The worldwide online gaming industry has witnessed expansion and innovation, and Ontario’s iGaming business has evolved as a significant and dynamic sector within the province’s economy.
For this developing industry, 2023 was a momentous year with notable innovations, legislative changes, and a steadily growing user base.
Market Insights
The current state of the Canada Ontario iGaming market in 2023 bears witness to its growing potential and strategic development. In the context of market expansion, regulatory adaptation, user engagement, and revenue, the first quarter of the fiscal year 2023–24, in particular, set an astounding example.
During this period, iGaming Ontario (iGO) reported a record-breaking total gaming revenue of $412.4 million, marking a significant uptick from the previous quarters. This growth was not incidental but resulted from a concerted effort to diversify the gaming offerings and enhance the regulatory framework to attract more operators and, consequently, a wider audience. The $10.6 billion wagers from April to June 2023 surpassed the previous quarterly record, underscoring the market’s vibrant activity and consumer trust.
Casino games, including slots and table games, constituted the lion’s share of this wagering, contributing to 83 per cent of the total and 72 per cent of the gaming revenue. This dominance of casino games in the revenue mix highlights the enduring popularity of traditional gaming experiences among Ontarians, even as the market evolves. Betting on sports and esports also showed robust performance, indicating a diversified interest among the gaming community.
Performance Highlights
From July to September, the second quarter of the fiscal year 2023-24 marked a significant growth and innovation period for Ontario’s iGaming sector. iGaming Ontario’s detailed market performance report for this quarter reveals a sector that not only continued its upward trajectory in terms of financial performance but also demonstrated a remarkable capacity to adapt to and capitalize on changing market dynamics and consumer preferences.
During this quarter, total wagers reached an impressive $14.2 billion, representing a 132 per cent increase over the same period in the previous year. This surge in wagering activity underscores the growing popularity and acceptance of iGaming platforms among Ontarians. The total gaming revenue for the quarter stood at $540 million, showing a 105 per cent increase over the second quarter of the previous fiscal year. These figures indicate a robust and thriving market driven by a diverse gaming option and an ever-expanding user base.
The diversity in gaming preferences further underscored the resilience and adaptability of the sector. Online casinos in Ontario, featuring games such as slots, live and computer-based table games, and peer-to-peer bingo, represented a significant portion of the market activity. These online platforms accounted for nearly $11.9 billion (84 per cent) of total wagers and $407 million (75 per cent) in gaming revenue. The prominent role of online casinos in the market’s revenue composition highlights the lasting appeal of traditional gaming experiences seamlessly integrated into the digital landscape.
Achievements
The third quarter of the fiscal year 2023-24, encompassing October to December 2023, showcased a remarkable phase of growth and achievement for the iGaming industry in Ontario. The period was characterized by a significant increase in total wagers and gaming revenue, highlighting the sector’s expanding influence and pivotal role in Ontario’s digital entertainment landscape.
The detailed performance report from iGaming Ontario reveals that various gaming offerings drove the sector’s success. Casino games, including slots, live and computer-based table games, and peer-to-peer bingo, continued to dominate the market, accounting for nearly $13.7 billion (79 per cent) of total wagers and $471 million (71 per cent) of gaming revenue. This dominance underscores the enduring popularity of casino-style gaming among Ontario’s iGaming community.
Betting activities, encompassing sports, esports, proposition, novelty bets, and exchange betting, also saw significant activity, contributing nearly $3.1 billion (18 per cent) to total wagers and $171 million (25 per cent) to gaming revenue. This segment’s performance highlights the dynamic and versatile nature of the iGaming market, where consumer interests span a wide range of betting activities.
Peer-to-peer (P2P) poker, while smaller in scale compared to casino games and betting, maintained a steady presence in the market, accounting for $431 million (2.5 per cent) of total wagers and $17 million (2.5 per cent) of gaming revenue. The sustained interest in P2P poker is a testament to the diverse gaming ecosystem in Ontario, catering to a wide array of gaming preferences and styles.
Year-End Review and Future Outlook
The fiscal year 2023 concluded with a strong performance in the fourth quarter, encapsulating the market’s overall success. The full-year report, covering the period from January to March 2023, alongside the cumulative insights from the previous quarters, paints a picture of a robust and thriving iGaming ecosystem in Ontario. Looking ahead, the focus remains on enhancing user experience, regulatory compliance, and market sustainability, emphasizing responsible gaming practices.
The iGaming market in Ontario has demonstrated significant growth and resilience in 2023, with each quarter building on the successes of the previous one. The strategic expansion of gaming options and a focus on innovation and user safety have positioned Ontario as a leading player in the iGaming industry.
It is very frustrating to hear so much about how online gambling is doing so yet it leads to addiction with people and families suffering. You need to report on the houses lost and marriages destroyed due to gambling. Start telling both sides of the story. Nobody is a winner with gambling except those that own the online games.