Over the last few years, the online entertainment industry in North America has changed drastically. Not only has online streaming continued to take over from linear television, expanding into a mass of options that will almost certainly lead to a consolidation of the market soon, but another type of entertainment has also landed. Well established in Europe for well over a decade, iGaming is now entrenched across the US and Canada.
Having launched in 2023, Ontario became the first place for regulated online gaming in Canada, following in the footsteps of New Jersey, Delaware, Nevada, and several others in the south. It took a long time to decide how to approach the new form of online entertainment, but based on the results so far, the process has worked and is now paying off for the province and players alike.
A year-and-a-half of iGaming in Ontario
Source: Unsplash
Ontario is almost always the main Canadian market that incoming industries target. Being home to both Toronto and Ottawa, there are a lot of people to appeal to in the province, especially for entertainment brands. On April 4 of last year, the province opened its closely regulated iGaming scene in which operators had to be licensed to operate and adhere to set regulations. As a result, iGaming has flourished.
Already, there are over 40 licensed casinos in Ontario and over 5,000 games certified for Canadian play. Showcasing the broad appeal of this expansive world of real money gaming, it was found that 85 percent of gamblers in Ontario bet their money at regulated sites. Before regulation came in, 70 percent went to unlicensed providers.
Players get to choose from thousands of world-class slots, can instantly join a live casino table in play, and collect welcome bonuses. So, it’s not a surprise that the regulation has led to such quick adoption. The success of iGaming even goes beyond the player-facing angle. It has created more jobs locally, which reportedly pay upwards of 40 percent more annually than the average for the province. Plus, the province gets to tax the platforms.
Jobs and tax income powering Ontario’s online gambling scene
Source: Pixabay
When online gambling arrived in the US, a huge amount of the focus was on sports betting. In fact, even with over half of the states legalizing at least online sports betting, only a handful run online casino gaming platforms. In Ontario, online casino games have proven to be the most popular in quite some way. Of the $14 billion wagered from April 1 to June 30 this year, $11.6 billion was bet on casino games.
In 2023/24, from Q1 to Q2, the $545 million in total gaming revenue actually decreased to $540 million despite wagers going up from $14 billion to $14.2 billion, according to the market reports. Of that, roughly $1 billion in revenue made each year, 20 percent goes to the province by way of annual tax, which is actually very competitive in the worldwide iGaming industry. So, there’s plenty to be gained by businesses and the province.
The iGaming industry of Ontario is thriving, clearly appealing to the residents as a form of entertainment while bringing a good chunk of cash to the province through taxes. Perhaps it won’t be long before other provinces follow suit.
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