Ontario leads the way for iGaming in Canada

Ontario leads the way for iGaming in Canada

Ontario has become the first province in Canada to launch a regulated online gaming market, opening up new opportunities for operators and players alike. The new market, called iGaming Ontario, is overseen by a subsidiary of the Alcohol and Gaming Commission of Ontario (AGCO) and aims to provide a safe and legal alternative to the existing “grey market” of offshore sites.

What is iGaming Ontario?

iGaming Ontario is the name of the new online gaming market that went live on April 4, 2023. It allows private operators to offer online casino games, sports betting, esports, and other forms of internet gambling to Ontarians, as long as they register and pay taxes to the province. Previously, Ontarians could only access online gambling through the provincial lottery corporation, PlayOLG, or through unregulated sites that operate outside of the province’s jurisdiction.

According to the province, iGaming Ontario will enable more responsible gaming, prevent underage access, and ensure compliance with applicable laws and regulations, including anti-money laundering rules. The province also expects to generate new revenue from the online gaming sector, which is estimated to be worth $500 million a year in Ontario.

How does iGaming Ontario work?

iGaming Ontario operates as a “competitive market”, meaning that multiple operators can compete for customers and offer different products and services. Operators must apply for a registration from the AGCO and meet certain standards and requirements, such as:

  • Having a physical presence in Ontario or partnering with a local entity
  • Using geolocation technology to verify that players are located in Ontario
  • Implementing responsible gambling measures, such as self-exclusion, deposit limits, and reality checks
  • Providing customer support and dispute resolution mechanisms
  • Submitting to audits and inspections by the AGCO
  • Paying a 20% tax on gross gaming revenue to the province

Ontario leads the way for iGaming in Canada

Operators can also choose to integrate with the province’s single wallet system, which allows players to use the same account and balance across different platforms. This is optional for operators, but mandatory for players who want to access PlayOLG or any future online products offered by the Ontario Lottery and Gaming Corporation (OLG).

Who are the iGaming Ontario operators?

As of April 4, 2023, there are 15 operators that have been approved by the AGCO to offer online gaming in Ontario. These include:

  • BetMGM, a joint venture between MGM Resorts and Entain, offering casino games and sports betting
  • DraftKings, a leading fantasy sports and sports betting operator in the US
  • FanDuel, another major fantasy sports and sports betting operator in the US, owned by Flutter Entertainment
  • PointsBet, an Australian-based sports betting operator with a focus on North America
  • Rivalry, a Toronto-based esports betting operator and media company
  • Score Media and Gaming, a Toronto-based sports media and betting company, recently acquired by Penn National Gaming
  • Strive Gaming, a Toronto-based platform provider for online gaming operators
  • The Stars Group, a global online gaming giant, also owned by Flutter Entertainment, offering casino games, poker, and sports betting under brands such as PokerStars, BetStars, and Full Tilt
  • Unibet, a European online gaming operator, owned by Kindred Group, offering casino games and sports betting
  • WynnBET, an online gaming arm of Wynn Resorts, offering casino games and sports betting

In addition, there are five operators that have been approved by the AGCO to offer online gaming in Ontario, but have not yet launched their products. These are:

  • Bet365, a UK-based online gaming operator, offering casino games, sports betting, and poker
  • Betway, a Malta-based online gaming operator, offering casino games and sports betting
  • Bwin, an online gaming brand owned by Entain, offering casino games and sports betting
  • PartyCasino, another online gaming brand owned by Entain, offering casino games and poker
  • William Hill, a UK-based online gaming operator, owned by Caesars Entertainment, offering casino games and sports betting

What are the benefits and challenges of iGaming Ontario?

iGaming Ontario is expected to bring several benefits to the province, such as:

  • Providing more choice and convenience for players, who can access a variety of online gaming options from their devices
  • Enhancing consumer protection and responsible gambling, by ensuring that operators follow the rules and regulations set by the AGCO
  • Creating new jobs and economic opportunities, by attracting and supporting online gaming businesses and partnerships in Ontario
  • Generating new revenue for the province, by taxing the online gaming sector and reinvesting the funds in public services and programs

However, iGaming Ontario also faces some challenges and risks, such as:

  • Competing with the existing grey market, which may still offer lower prices, higher payouts, or more attractive bonuses to players
  • Balancing the interests and expectations of different stakeholders, such as the OLG, the land-based casinos, the horse racing industry, the First Nations, and the problem gambling groups
  • Ensuring the integrity and security of the online gaming system, by preventing fraud, money laundering, match-fixing, and cyberattacks
  • Monitoring and evaluating the social and environmental impacts of online gaming, such as gambling addiction, underage gambling, and carbon emissions

What are the next steps for iGaming Ontario?

iGaming Ontario is still in its early stages and will likely evolve and expand over time. Some of the possible next steps for the online gaming market are:

  • Adding more operators and products, as the AGCO continues to review and approve new applications and registrations
  • Developing a regulatory framework for online gaming advertising, to ensure that operators follow ethical and responsible marketing practices
  • Exploring new opportunities and innovations, such as live dealer games, virtual reality, blockchain, and artificial intelligence
  • Collaborating with other jurisdictions, both within and outside Canada, to share best practices and create harmonized standards and policies

iGaming Ontario is a landmark initiative for the online gaming industry in Canada, and a potential model for other provinces to follow. As Ontario leads the way for iGaming in Canada, it will be interesting to see how the market develops and impacts the province and the country.

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