Despite advantages in population and experience, Ontario, Canada’s online gambling industry has significantly fallen behind comparable U.S. states in the 15 months it has operated its online sector, PlayCanada reported July 21.
iGaming Ontario (iGO) recently released detailed data on the online gaming sector for the first quarter of 2023-2024, ending June 30. This is the first time the province has revealed this data.
According to an analysis done by PlayCanada, Ontario divided the numbers into online casino, poker and sports betting. It also compared the first quarter statistics to that of the first full fiscal year that ran from April 1, 2022 to March 31, 2023, which was the first full year that the sector operated in the province.
During that period, Ontario’s total online gaming revenue was $1.4 billion, with $940 million from online casinos, $433 million from sports betting and $40 million from poker.
Of the total handle of $14 billion, and $545 million in total gaming revenue for the first quarter the sector was operating, 83 percent of the handle, and 72 percent of the revenue, was from online casinos, according to gaming analyst Dave Briggs. Sports betting handle was 14 percent and 25 percent of revenue and poker was 2.5 percent of handle and 2.8 percent of revenue.
The PlayCanada analysis also found that for that first full year, Ontario ranked fourth compared to five states that also offer online sports betting, including New Jersey, Pennsylvania, Michigan, Connecticut and West Virginia. It omitted Delaware, which has online casinos, but no online sports betting.
The analysis compared gambling revenue, not total bets, for the comparison.
The rankings were:
- New Jersey — $2.5 billion
- Pennsylvania — $2.4 billion
- Michigan — $2.1 billion
- Ontario — $1.06 billion (expressed in U.S. dollars)
- Connecticut — $465 million
- West Virginia — $171.6 million
Ontario’s revenue grew 217 percent from the first quarter to the fourth quarter. It did not include the Ontario Lottery & Gaming Corp’s online operation’s revenue. Yet OLG’s figures are significant and last year was its “strongest financial performance on record” according to President and CEO Duncan Hannay.” The online component is considered to be the strongest driver of the lottery.
However, PlayCanada points out that the province has more gaming operators, 46 currently, with more on the way, than the comparable states. Plus the largest population: 15.5 million, which is nearly half of Canada’s total. Moreover, the province’s players have been exposed to and participated in the online gray and black market for nearly two decades.
On the other hand, Ontario does not allow ads for bonuses, inducements and credits, which could make it harder to get customers than in the U.S., said Briggs.
It notes that online casinos are the driving force behind the gaming sector in all the jurisdictions. In that arena, New Jersey, Pennsylvania and Michigan revenue numbers were double that of Ontario.
Online casino revenues for the first year of operation in Ontario (April 1, 2022-March 31, 2023) compared to the other jurisdictions was as follows:
- Pennsylvania — $1.77 billion
- New Jersey — $1.72 billion
- Michigan — $1.68 billion
- Ontario — $711 million (expressed in U.S. dollars)
- Connecticut — $311.5 million
- West Virginia — $127 million
Sports betting revenue for that same period was as follows:
- New Jersey — $780.4 million
- Pennsylvania — $609.3 million
- Michigan — $412.8 million
- Ontario — $328 million (expressed in U.S. dollars)
- Connecticut — $153.4 million
- West Virginia — $44.8 million
PlayCanada notes that the difference between the province’s online casinos and sportsbooks is growing, and so is the taxes those revenues are generating.
In the first year, Ontario’s percentage from online casinos was 65 percent. By the first quarter of this year, that had increased to 72 percent and that gap was growing.
