Lisa Cheban | 10 August, 2023 10:43 | Last update on: 10 August, 2023 10:43
iGaming Ontario, the regulator of the online gambling market in Ontario, Canada, has released a report for the market performance in Q1 of 2023/2024 (April 1 to June 30, 2023). This is the first time the province has revealed the total revenue collected by internet gaming.
The latest report shows that the relatively new iGaming industry is expanding rapidly. It shows online casinos lead the pack with C$14 billion in total bets. Of this amount, 83% (C$11.6 billion) was collected as gaming handles, whereas 72% (C$392 million) as revenues. The total gaming revenue stands at C$545 million over those three months.
If this report from iGaming Ontario is anything to go by, you can conclude that online gambling sites now make up a larger portion of the overall gaming market than they did a year ago. Last year, casino games, including slots, live dealer games, and RNG table games, accounted for 78% of total handles and 67% of gaming income.
Despite receiving lots of publicity in Ontario, online gambling still outguns sports betting in the online gambling industry. Comparatively, Ontario’s sports betting sites handled C$2 billion in bets in Q1, representing 14% of total bets. Revenue-wise, the online sports betting industry contributed 25% (C$138 million).
Interestingly, the industry’s regulator also had separate numbers for the online poker industry. According to the report, regulated poker sites accepted C$350 million in bets, generating C$15 million in revenue for the province.
As always, it’s crucial to note that the iGaming Ontario numbers exclude any data from the Ontario Lottery and Gaming Corporation’s online operations. Remember, the OLG is a prominent online operator in Ontario.
OLG President and CEO Duncan Hannay stated at the Canadian Gaming Summit that last year was the operator’s strongest financial performance yet. It is general knowledge that online gambling played a significant role in the OLG’s recent record-shuttering numbers.
Another reason that makes industry experts believe that the numbers could be higher is that the regulator doesn’t allow the advertisement of bonuses, inducements, and credits. This contrasts with other jurisdictions, like the United States, where regulated operators can advertise their welcome offers and loyalty programs. Some argue that this harms Ontario’s internet gaming space as it limits maximum customer acquisition and income.
But even with that, Ontario is performing strongly than most US regulations. For example, Ohio has an average monthly sports betting handle of approximately $484 million. On the other hand, Ontario’s average is $505 if you factor in the numbers collected over the first quarter of the 2023/2024 fiscal year. This places Ontario on par with states like Nevada and New Jersey.