On Tuesday, officials hailed the first year of a competitive online sports betting and internet casino market in Ontario, Canada’s most populous province, as a success. However, they also emphasised that there is still work to be done in order to ensure the long-term viability of the province’s iGaming experiment.

Ontario’s iGaming experiment: A successful first year

In April 2022, Ontario launched a regulated market for internet gambling, which allowed multiple private-sector operators of gaming sites to participate. The market is overseen by the Alcohol and Gaming Commission of Ontario (AGCO) and iGaming Ontario (iGO), a government agency that signs operating agreements with bookmakers.

During an anniversary event in Toronto hosted by the Canadian Gaming Association, iGO Executive Director Martha Otton expressed her satisfaction with the first year of the initiative. However, she also acknowledged that there is more work to be done to keep the iGaming industry thriving and surviving. According to iGO Executive Director Martha Otton, the provincial government has given iGO a mandate that aims to provide players with choice and protection, as well as generate revenue for the province. iGO’s numbers, released on Tuesday, suggest that the agency is achieving these objectives. Since its launch last year with 12 operators, Ontario’s competitive iGaming market has grown to include over 40 firms offering legal sports betting, casino gaming, and poker. In the first year of the market, iGO reported more than $35 billion in wagering and around $1.4 billion in total gaming revenue generated, with approximately 20% of that revenue going to the province. These figures have put Ontario among the top five iGaming jurisdictions in North America, alongside states such as Pennsylvania, which reported iGaming revenue of approximately $1.5 billion for the 2021-22 fiscal year.

Regulated iGaming market attracts customers, addresses unregulated activity

The province’s regulated market has also succeeded in attracting customers away from unregulated “grey” operators. A recent survey commissioned by iGO and the AGCO found that 85.3% of online gamblers surveyed had wagered using regulated sites over the past three months. This marks a significant shift from the estimated 70% of online gambling that occurred on unregulated sites before the launch of the market. The AGCO noted in a press release that this is a positive development for the industry and for player protection. While the iGaming market in Ontario has been successful in generating revenue and providing choices to players, there are still some issues to be addressed. Unregulated activity remains a concern for watch dogs, and the industry would like to see adjustments made to the competitive market. The recent departure of Coolbet from Ontario has caused some controversy. To address these concerns, iGO’s CEO, Otton, has mentioned that the agency is looking to streamline its operations through automation and encourage innovation in the iGaming market. However, responsible gambling remains a top priority, and iGO is working on a centralised self-exclusion list that will allow players to ban themselves from all sites. A common self-exclusion registry is being planned for the future, using data from operators. Dave Forestell, the chair of iGO’s board of directors, noted that the agency has learned some valuable lessons in the first year of the market. For example, banking fees that operators complained were too high will be addressed. Forestell also acknowledged the need to share more data on responsible gaming and the commercial market and to make it more difficult for illegal operators to offer their product in Ontario. A technology roadmap for the future is also being developed.

Concern over advertising ban

Certain members of the gambling industry hope that regulators in Ontario will reconsider their ban on advertising bonuses, free bets, and other gambling inducements. The iGaming standards set by the AGCO prevent the broad promotion of these inducements, only allowing customers to be made aware of them on an operator’s site or through direct advertising that players must elect to receive. This approach has presented difficulties for marketing affiliates like Covers, who provide information to bettors about sportsbooks’ quality, including any promotions they may offer. Affiliates can discuss the pros and cons of an Ontario sportsbook except for any inducements. According to Andrew Garven, Head of Marketing at Covers, this limits consumers and does not give them enough information to make informed decisions, given the wide range of offerings and operators. During an affiliate panel at a recent gathering, Dave Phillips, COO of the AGCO, acknowledged that the first year had been “hugely successful,” despite concerns about the strength of the unregulated market and the challenges posed by Canadian law. Phillips indicated that the AGCO would continue to monitor regulatory compliance and engage with operators. He further added that no one could claim the market was perfect, as it is continuously evolving, and there is still a long way to go. Despite challenges, the growth of iGaming in Ontario is also benefiting the Ontario Lottery and Gaming Corp. (OLG), with both private-sector operators and OLG reporting more than 1.6 million active player accounts on their digital platforms. Dave Pridmore, OLG’s chief gaming officer, reported record-setting revenue figures from its 1.6 million registered players for its digital offerings. OLG’s digital gaming business provided a net profit to the province of $223 million for the fiscal year, up 23% from the previous year. The corporation’s revenue for the unit was up 45% year-over-year to $427 million. The entry of dozens of competitors into the market gave OLG an impetus to ramp up its efforts, according to Pridmore, and “reenergized OLG to really think about our digital offerings.”

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