Ontario’s Q1 financial statistics from its newly regulated online gaming and sports betting market for private operators did not live up to the predictions. However, as the third quarter of 2022 is coming to a close, industry projections suggest that in its second quarter of operations, the market will deliver more revenue and record a higher number of active users.
The provincial model for private operators and websites kicked off on April 4, 2022, and for its first three months of operations, it generated a handle of CA$4.1 billion but revenue of only CA$162 million. It should be mentioned that revenue from the Ontario Lottery and Gaming Corporation’s offerings such as PROLINE+ are not included in the numbers.
Awaiting Third Quarter Results
It is expected that iGaming Ontario should release the second financial report on the local market in the upcoming weeks. Currently, all indicators point that there will be substantial growth in revenue and in active bettors. Projections see the market bring over CA$439 million in revenue in the 2022 calendar year and have a total annual growth of 7.18%.
If the predictions turn out to be correct, the Canadian online sports betting and iCasino market could expect revenue of CA$621 million within the next five years. In addition to that, an increase of player numbers is also expected. Once again, if predictions turn out to be true, the province should expect to have approximately 7.7 million users in the next few years.
Just at the end of August, the two regulators of the internet gambling market, the Alcohol and Gaming Commission of Ontario and iGaming Ontario issued the first fiscal report on the market. It applied to the period from the launch in April until June 30, 2022. For the said quarter operators and websites generated CA$4.076 billion in total handle and only CA$162 million in revenue.
In its report, the province also said that for the quarter the market had 492,000 active player accounts. Bettors had an average monthly spend of CA$113, excluding bonuses. However, there were some concerns after the first fiscal numbers, since the market had a hold of merely 3.9%. it is substantially below the one in other similar markets. For instance, for its first quarter of operations, New York had a hold of 6.63%.
Deadline for Grey Market Activities
At the start of October 2022, AGCO finally took action against the many grey-market sportsbooks that lurk in the sector. The commission said that it gives illegal platforms a deadline of October 31, 2022, to become legal in the jurisdiction and become part of the regulated iGaming model. Otherwise, they might be penalized by the local regulator.
In its press release, the regulator reminded that registrants must know, understand, and comply with all applicable regulatory conditions, including the new standards which will go into effect from October 31. Registered operators which have not yet debuted in the sector, will be required to cease unlawful activities after the deadline. If they do not abide by their future registration could be rejected.
Source: “Ontario’s Sports Betting Market Expected Revenue In Q3 2022” FINSMES, October 7, 2022