Quarter 2 Sports Betting Numbers in Ontario Remain Largely Unchanged

The Quarter 2 report from iGaming Ontario has been released, showing limited growth in activity within the province from July 1 to Sept. 30.

Yet, the summer reporting period is typically lackluster since only one of the four major North American sports is active during that time.

Although Q2 earnings in Ontario were relatively flat compared to Q1, industry experts are hopeful that wagering activity in the province will increase in Q3. The upcoming quarter will include exciting events such as NFL, NHL, and NBA games, as well as playoff baseball, which are expected to boost betting activity.

However, the Q2 betting totals in Ontario were surprising when compared to the same period in 2022, with a remarkable 132% increase at Ontario’s top sportsbooks.

$14.2 billion in wagers during Q2

iGaming Ontario reported a total of $14.2 billion in bets for Quarter 2 of 2023, showing only a slight increase of $200,000 from the previous quarter’s $14 billion.

It is worth mentioning that Q2 ended with a remarkable 132% growth compared to the same period in 2022, when Ontario’s online legal sports betting industry was just starting out.

Almost $1.9 billion, or approximately 13% of the total $14.2 billion in wagers, came from betting on sports, Esports, props, novelty bets, and exchange wagering.

Revenues dip quarter-to-quarter

Although there was a slight increase in casino gaming revenue for Q compared to the previous quarter, overall revenues declined compared to the first quarter.

Profits for Q2 were $540 million, slightly lower than the $545 million reported for Q1. The figure is based on total cash wagers, including rake fees, tournament fees, and other fees, across all operators from July 1 to Sept. 30, 2023, minus player winnings. Operating costs and other liabilities are not included in this calculation.

Nevertheless, similar to the increase in betting activity compared to the previous year, there was a significant surge in revenues from the same time frame in 2021. Gaming revenues saw a substantial rise of 105% during the reporting period between July 1 and Sept. 30, 2022.

Sports and Esports wagers accounted for approximately 22% of the total gaming revenues, totaling around $118 million.

Other relevant information from report

The iGaming Ontario Q2 report revealed that 47 operators and 71 gaming websites in the province contributed to the handle and revenue figures. These numbers, along with the financials, showed little change compared to Quarter 1.

During the Q2 reporting period, approximately 943,000 player accounts were considered active. The report defines active players as accounts that engaged in cash and/or promotional wagering activities during the specified time frame, noting that the number does not necessarily represent unique individuals due to the potential for players to have accounts with multiple Operators.

In Quarter 2, active users spent an average of $191 per month.

Casino gaming leads the way

While sports betting activity at Canada’s top sportsbooks saw growth in both the Ontario market compared to previous quarters and years, it was casino gaming that proved to be the main revenue generator for the gaming industry. This includes slots, live and computer-based table games, and peer-to-peer bingo.

In the second quarter, casino gaming accounted for $11.9 billion of the total $14.2 billion handle, representing approximately 84%. Additionally, casino gaming contributed around 75% of the total gaming revenue in the Ontario market during the same period, totaling approximately $407 million.

Looking ahead

There is no doubt that we will witness a significant increase in betting activity in the Ontario markets during Quarter 3, especially on the top sports betting websites in Canada. In the previous year, betting activity in the province almost doubled from Quarter 2 to Quarter 3.

The legal gaming industry in Ontario saw growth in all categories from Oct. 1 to Dec. 31, 2022, and similar growth is anticipated for this year.

Could wagering activity nearly double again from Q2 this year? It may not be likely, considering that the Ontario scene was still relatively new last year and was quickly attracting new bettors.

Nevertheless, Ontario will be closely watched to determine if the growth trend will persist in Canada’s sole legalized online gambling jurisdiction.