Ontario iGaming Profit Forecasts
iGaming Ontario launched operations on 4 April 2022, hoping to bring revenue (and profits) into the province. Here’s how things have gone in the first two quarters and projections for future annual profits.
Change in the Status Quo
Until recently, Canada had a rather peculiar relationship with online casino betting and a restrictive attitude toward domestic eSports betting. The latter was limited to so-called parlay bets (multi-leg bets, also known as accumulators or multiples), which are unlikely to come off. The former was in short supply domestically. This naturally encouraged Canadians to bet on casino games and sports at overseas sites, and this only got worse when the USA decided to (on a state-by-state basis) open up to online betting.
Canada then reacted by permitting provinces to set up their domestic iGaming markets and allowing single-event sports betting in a bid to try and keep gambling revenue on the Canadian side of the border. Ontario was the first province to establish a domestic marketplace for iGaming. Although the province is home to the capital and most populous cities in Canada, iGaming remains popular because of its convenience. Not only was the online sphere largely immune to pandemic lockdowns, but they were also impervious to weather-related complications that can ruin an excursion to a real-world casino. The period of COVID-19 has opened up the possibilities of online casinos. Hopes are also high for Ontario’s market, but has it met expectations or underperformed?
Canadian Online Casino Market in Brief
Canadian casinos have always been popular, and with recent provincial moves to increase the home-grown market, there are increasing numbers of domestic sites alongside offshore casinos. The formerly grey nature of online casinos in Canada meant many players found a home at overseas sites keen to welcome them (and thanks to the common language and the United Kingdom being a major power, there was no shortage of such sites). For newcomers and old hands, there are many premium sites to consider when looking for the top online casinos in Canada. A quick way to get a shortlist of the very best is to analyze the casinos featured at top10casinos.ca that iGaming industry experts have reviewed. This makes it a cakewalk to compare the differing games, banking methods, and promotions that players can enjoy at different sites, so you can spend more time playing and less time searching for a casino.</p>
First Quarter
iGaming Ontario, the new market within the province to promote online casino and sports games and open up to private operators, launched on 4 April 2022. During the first quarter of its operations (the period ending 30 June 2022), total wagers (excluding bonuses) exceeded $4bn, helping to generate revenues of $162m. The number of operators within the nascent market’s first period of operation numbered 18, with gaming websites numbering 31. Just shy of half a million player accounts were registered (492,000), with average spending per month, per active player clocking in at $113. Note that active player accounts do not precisely correspond to the number of active players, as a given player may have multiple accounts with various sites.
Ontario is the first province in Canada to have a market of this nature, although the iGaming side has had a march stolen on it by certain US states. The overlap in sporting interest (primarily major leagues) and the pre-existing betting options established south of the border means the Ontario market will have a slightly trickier time than the US states did when they opened up. This is because many bettors will already have accounts with US accounts with many of the same options as available in Ontario. However, the protection and convenience of Canadian law governing Ontario’s market (and a dose of patriotism) has helped to persuade some players at least to move from wagering at US sites to those in Canada (specifically Ontario).
It’s also important to note the slightly odd situation on the ground at the time of iGaming Ontario’s launch. While restrictions related to the COVID-19 global pandemic have been lifted, many people will still feel wary of visiting real world casinos in person. This will encourage online gaming, although disposable income has been squeezed recently due to related economic difficulties (clogged supply chains and so forth) and the more recent inflation spike driven by Russia’s invasion of Ukraine.
Second Quarter
In the second quarter of the financial year (to the end of September 2022), Ontario’s newly regulated iGaming market reported significant growth over the previous three months. The total amount wagered was just north of $6bn, a rise of almost 50% quarter-on-quarter. Revenue hit $267m, up from $162m in the first quarter, a rise of over 64%.
In addition to more betting activity, there were also more betting opportunities in the second quarter, with the number of operators rising by a third from 18 to 24. Websites also increased in number, from 31 to 42. In line with other rising statistics, active player accounts rose from 492,000 to 628,000. One of the most interesting figures to go up is the average monthly spending, from $113 to $142.
Net Income Forecast
With figures rising across the board, the new market in Ontario is flourishing. What the ultimate ceiling is for online betting activity, both sports, and casino, remains to be seen, but the draw of convenience and progressive jackpot slots offering lottery-sized prizes means there is plenty of room for growth still to come.
The regulator is bullish about prospects, anticipating the number of online casino sites in Canada could exceed 70 before the year’s end. In spring, the provincial budget estimated that annual net income (for the first year of operation) could reach $18m, rising to a predicted $31m in 2024-25.
Time will tell whether these predictions are accurate, but the initial two quarters indicate substantial growth.
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