Ontario’s online gambling market has reached a staggering milestone, with players spending an unprecedented CA$22.7 billion in the third quarter of the fiscal year. The figures, released by iGaming Ontario, underline the growth of the province’s regulated online gambling industry since its launch in April 2022.
Monthly Reporting Brings Greater Transparency
Previously, iGaming Ontario released quarterly data, but a switch to monthly reports promises more frequent insights into the booming market. This change aligns with the growing demand for transparency and allows stakeholders to track progress more closely. Ontario’s detailed monthly reporting now offers a clearer picture of market trends since the legalisation of online gambling.
Online Casino Dominates the Market
The online casino segment continues to dominate, reflecting the preferences of Ontario’s gamblers. Of the CA$22.7 billion spent in Q3, CA$18.9 billion came from online casino activities, a 38% increase from the same period in 2023. This marks a significant achievement for the sector, which has consistently outperformed sports betting and poker.
Sports betting, including esports, accounted for CA$3.4 billion, showing a modest 10% year-on-year increase. Peer-to-peer poker, meanwhile, saw a slight decline, with spending down 3% to CA$418 million. These figures highlight the online casino sector’s unrivalled appeal among Ontario players.
Revenue Growth Outpaces Spending
Ontario’s online gambling revenue for Q3 reached CA$826 million, a 26% increase from the previous fiscal year and 12% higher than Q2. Online casinos contributed CA$644 million to the total, representing a 37% year-on-year growth. However, not all sectors fared as well. Sports betting revenue dipped 3% to CA$166 million, while poker revenue dropped by 6% to CA$16 million.
This revenue growth underscores the sector’s profitability, despite mixed results in certain segments. The province now hosts 50 operators running 83 gaming websites, showcasing its robust operator landscape.
December Sets New Records
The newly implemented monthly reports revealed that December was a record-breaking month. Online gambling spend hit an all-time high of CA$7.8 billion, surpassing the previous December by 28% and breaking November’s record by 4%. This surge reflects the festive period’s influence on gambling habits.
December’s online casino spending reached CA$6.5 billion, up 33% from December 2023. Sports betting climbed 9% to CA$1.1 billion, while poker spending dropped by 8% to CA$141 million. Despite a drop in poker and sports betting, the online casino sector continues to set new benchmarks.
Revenue for December came in at CA$269 million, a 19% year-on-year increase, although it fell short of November’s CA$291 million. Online casinos generated CA$224 million, marking a 36% increase compared to the previous December. Conversely, sports betting and poker revenues declined by 28% and 7%, respectively.
The Path Ahead
Ontario’s online gambling market is setting the pace for the rest of Canada, but challenges remain. The consistent growth of online casinos suggests a stable foundation, but the declining revenues in sports betting and poker could signal shifting consumer preferences or market saturation.
Ontario’s switch to monthly reporting will likely benefit both players and operators by offering greater insights into these trends. This transparency could help the industry adapt to consumer behaviour and maintain its upward trajectory.