Ontario recently released the numbers behind the success of its regulated online gambling market, which has been open since April 2022. During the first quarter of its operations, the sports betting sites and online casinos saw revenue of $4.1 billion.
With Q3 coming to a close, industry operators excitedly await iGaming Ontario’s second report on market performance, wondering if the sports betting revenue will surpass the already achieved 4% ($162 million) from Q2.
The Q2 results become even more impressive since they don’t consider the revenue from the Ontario Lottery and Gaming Corporation, such as ProLine+, but only those from private operators that have received an operating license.
Market Regulation on April 2022
Ontario’s regulated sports betting market launched on April 4th, opening its doors to numerous legal betting sites in Canada that, until then, operated on the gray market. With the increasing number of licensed operators, Ontario is set to become one of the most prolific online gambling and betting markets in North America.
The results speak for themselves. iGaming Ontario released its first report on August 30th, 2022, comprising data from the day the market launched sports betting through June 30th.
The total cash wagers, not including bonuses or promotional bets, reached $4,076 million, leading to a total gaming revenue of $162 million. These numbers, which don’t include fees and players’ winnings, are an excellent first result for iGaming Ontario.
According to Dave Forestell, the Board Chair of iGaming Ontario, these revenue numbers lie behind a solid player base and low barriers to entering the regulated market. At the end of Q2, eighteen live operators and thirty-one iGaming websites received their operating licenses, but these numbers continue to grow.
The same happens with the number of players, as at the end of Q2, 492,000 active player accounts were active. These don’t consider unique playing individuals but rather the number of player accounts on all licensed operators. Still, the numbers speak for themselves: Ontario is a market where players want to bet, and operators want to open business.
Q3 Revenue Predictions
iGaming Ontario should release its second report in the upcoming weeks, but all the current analysis points towards significant growth in revenue and number of users.
Projections point toward $439M in revenue in 2022, with a total annual growth rate of 7.18% between 2022 and 2027. If these predictions happen, Canadian online sports betting sites and casinos can expect a market volume of $621M within five years.
Likewise, this increase in numbers will also happen to player accounts. The online gaming segment should see 7.7 million users within the next few years, with steady yearly growth.
iGaming Ontario should also see a growth in the number of operators, with many brands currently awaiting the final decision from the regulatory entity.
What To Expect From The Regulated Market?
If the current predictions are to be believed, launching the regulated online betting and gambling market is likely one of the best decisions to happen for the province.
Nevertheless, iGaming Ontario and the Alcohol and Gaming Commission of Ontario might need to put additional responsible gaming tools in place as the numbers of players continue to grow steadily.
Although online betting should be practiced as entertainment, these activities might lead to additive habits – which the regulatory authorities must act upon early on and ensure all the necessary tools are in place for players.
With the continuous development of new betting and gambling options, especially those that might now seem futuristic, such as the case of Virtual Reality gambling, ensuring players remain safe should be one of iGaming Ontario’s main priorities.