Ontario’s iGaming industry is showing remarkable growth, according to the latest market performance report from iGaming Ontario. Covering the first quarter of the 2024-25 fiscal year, from April 1 to June 30, 2024, the report highlights substantial increases in both wagering and revenue compared to previous quarters and the same period last year.
Impressive Gains in Wagers and Revenue
The first quarter of FY 2024-25 saw Ontario’s regulated online gaming market handle CA$18.4 billion (US$13.3 billion) in wagers. This figure represents a 3.4% increase over the previous quarter and a robust 31% rise compared to the same quarter in the previous fiscal year. Gaming revenue also saw significant growth, reaching CA$726 million. This amount marks a 5.2% increase over Q4 and a notable 34% increase year-over-year.
This growth is not only impressive but also indicative of a maturing market that is gaining traction among Ontario’s online gamblers. With nearly 1.9 million player accounts active during the quarter and an average monthly spend of CA$284 per active player account, the province’s iGaming market continues to thrive.
Casino Games Lead the Market
A closer look at the data reveals that casino games are the driving force behind Ontario’s iGaming market. Casino games, including slots, live and computer-based table games, and peer-to-peer bingo, accounted for nearly CA$15.5 billion of wagers and CA$529 million of gaming revenue in the first quarter. These figures show the strong appeal of traditional casino games among online gamblers in Ontario, underscoring their dominance in the market.
Betting, which includes sports betting, esports, proposition and novelty bets, as well as exchange betting, also contributed significantly to the market. This segment accounted for CA$2.5 billion in wagers and CA$181 million in gaming revenue. While betting is a smaller portion of the overall market, its continued growth indicates a broadening of interests among Ontario’s online gaming community.
Strong Operator Presence and Market Expansion
The rapid growth of Ontario’s iGaming market can be attributed to several key factors, including a strong presence of regulated operators. As of the first quarter of FY 2024-25, there are 50 regulated operators active in the market, offering a wide range of gaming options to players. This competitive landscape has been instrumental in driving both wagering and revenue growth, as operators strive to attract and retain customers through diverse offerings and attractive promotions.
Martha Otton, Executive Director of iGaming Ontario, highlighted the importance of a regulated market in fostering growth. “With 50 regulated operators and a one-third increase in wagering and revenue figures over the first quarter of last year, Ontarians who choose to gamble are finding many enjoyable options in our open regulated iGaming market,” Otton said. Her comments reflect the benefits of regulation in ensuring a safe and fair gaming environment for players.
Recap of the Second Year of Regulated iGaming
The report also provides a recap of the second year of regulated sports betting and iGaming in Ontario. According to iGaming Ontario, the market generated CA$63 billion in wagers and CA$2.4 billion in revenue in its second year. This significant performance demonstrates the rapid adoption and growth of the regulated market since its legal opening on April 4, 2022.
The impressive year-over-year growth in both wagers and revenue underscores the effectiveness of Ontario’s regulatory framework in creating a thriving iGaming market. The province’s success in this area serves as a model for other jurisdictions looking to establish or enhance their own online gaming industries.
Factors Driving Ontario’s iGaming Market Growth
Several factors have contributed to the growth of Ontario’s iGaming market. One of the primary drivers is the establishment of a regulated environment that provides a safe and reliable platform for players. According to iGaming Ontario, more than 86% of Ontarians who play online are choosing regulated sites, indicating a strong preference for safe and secure gambling options.
The diversity of game offerings is another key factor. With a wide range of gaming options available, from traditional casino games to innovative betting formats, Ontario’s iGaming market caters to a broad spectrum of player preferences. This diversity is reflected in the report’s data, which shows that casino games are particularly popular, generating the majority of wagers and revenue.
Technological advancements have also played a significant role in enhancing the attractiveness of iGaming platforms. Modern technologies have enabled the development of more engaging and interactive games, which are appealing to a growing number of players. These advancements are likely driving higher levels of participation and spending among Ontario’s online gamblers.
The Role of Marketing and Public Awareness
Marketing and promotions have been crucial in attracting new players and retaining existing ones. The presence of multiple regulated operators in the market fosters healthy competition, leading to a variety of promotions and marketing campaigns aimed at acquiring and retaining players. This competitive environment benefits consumers, who are often enticed by generous offers and diverse gaming experiences.
Public awareness and education efforts have also contributed to the market’s growth. By educating the public about the benefits of regulated online gambling sites, iGaming Ontario and other stakeholders have helped to shift player behavior towards safer, regulated options. This increased awareness is likely contributing to the high percentage of Ontarians choosing to play on regulated sites.
Future Outlook for Ontario’s iGaming Market
Looking ahead, the future of Ontario’s iGaming market appears bright. The continuous growth in wagers and revenue suggests a strong demand for online gambling services in the province. As more operators enter the market and existing operators expand their offerings, players will have even more choices, which could further drive engagement and spending.
Technological innovations are expected to continue shaping the market, with the potential introduction of new game types and features likely to attract a broader audience. Additionally, the focus on responsible gambling and player protection will remain crucial to maintaining trust and ensuring the long-term sustainability of the market.
iGaming Ontario’s proactive approach in monitoring and regulating the market will be key to fostering a safe and dynamic online gambling environment. By continuing to adapt to changing market conditions and player preferences, Ontario is well-positioned to maintain its status as a leading iGaming jurisdiction.
The first quarter of the 2024-25 fiscal year has set a strong precedent for Ontario’s iGaming industry. With substantial increases in both wagers and revenue, along with a growing number of active player accounts, the market is clearly thriving. As Ontario continues to enhance its regulatory framework and expand its gaming options, the province’s iGaming market is poised for sustained growth and success.