iGaming Ontario, a provincially-owned gambling entity has reported that the second year of regulated gaming operations in Ontario generated $2.4 billion in revenue, extensively exceeding the revenue figure reached in the first year of legalized gambling in the province. As reported, the accelerated industry’s growth extended into the first quarter of 2024 to hit the $14.6 billion record quarterly handle and contribute to a total of $63 billion in wagers handled from April 1, 2023, to March 31, 2024, in Ontario.
Accelerated Growth in Year 2:
Since the April 2022 launch of legalized gaming in the Canadian province, online casino, sports betting, and poker operations have experienced extensive growth to generate $1.3 billion in 2022. In the second year, the market continued to grow to reportedly become the second-largest North American regulated market.
71 % Revenue Increase Over Year 1:
Such continued growth has been translated into the $2.4 billion revenue level reached from April 1, 2023, to March 31, 2024, to reportedly stand for a 71.4 % increase over the prior one-year time. Likewise, $63 billion in wagers handled over the subject period represents a 78% year-over-year increase. iGaming reports that the record $14.6 billion handle hit in the first quarter of 2024 generated $2.7 billion in revenues, the second-best result in the given one-year period.
Online Casino Operations Driving the Market:
As reported, online casinos were the main driver of the market growth in the second year after the launch. In fact, these operations generated around $1.8 billion in revenue to take a 75% market share. Wagering operations generated around $588 million, and online poker around $67 million in revenue to represent around 23% and, respectively, 2% of the overall $2.4 billion result.
At the same time, online casino revenue exceeded the first year’s figure by 88%. Poker revenue grew 64 % year-over-year, and the sports betting industry recorded a 39% growth over Year 1, according to the report.
iGaming Ontario Executive Director Martha Otton reportedly commented: “With $63 billion in wagering and $2.4 billion in gaming revenue, the second year of Ontario’s iGaming market is more than 70% bigger than the first. As the market matures into its third year, I look forward to building on this foundation of success with operators and other partners as they invest in Ontario so that Ontarians can continue to play with confidence.”
Increased Number of Player Accounts:
The Ontarian official gaming hub also reports that the one-year period that ended on March 31, 2024, featured an increasing number of regulated player accounts and a gradually reducing average monthly spend. The number of accounts reportedly grew from 1.2 million in Q4 2023 to 1.3 million in Q1 2024. Still, the rising number of players reduced the average spend from $276 in Q3 2023 to $263 in Q1 2024.
Outperforming Expectations:
According to the provincial gaming authority, the Alcohol and Gaming Commission of Ontario, players can place bets with 47 licensed operators across 77 gambling sites in the jurisdiction, testifying about a highly regulated market outperforming tax revenue projections.
The favorable revenue results seem to be a part of the entire process, according to iGO Ontario Board Chair Heidi Reinhart. “When talking about Ontario’s iGaming market, the numbers tell us a lot, but what I’m most proud of are the countless ways that our government partners, operators, responsible gambling experts, players and employees have worked together to help us create a world-class market that is Ontario-made for Ontarians,” she said.