Lisa Cheban | 21 August, 2023 11:42 | Last update on: 21 August, 2023 11:42
iGaming Ontario, a subsidiary of the Alcohol and Gaming Commission of Ontario, has released the numbers showing the performance of the market in its first full year. The report, prepared by Deloitte, analyzed the market performance up to April 26, 2023. Ontario officially opened its online gambling and betting space on April 4, 2022.
The report shows that the opening year of legal online gambling was profitable for the Canadian province, the federal government, and all parties involved. It revealed that the legal market generated a total GGR (gross gaming revenue) of slightly over $1.48 billion.
According to the research, Ontario’s iGaming market contributed around $1.58 billion to the region’s GDP (gross domestic product) and total economic activities. Of this amount, $906 million came from people employed in the industry, with Ontario’s economy receiving $1.14 of GDP for every dollar players wager at regulated online gambling sites.
The report adds that there are 45 regulated operators and 76 gambling sites in Ontario, with more operators applying to launch in the region. In the market’s first quarter, there were 18 operators with 31 gambling sites. Therefore, the latest numbers show significant growth in this sector.
In terms of revenues generated for the respective administrations, the provincial government led with $469 million, then the federal government at $238 million. The municipal government got $54 million from iGaming proceeds.
The Deloitte report also provided future forecasts in terms of economic contributions. According to the estimate, Ottawa could bring in $238 million, Queen’s Park $469 million, and local governments $54 million in 2024.
The report further predicted increases to $389 million for the federal government, $849 million for the provincial administration (Ontario), and $82 million for the municipality. In addition, the total contribution to Ontario’s GDP is projected to be $2.918 billion in the next few years.
By the sixth year of full operation, the new report says the federal government will receive $647 million in iGaming revenues, whereas the provincial government will get $1.39 million. Also, the municipal authorities will get $115 million by 2028.
Lastly, the research states that the regulated iGaming market in Ontario has created at least 12,207 jobs so far. This number will rise to 22,132 by the fifth year of full operation. The study says that the average annual salary for employees in the industry is $103,000.
Note that the report doesn’t include data collected from the Ontario Lottery and Gaming Corp. Instead, it focused solely on the potential economic contribution of the online gaming sector under iGaming Ontario.
Commenting on the report, the chair of iGaming Ontario, Dave Forestell, remarked: “Today’s report reveals that the newly regulated iGaming market in Ontario is delivering real benefits to every resident of Ontario, whether they play or not.”
Ontario’s Attorney General, Doug Downey, added: “Over the past year, Ontario’s iGaming market has been internationally recognized for creating a safe, legal and competitive landscape while supporting the province’s economy and displacing the existing unregulated market.”