Ontario’s iGaming Market Shows Significant Growth in Q2 FY 2024-25
Posted on: October 26, 2024
Last updated on: October 26, 2024
Image/iGaming Ontario chart
The latest financial performance report released by iGaming Ontario for the second quarter of the fiscal year 2024-25 highlights a remarkable upward trend in the region’s online gaming market. Paul Burns, President and CEO of the Canadian Gaming Association, emphasized that these figures showcase a "matured" market, hinting at a healthy and sustainable future for both operators and the province’s economy.
Positive Financial Indicators
According to the newly published report, total wagers in Ontario’s iGaming market reached an impressive $18.7 billion in Q2, marking a modest increase of 1.6% compared to the previous quarter and a striking 31.7% jump from Q2 the previous year. Correspondingly, total gaming revenue in the province hit $738 million, reflecting a 1.7% quarterly increase and a notable 35.4% year-over-year growth.
This growth trajectory aligns with the launch of the open and competitive iGaming market in Ontario in April 2022, which has allowed for a variety of operators to thrive, although the numbers do not include revenues generated from the government-operated Ontario Lottery and Gaming Corporation.
Insights from the Industry
During a recent panel discussion at the Gaming Expo in Las Vegas, Martha Otton, Executive Director of iGaming Ontario, shared insights into the performance metrics that reflect a maturing market. Burns noted, “Operators have hit their stride, advertising is leveling off, and the Alcohol and Gaming Commission of Ontario (AGCO) alongside iGaming Ontario (iGO) are continuously welcoming more operators to the market.” This development is crucial as it helps replace the handful of operators that have exited the Ontario market.
As highlighted in Burns’ statement, the report underscores a shift in dynamics— with overall market performance now mirroring a mature industry rather than one that is still establishing its presence. He stressed, "Overall numbers are now more representative of a mature market versus a new one, and it points to long-term sustainability for both the province and the industry."
Comprehensive Market Dynamics
The report, which encompasses data from July 1 to September 30, 2024, revealed that the market boasted 51 active operators and 83 licensed gaming websites. However, there was a decline in the number of active player accounts, which fell from 1.9 million in Q1 to 1.32 million in Q2. Interestingly, the average monthly expenditure per active player account saw an increase, rising to $308 from $284 in the previous quarter.
Dominance of the Casino Segment
A closer look at the distribution of wagers within the market shows that the casino segment continues to dominate, accounting for an impressive 86% of total wagers, amounting to roughly $16 billion. Within this segment, gaming revenue reached $553 million, representing 75% of the overall revenue. Comparatively, sports betting—including esports, proposition, and novelty bets—constituted 12% of total wagers ($2.2 billion) and produced $167 million in revenue, while peer-to-peer poker accounted for 2.2% of wagers ($417 million) and $18 million in revenue.
Looking Ahead
As Ontario’s iGaming market progresses, other regions are taking cues from its regulatory model. Alberta, for instance, is actively working on establishing an Ontario-style iGaming regulatory framework, aiming for a launch sometime in 2025. Such developments underscore the influence and success of Ontario’s strategy, positioning it as a leader in the Canadian gaming landscape.
The data released paints an optimistic picture for Ontario’s iGaming industry—showcasing growth, operational stability, and a sound regulatory framework that could serve as a blueprint for other provinces moving forward. As the market matures, stakeholders remain hopeful that it will continue delivering robust economic benefits for both the gaming industry and the wider community in Ontario.
