As we find ourselves at the midpoint of the fiscal year and stakeholders await the next quarter report for the gambling industry in Ontario, comparisons between datasets that were already published offer critical insights into the market’s trajectory.
The iGaming Ontario in 2023 report, made by Deloitte in conjunction with iGO, provides a comprehensive overview of the sector’s first full fiscal year.
Meanwhile, two already released quarterly reports from 2024 also paint a picture of a rapidly changing industry—and one that is exceeding initial expectations.
Fiscal Year 2023: A Strong Foundation
Since its structuring and regulation in 2022, the iGaming and gambling market in Ontario has demonstrated exceptional growth.
The fiscal year ending April 3, 2024, marked the province’s second full year of regulated iGaming operations. According to the iGaming Ontario 2023 report, the industry contributed $2.4 billion to the province’s GDP, up from $1.5 billion in its first full year.
Casino games—including slots, live dealer tables, and digital table games—were the leading revenue generators, accounting for most of the $63 billion in total wagers placed throughout the year.
Government revenues surpassed $1 billion, with funds allocated to healthcare, education, and infrastructure projects. Employment was also a standout metric, with the industry supporting over 15,000 full-time equivalent jobs, including roles in technology, customer service, and operations.
The 2023 fiscal year exceeded many initial expectations, positioning Ontario as a regulated online gaming sector leader. This success set the stage for further expansion and paved the way for even more impressive quarterly results in 2024.
First Quarter of 2024: Momentum Builds
The first quarter of the 2024-25 fiscal year, spanning April 1 to June 30, 2024, reflected the industry’s continued growth.
Total wagers reached $18.4 billion, marking a 31% increase compared to the same quarter in the previous year. Gaming revenue climbed to $726 million, representing a 34% year-over-year increase.
Casino games maintained their dominant position, accounting for 84% of all wagers and generating $529 million in revenue. Sports betting, a growing segment, contributed 14% of wagers, while P2P poker accounted for 2%.
Player engagement metrics also showed improvement. Each individual account spent an average of $284, a rise driven by an increase in the variety of games and enhanced trust in the market.
Notably, the number of operators active in the market expanded to 50, operating 80 licensed gaming websites.
Second Quarter of 2024: Sustaining Growth
The second quarter of the 2024 fiscal year, covering July 1 to September 30, continued the upward trajectory, albeit at a more measured pace.
Total wagers rose to $18.7 billion, a modest 1.6% quarter-over-quarter increase but still a 31.7% rise compared to Q2 2023. Gaming revenue reached $738 million, reflecting a 1.7% increase from Q1 and a 35.4% year-over-year improvement.
Casino games once again led the market, accounting for 86% of wagers and 75% of total revenue. Betting, including sports and novelty bets, maintained its 12% share of wagers, while poker remained steady at 2%.
Active player accounts exceeded 1.32 million during the quarter, with the average monthly spend per account increasing to $308.
Government revenue contributions for Q2 surpassed $300 million, bringing the cumulative 2024 total to over $600 million. These funds continued to support critical provincial initiatives, including infrastructure, healthcare, and education.
Comparing between iGaming Ontario in 2023 and 2024
A comparative analysis of the iGaming Ontario 2023 report and the two quarterly reports for 2024 reveals a market that is growing at an unprecedented rate. By the end of 2023, the industry had generated $1.6 billion in GDP.
The first two quarters of 2024 alone contributed $1.45 billion, signalling that the market could exceed the $2.7 billion GDP reported for the entire second fiscal year.
Employment figures also highlight the industry’s expansion. While 2023 saw 12,000 full-time equivalent jobs supported, Q2 2024 alone reported nearly 15,000 positions. Direct employment, which includes roles within regulated operators, grew by 24% year-over-year.
Government revenues further illustrate the market’s rapid growth. The $700 million recorded in fiscal year 2023 has already been surpassed in 2024, with over $600 million generated in just the first half of the year.
At this rate, the total for 2024 is expected to significantly outpace the previous year’s contributions.
Player engagement metrics, including the average monthly spend per account, have also increased steadily. The rise from $250 in 2023 to $308 in Q2 2024 reflects a growing consumer base and greater operator competition.
Anticipating the third quarter report
Several key questions remain as the industry await the third quarter report for 2024. Will the market continue its upward trajectory, or will growth begin to plateau, as some experts predict?
iGaming Ontario Executive Director Martha Otton commented that while the current pace of growth is impressive, it may not be sustainable in the long term.
Emerging trends in player preferences could play a significant role in shaping the market’s future. The growing popularity of live dealer games and the impact of major sporting events on sports betting revenue are areas to watch.
Plus, new operators entering the market and technological advancements, such as augmented reality gaming, could drive further innovation.
Consequences for the economy
The iGaming Ontario 2023 report and subsequent quarterly data for 2024 highlight the broader economic impact of the regulated iGaming sector.
For every dollar operators spend, an estimated $1.40 of GDP was supported in 2024, up from $1.14 in 2023. This multiplier effect reflects the industry’s influence on related sectors, including advertising, marketing, and technology.
Ontario’s success has also drawn international attention. The province is now viewed as a model for balancing innovation with responsible gaming practices.
Attorney General Doug Downey emphasized the importance of displacing unregulated markets, noting that Ontario’s approach prioritizes player protections while fostering economic growth.
A positive year with positive outlooks
The iGaming Ontario 2023 report and the first two quarters of 2024 underscore the remarkable growth of Ontario’s regulated iGaming market.
With billions in wagers, significant GDP contributions, and thousands of jobs created, the industry has cemented itself as a vital economic driver for the province.
As stakeholders await the next quarter’s report, the market’s continued evolution remains a focal point of interest.
Whether the sector maintains its upward momentum or begins to stabilize, one thing is clear: Ontario’s iGaming market is setting a benchmark for regulated online gaming worldwide.
