Ontario Marks milestone in iGaming industry as Handle tops C$35 billion in 2022
In the past twelve months, Canada's disappointing performances in the FIFA World Cup, NHL, NFL, and NBA have been a common theme. However, one significant change has occurred exclusively in Ontario's sports betting scene. Prior to 2022, Ontarians were restricted to the gray or illegal market for single-game sports wagers. This all changed when Ontario launched its commercial iGaming market last April, offering a legal and regulated alternative.
After a year, the results have been astonishing. Ontarians placed approximately CAD 35.6 billion in bets, generating around CAD 1.4 billion in total gaming revenue. These figures place Ontario among the top five jurisdictions for online gambling in North America. iGaming Ontario, the agency overseeing the market, reported these numbers in a press release on Tuesday. The agency combines iCasino, mobile sports betting, and online poker wagers into a single category.
The success of Ontario's iGaming market was celebrated at a reception in Toronto on Tuesday, attended by regulators, consultants, and C-suite executives. Doug Downey, Ontario's Attorney General, applauded the market's recognition as an international leader in the industry.
To ensure a competitive market, Ontario welcomed 36 operators, providing a total of 68 gaming websites as of late January, according to iGaming Ontario. This is more than double the number of operators licensed in New York and far exceeds the numbers in Colorado and New Jersey. The high level of interest in the market has been attributed to a model that emphasizes collaboration and input from the industry.
The competitive market has encouraged innovation among operators. Last July, theScore introduced a proprietary tech platform for sports betting, allowing them to offer expanded parlays and other unique products. Regulators have also taken steps to promote responsible gaming, setting limits on advertising and establishing restrictions on billboards near school zones.
Despite these regulations, Ontarians continue to flock to the regulated market. An Ipsos survey found that 85% of online gamblers in Ontario over the past three months placed bets on regulated sites. The move to the regulated market represents a significant shift in the province, with regulators aiming to provide players with high standards of operator and game integrity, fairness, and player protections.
While the market has been successful for established operators, new companies have faced start-up challenges. DraftKings and Fitzdares have expressed confidence in their ability to attract A-list sports bettors and compete with established players in the province. However, not every operator has fared well. Last month, Coolbet announced its departure from Ontario due to the competitive nature of the market and the intense promotional environment. It remains to be seen if this will be a trend in the industry.
In the second year of the market, sportsbook operators are calling for more granularity from iGaming Ontario in its reporting methodologies. The industry would like to see separate breakouts for quarterly handle and revenue figures, which would provide a more detailed picture of the market. For now, Ontario's online sports betting market stands as a significant player in the North American gaming landscape, offering a regulated and thriving alternative to the gray market.
- With the success of the Ontarian sports betting market, sportsbook operators are increasing their wagers, offering expanded parlays and unique products, such as theScore's proprietary tech platform.
- Regulators have taken measures to ensure responsible gaming in the sports betting scene, setting advertising limits and implementing restrictions on billboards near school zones.
- Despite Coolbet's departure due to market competition and promotional environment, established players like DraftKings and Fitzdares express confidence in attracting A-list sports bettors and competing in Ontario's thriving sports betting industry.
