Ontario Sports Betting Industry Hits Record Levels in Quarter 3

It came as no shock that the sports betting and gambling industries in Canada’s sole legal jurisdiction exhibited strong growth for iGaming Ontario and our top sports betting applications.

According to the iGaming Ontario (IGO) 3rd quarter revenue report released on Wednesday, Ontario has experienced robust quarter-over-quarter growth since the legalization of iGaming in the province in April 2022.

The report analyzed data from October 1 to December 31, 2023, showing positive growth in total wagers accepted, operator revenues, gaming websites, and active player accounts in Ontario. The only decrease was in the average monthly spending of customers using sports betting apps in the province.

iGaming totals

In the three-month period ending on December 31, Ontario’s iGaming market saw a record-breaking $17.2 billion in wagers, marking a 21% increase from $14.2 billion in the previous quarter. This surge in bets represents a significant 49.2% increase from the same period in 2022, highlighting the growth of the Ontario sports betting industry.

In Q3, gaming revenues in Ontario reached a record high of $658 million, marking a 22% increase from the previous quarter and a 44% increase compared to the same period in 2022.

The total of $658 million encompasses all fees collected, including rake fees, tournament fees, and other charges from all Operators. Additionally, it includes player winnings from cash wagers and excludes operating costs and other liabilities.

By the end of 2023, there were 49 operators and 72 gaming websites actively serving the Ontario market, including some of the top sportsbooks. This indicates a strong and competitive market in the province. In Q2, there were 47 operators and 71 gaming websites in operation.

The IGO’s quarter 3 report disclosed a total of 1.2 million player accounts, showing a 31% increase from the 943,000 accounts reported in Q2. Active player accounts are those with cash and promotional wagering activity within the specified time frame, and do not necessarily represent unique players as individuals may have accounts with multiple Operators.

In Q3, the average monthly spend per active player account was $186, a decrease from $191 in Q2 and $197 in Q1.

Further breakdown

During the third quarter, casino games such as slots, live and computer-based table games, and peer-to-peer bingo wagering opportunities were the main drivers of betting activity and revenue in Ontario.

During Quarter 3, online casino gaming in Ontario accounted for $13.7 billion, representing 79% of total legal wagers in the market. These gaming opportunities generated $471 million in revenue, making up 71% of total revenues for the Ontario iGaming industry.

Ontario’s betting industry, which includes sports betting apps, prop bets, novelty bets, and exchange betting, accounted for approximately 18% of the province’s total wagering activity, totaling $3.1 billion. This represents a significant 63.2% increase from the previous quarter. The surge in activity was fueled by the introduction of NFL betting and the beginning of the NHL and NBA seasons in Q3.

In the province, profits from the “Betting” category accounted for 25% of total Q3 revenues, totaling $171 million.

In the third quarter, Peer-to-peer (P2P) poker, the final category of IGO, received $431 million in wagers, accounting for approximately 2.5% of all wagers placed in iGaming Ontario. The category generated $17 million in revenues during Q3, representing about 2.5% of the total iGaming revenues in the province.