How is Ontario’s iGaming industry faring more than 2 years after launch?

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It’s been just over two years since the province of Ontario opted to legalise and regulate iGaming for its citizens. It was a bold move, given that no other Canadian province had shown an appetite to do so. However, over the border in the U.S., a growing number of states were starting to acknowledge the financial benefits of operating such an industry.

Within this article, we’ll explore the growth of the Ontario iGaming market from launch to the present day, using influential reports from Deloitte and iGaming Ontario. The latter works in collaboration with the Government of Ontario and the Alcohol and Gaming Commission of Ontario (AGCO) to protect the best interests of players using licensed operators.

Learning from the success of established iGaming markets

The Ontario iGaming industry has sought to model its marketplace on the regulated iGaming jurisdictions of the UK and Malta. Its core values are to create fun iGaming experiences which are backed by state-of-the-art technology. This means securing the best possible software suppliers. Looking at the new online slots in the UK, this involves offering slot experiences involving Megaways and Link & Win game engines, as well as themes inspired by popular culture like UFC and Rick and Morty.

By the same token, its mission is to deliver an iGaming market that’s respectful to Ontarians, promoting and empowering responsible gaming among operators and consumers alike. So, has this approach bore fruit from a commercial perspective?

According to the latest report on Year 2 of Ontario’s iGaming market, conducted by Deloitte in partnership with iGaming Ontario, the industry has generated over $4 billion in economic value for the wider province.

Economic data shows the demand for iGaming in the province

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That’s since the launch of the market back in 2022. However, in 2023 alone, Ontario’s iGaming scene yielded $2.7 billion, representing a 70% year-on-year increase. In the same report after the opening year, iGaming Ontario had set a 10-year benchmark of $4.7 billion generated for the province. The fact the industry is only $700 million shy of this target after just two years demonstrates the viability of the sector for the public purse.

Almost $1.3 billion of the £2.7 billion generated in GDP last year was derived from wages and alternative labour income, up 45% year-on-year. The sector generated almost 15,000 jobs in 2023, compared with just over 12,000 in 2022.

Perhaps the most encouraging statistic of all from Deloitte’s report is that for every $1 invested in iGaming services, an estimated $1.40 is yielded for the Ontario economy. This is up from $1.14 in the sector’s opening year. According to attorney general, Doug Downey, these figures show no signs of slowing down yet, although a plateauing of the economic benefit is sure to happen in the coming years.

Total wagers placed for the 2023-24 year ending March 31, 2024 approached $63 billion, representing a 78% year-on-year improvement on the previous year. Total gaming revenue for the same period reached $2.4 billion, also up 72% year-on-year. iGaming remained the most popular segment for the Ontario betting market, with $51.7 billion of the $63 billion wagered placed on casino games compared with $9.7 billion on sports betting and $1.6 billion on online poker games.

Despite being in its infancy, comparatively speaking, Ontario’s iGaming industry is a successful proving ground for anyone on the fence over a well-regulated sector’s potential economic benefits.