Gambling Industry in Ontario Shows First-Quarter Strength

Vladimir Guerrero Jr. of the Toronto Blue Jays waits to bat against the Detroit Tigers at Comerica Park as we look at the Ontario first-quarter numbers. — Vladimir Guerrero Jr. of the Toronto Blue Jays waits to bat against the Detroit Tigers at Comerica Park. Photo by Gregory Shamus/Getty Images/AFP.

The Ontario gambling market, which is regulated by law, is thriving. The latest iGaming Ontario report for the first quarter of 2023 showed an increase in betting activity in the province’s legal online gambling industry compared to the previous year, including some of the top betting sites in Canada. The numbers also showed consistent performance from April 1 to June 30 compared to the previous quarter.

There was minimal fluctuation in performance during the fourth quarter, despite the absence of NFL, March Madness, and reduced playoff schedules in the NHL and NBA.

But the significant increase in wagering from year to year during the first quarter was one of the standout features of the iGO report.

Although sports betting has received significant attention in Ontario, online casinos accounted for the majority of betting activity. While sports wagering remained an important aspect of legal gambling revenues for the province, it was overshadowed by casino games, which far surpassed sports betting in terms of total wagers and gaming revenue.

First, the total Q1 numbers

According to the iGO report, Ontario legal gambling betting sites saw a total of $14.0 billion in wagers during the first quarter of 2023, not including free bets or promotional wagers.

The report indicated that $545 million in gaming revenues was generated by 24 operators in the Ontario legal gambling market and 71 gaming websites. During the period of April 1-June 30, there were a total of 920,000 active player accounts in Ontario. On average, users spent $197 per month on Ontario sports betting apps, mobile casinos, and online poker rooms.

Comparison to other quarters

The figures stayed relatively consistent during the fourth quarter of 2022 as the NFL season was in full swing, and Ontario sports fans were placing bets on the Toronto Maple Leafs and Toronto Raptors.

In the fourth quarter of 2022, a total iGaming handle of $13.9 billion was reported, generating $526 million in revenue. This is slightly lower than the $14 billion wagered and $545 million in revenues reported in the previous quarter.

On the other hand, the number of accounts on Ontario betting sites decreased from one quarter to another. In the fourth quarter of last year, there were 1.01 million accounts across 75 sites, while this past quarter saw only 920,000 users on 71 Ontario sports betting sites.

Comparing the figures for legal gambling in Ontario year-over-year showed a significant increase in handle and revenues, with the surge attributed to the introduction of legal online gambling in Ontario on April 4, 2022.

During the initial phase of legal gambling in the province, bettors wagered $4.1 billion, compared to the $14 billion wagered in the most recent quarter. Revenue for the period of April 4-June 30, 2022, was only $162 million, in contrast to the $545 million reported for the previous period ending June 30.

Online casinos dominate sports betting

According to the figures released last Wednesday, sports betting did not dominate gambling activity or revenues in Ontario. The iGO report provided a detailed breakdown of where the majority of revenues originated from for the first time.

In Ontario, online casinos, which offer a variety of games such as slots, live and computer-based table games, and peer-to-peer bingo, accounted for 83% of total wagers in the first quarter, totaling $11.6 billion out of the $14 billion handle. Sports betting contributed $2 billion, making up 14% of the overall handle, while peer-to-peer poker accounted for the remaining 3% with approximately $350 million in wagers.

Once again, online casinos were the primary source of revenue in Ontario, bringing in $392 million during the first quarter, accounting for 72% of the total gaming revenues. Ontario sports betting apps contributed 25% of revenues, totaling $138 million, while poker generated $15 million, making up approximately 3% of the total revenue.

Catching up on the lifetime Ontario gambling numbers

As of June 30, the Ontario legal gambling market had completed five full quarters of operation. The online casinos and Ontario sports betting apps have proven to be successful during the first 15 months of business.

According to the iGO, the Ontario market has seen $35.6 billion in legal wagers and a total gaming revenue of $1.4 billion to date.

Not surprisingly, the majority of activity came from online casinos. Ontario’s online casinos accounted for $27.6 billion in wagers (78%) and $940 million in revenues (67%).

In the Ontario market, sports betting has generated $7 billion in lifetime bets (20% of the total) and $433 million in revenues (31%). Poker, on the other hand, has accounted for $992 million in total bets over 15 months (3%) and $40 million in revenues (3%).

Written By:
Perry Sandra

Perry Sandra and betting go hand-in-hand. Both are characterized by “odds”. Dave fancies himself as one of the most dedicated sports and pop-culture junkies around, to the chagrin of his family and friends. Following sports for 50 years and writing about it for 20, Dave hasn’t found a sport yet that can’t contribute to 2-3 straight hours of couch time. That search remains ongoing. As a good old Canadian boy, hockey is in Dave’s heart, as is curling sadly. But evolution is a real thing and that’s why football, baseball, and just about every sport on the planet has become a passion. Dave isn’t afraid to kill some time obsessing over politics or the far-too-frequent awards shows the consume the airwaves.