In April 2022, the province of Ontario officially regulated its iGaming industry, overseen by iGaming Ontario, a subsidiary of the Alcohol and Gaming Commission of Ontario (AGCO).
This move brought transparency and legal structure to the gambling sector, allowing for the collection of revenue from various sources, such as cash wagers, rake fees, and tournament fees.
Ontario’s iGaming market boasts several prominent operators, including industry giants like PointsBet, Rush Street Interactive, Bet365, and FanDuel.
During the third quarter of the financial year, player spending surged by an impressive 21.1%, reaching a staggering $17.2 billion, when compared to the previous quarter. Notably, this figure excludes promotional wagers.
Online casino games were the standout contributor, contributing $471 million to the total gaming revenue for the quarter, a substantial 15.7% increase compared to the previous quarter.
Betting activities accounted for $171 million of the total, while peer-to-peer poker generated $17 million in revenue.
Examining the breakdown of total wagers, online casino games dominated, making up $13.7 billion or 79% of all wagers.
Betting activities accounted for $3.1 million, while peer-to-peer poker brought in $431 million in revenue.
In terms of year-on-year growth, the online gaming sector experienced a remarkable 44.0% increase in revenue, while player spending witnessed a substantial uptick of 49.1%.
Additionally, the iGaming landscape in Ontario saw an expansion, with 72 gaming websites operating in the province during Q3, a net increase of four.
The number of operators also grew by 13, totaling 49 in the same period.
The quarter saw an average of 1.2 million active player accounts, marking a notable 31.8% yearly increase.
Furthermore, the average monthly spend per active account stood at $186, representing a $19 increase compared to previous periods.
During the third quarter, AGCO imposed a fine of $150,000 on PointsBet Canada for breaching responsible gambling provisions, highlighting the commitment to player protection.
In November, iGaming Ontario announced plans to launch a request for proposals for the development of a self-exclusion service within the province.
November also brought significant partnerships to the forefront, with Penn Entertainment securing agreements for its ESPN Bet and theScore Bet brands to become the official sports betting partners of the National Hockey League (NHL), further cementing the growth and dynamism of Ontario’s iGaming industry.