Ontario’s Online Betting Market Surpasses $20 Billion in First Year

Ontario, Canada’s most populous province, officially launched its regulated online gambling market on April 4, 2022. According to Covers, the first anniversary of the gambling jurisdiction has been marked not only by operator revenue growth but also by intense competition among companies.

iGaming Ontario, the government agency responsible for regulating gambling, announced on April 4 last year that at least 17 gambling sites were operational on the first day of legal online gambling in the province. A year later, over 70 internet resources offer sports betting, poker, and online casinos in Ontario.

The turnover of bets on the regulated online gambling market in the province exceeded $20 billion in the first year, with operator revenues surpassing $875 million.

Roughly 20% of gambling companies’ profits are directed to the Ontario authorities by operators.

Benjie Levy, the COO of PENN Interactive, said, “Ontario has quickly become one of the most robust and competitive online gaming markets in North America. We commend the Alcohol and Gaming Commission of Ontario (AGCO) and iGaming Ontario (iGO) for the successful establishment of a regulated online gaming framework that provides important consumer protections, features comprehensive responsible gaming measures, and contributes to economic development throughout the province”.

However, the market’s attractiveness to operators has resulted in intense competition for players. Over the year, some companies, notably Coolbet, have decided to leave Ontario’s jurisdiction due to the marketing pressure from larger companies investing heavily in local market promotion.

Moreover, the legalization of online gambling has effectively destroyed the fantasy sports industry in Ontario. Specifically, DraftKings and FanDuel declined to provide such services to residents of the province just before the market’s launch.