When betting was legalized in Ontario in April of 2022, there were many questions about how the process would play out. Sports betting had previously been legal only through government operators like Proline. But following the passing of Bill C-218, private corporations could provide legal betting services to Canadians with the help of the government regulation of iGaming, a subsidiary of the Alcohol and Gaming Commission. This was a ground-breaking change, and after a full quarter, it has been a mild success, with reported quarterly revenue of $124 million.
These substantial changes have impacted how many online sports betting sites operate. There have been numerous websites that have been able to secure iGaming licences, like Betway and Bet365. A quick review of the Betway online casino will show certification on the bottom of the website, which means they are licenced and regulated by the Ontario government. Let’s dive a little bit into the reports of big earnings from iGaming websites.
The iGaming websites were projected for massive gains straight away, and the numbers fall a little bit short of expectations. The reports differ, with some stating the number at $124 million and others having it a little higher at $162 million. However, either way, this is a significant slice of gambling money that the government was missing out on.
The other numbers are staggering as well. More than $4 billion of bets were placed by Ontarians over the first quarter that iGaming existed. The splits are 75 per cent of bets placed with virtual casinos and 25 per cent placed on sports bets. In the short time that iGaming websites have existed, they have amassed more than 492,000 active player accounts. That means there is a large number of Ontarians that have already gotten started with their betting journey.
It is easy to project sustained growth; as the more betting is normalized, the more people will partake. iGaming has opened the doors to allow sports betting sites to use advertisements to try and attract new users. Now, rather than trying to appeal to users with pop-up internet ads, sportsbooks can market on billboards, television, and subway stops. This means it is likely going to become a lot more mainstream.
One of the things that have quelled optimism around the press release about iGaming’s revenue performance is how the Ontario market has performed relative to similarly-sized American markets. When sports betting was legalized and government regulated in the United States, websites found a lot more immediate financial success.
In Michigan, which has a population of 10 million, the first quarter of online betting revenue was $466 million. This is more than three times the amount of Ontario, and Ontario has a substantially higher population. However, this might just be because the United States market is more experienced with gambling. The U.S. is a mature market with gambling, but with some time, Ontario can get there.
Even if the market has moved slower than expected, the fact of the matter is that it is a major improvement from the previous state of affairs. The Canadian government is now getting a substantial amount of revenue, a projected half a billion dollars a year, with room for growth. This money is going to go towards a variety of causes and fill the government coffers, helping consumers in the long run. The iGaming rules are also projected to add hundreds, if not thousands, of jobs to the Ontario market.
Sports betting in Ontario has long been a legal gray area. Perhaps it is only natural that it will take time for the market to reach the high expectations that were placed on it. One thing is for certain, and that is that the potential for massive growth is still there. Ontarians love sports, and they love betting, and with the development of these websites, their interest levels are sure to rise.