario Attorney General Doug Downey said: “As this made-in-Ontario igaming market celebrates its second anniversary, we’re very pleased to share that 86% of players are now participating on regulated sites.
“This is another pivotal milestone in our ongoing work to provide players and businesses with a strong, competitive, and safer online gaming environment that meets consumer expectations.
“We look forward to IGO’s continued success as a global innovator, as a job creator that sustained more than 12,000 jobs in its first year of operation, and as a leader in the online gaming space,” he added.
Size of the market
IGO also noted a recent survey by Vixio that placed the Ontario market sixth in the world when it comes to gross gaming revenue (GGR), ahead of Michigan and international markets like France and the Netherlands.
The study, published in November 2023, estimated that in the first half of 2023, Ontario’s online GGR had reached C$1.28bn and saw the province rise from 11thspot.
Internally, IGO broke down Ontario’s sports betting and igaming offerings by popularity to establish what players were wagering on the most.
In sports betting, basketball took the title with 24% of all sports wagers being on the sports in the financial year 2023-24, with football coming in second on 15%.
Hockey and baseball shared the third podium position with 11% each, with soccer just outside the medal positions with 10% of total wagers.
I spy igaming
Online casino remained the most dominant vertical in Ontario, with 82% of wagers placed on the vertical in the market’s second year. The IGO confirmed the online casino segment includes slots, live casino, table games and peer-to-peer bingo.
Blackjack was the most popular online casino game accounting for 27% of total wagers, with roulette coming in second on 9% and baccarat in third on 8%.
Peer-to-peer poker was the smallest of the three major verticals in Ontario in this time period, but still reported more than C$1.5bn in wagers. Five operators offer peer-to-peer poker in Ontario, with the IGO noting the province is the largest ring-fenced online poker market in terms of revenue in North America.
Martha Otton, IGO executive director, commented: “With 24 months behind us, we are starting to see a clearer picture of the Ontario player landscape in all three segments, betting, casino, and poker.
“I am looking forward to what comes next as we work with our operators to invest in Ontario and better understand Ontario players’ interests.”
With the market reaching two years old, PointsBet Canada CEO Scott Vanderwel took to LinkedIn to express his pleasure at seeing what the market has become since its launch.
He said: “Today marks a significant milestone for sports enthusiasts across Ontario as we celebrate the two-year anniversary of the official launch of the province’s sports wagering market.
“Over the last two years, PointsBet has emerged from our grassroots local beginnings into one of the leading private sportsbooks and digital Casino operators in Ontario. In the past two years, PointsBet has deepened its engagement with the vibrant sports community across Ontario, while also continuously improving to better serve our players.
“Our team has remained nimble and adaptable, willing to consistently improve and relentlessly focused on serving our customers with the best technology, competitive odds, and personalized human support.
“Looking ahead, we will continue to innovate our product, enhance the customer experience, ensure safe and responsible practices and do our part to support the continued growth and success of regulated igaming in Ontario.”
Growth spurt
Away from the operators, geolocation giant GeoComply has reported the regulation of Ontario has seen the group’s Toronto-based headcount rise above 50, doubling the local workforce in 12 months. GeoComply employs nearly 225 people across Canada.
Last Fall, the firm hosted several political figures at its Toronto offices to exude the benefits of expanding regulation to other Canadian provinces, with Alberta deemed the most likely to go live next.
During that event, Ontario’s Economic Minister Victor Fedeli said: “GeoComply’s choice of Toronto and Ontario as one of its latest destinations for expansion is a strong vote of confidence in our world-class cybersecurity and fintech ecosystems.
“We welcome the energy, ideas, and momentum GeoComply will contribute, and the growth and opportunity this investment will deliver to our booming tech sector.”