Ontario's iGaming revenue sees 72% increase reaching $1.7B in second year of legal market

On Wednesday iGaming Ontario, the online gaming platform that regulates and approves private gaming companies in the Canadian province, released its market report for the fourth quarter of the 2023-24 period, as well as the full year, unveiling a considerable increase in total wagers and gaming revenue.

The province garnered CAD17.8 billion ($12.9 million) in total wagers in Q4, with the 2023-24 year ending at CAD63 billion ($45.7 billion), a 78% increase over 2022-23. As per the report, this figure does not include promotional wagers (bonuses). 

Meanwhile, Q4 total gaming revenue was CAD690 million ($501.3 million), with the 2023-24 period ending at CAD2.4 billion ($1.7 billion), a 72% increase over 2022-23. The report said this figure represents total cash wagers, including rake fees, tournament fees, and other fees, across all operators, player winnings derived from cash wagers and does not take into account operating costs or other liabilities. 

"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," says iGaming Ontario Executive Director Martha Otton. "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."

As for where Ontarians were spending their money, the report revealed that Ontario's gambling market was predominately driven by casino wagers, which accounted for CAD14.6 billion ($10.6 million) in Q4, contributing to an overall CAD51.7 billion ($37.5 million) for the 2023-2024 year, an 88% increase. Casino games include slots, live and computer-based table games, and peer-to-peer bingo. 

Meanwhile, Q4 saw casino gaming revenue reach CAD510 million ($370.5 million), contributing to an overall yearly total of CAD1.8 billion ($1.3 billion), marking an 89% increase over the previous year, according to the report.

Betting wagers in Q4 were CAD2.7 billion ($1.9 million), with the 2023-24 year ending at CAD9.7 billion ($7,04 billion), a 39% increase over 2022-23. Betting includes sports, esports, proposition, and novelty bets, as well as exchange betting. Additionally, betting gaming revenue in Q4 was CAD161 million ($116.9 million), with the 2023-24 year ending at CAD588 million ($427.2 million), a 36% increase over 2022-23. 

Furthermore, peer-to-peer (P2P) poker wagers in Q4 were CAD446 million ($324 million), with the 2023-24 year ending at CAD1.6 billion ($1.1 billion), a 64% increase over 2022-23. As for peer-to-peer poker gaming revenue, Q4 garnered CAD19 million ($13.8 million), with the 2023-24 year ending at CAD67 million ($48.6 million), a 67% increase over 2022-23.

The findings also revealed that during the reported period, the active player base surged, with over 1.3 million accounts engaged in gaming activity, while the average monthly spend per active player account in Q4 totaled CAD263 ($191.10).

The new findings come on the heels of the two-year mark since the Ontario government’s decision to open up the province’s online gaming market. When Ontario opened up its gaming market, the province estimated that Ontarians were placing $1 billion in online bets annually with 70% of that amount wagered on grey market sites. Just a year after the province made the move, the AGCO reported that approximately 85% of players had transitioned from grey market sites to legal wagering platforms.