Ontario’s regulated iGaming market is reporting an outstanding performance in its financial year’s first quarter. Online casino games have taken the lead, contributing over 80% of bets and 70% of total revenue.
An impressive CA$14.0bn was wagered by Ontario’s iGaming customers over the three months ending 30 June, reflecting a substantial increase from the $4.1bn staked in Q2 2022, when the market launched.
Post-payout, operators reported revenues soaring to $545m, a 236% annual rise. The number of licensed operators in the market marginally increased to 46, albeit with a slight dip in active sites to 71. With around 920,000 active player accounts, the average monthly spend was calculated at $197.
A Deeper Dive into the Figures
iGaming Ontario, the local regulator, has for the first time, provided a breakdown of stakes revenue by vertical for the first quarter. Unsurprisingly, the online casino segment dominates.
Casino games, including slots, live and computer-based table games, and peer-to-peer bingo, chalked up $11.6bn in wagers, comprising 83% of the quarter’s total. After winnings, icasino contributed $392m, or 72% of the market revenue.
Betting on sports accounted for $2.0bn in wagers, generating $138m for licensees, while peer-to-peer poker stakes reached $350m, producing $15m in revenue.
Further analysis of Ontario’s iGaming landscape showed slots as the most popular casino product, making up about 48% of icasino wagers. This implies that in the first year, $13.2bn was staked on slots. Live table games and electronic tables accounted for roughly 32% and $5.2bn of the wagered amounts, respectively.
In sports, basketball emerged as the most favored, making up 29% ($2.0bn) of the handle. Soccer, at $1.1bn (15% of stakes), and football, at $910m (13%), followed closely. Poker accounted for $992m of total wagers for FY 2022-23, and $40m of gaming revenue.
Implications for the iGaming Industry
The unfolding scene in Ontario’s iGaming sector has several implications:
- The surge in online casino popularity may inspire iGaming operators to innovate and expand their offerings in this vertical, leading to a more diverse and competitive market.
- The dominance of online casinos could drive other provinces in Canada to fast-track their iGaming legalization processes, following Ontario’s successful model.
- The high volume of wagers suggests a high degree of consumer trust in the regulated market, hinting at the possibility of further growth in customer base and market revenue.