Ontario’s regulated iGaming market has made significant economic strides, generating more than CAD$2 billion in revenue for the provincial government since its inception two years ago. According to a recent report by Deloitte, in its second year, Ontario’s competitive iGaming market (excluding the Ontario Lottery and Gaming Corporation’s iGaming offering) has sustained nearly 15,000 full-time equivalent jobs, marking an increase of 2,800 jobs from the first year.

A Recognized Leader in iGaming

“Our made-in-Ontario iGaming sector is being recognized internationally for its success as a leader in this space,” said Ontario Attorney General Doug Downey. “Working together with our partners and industry, we will continue to drive innovation and deliver robust player protections, all while displacing the unregulated market. Our iGaming sector is not only a job creator here in Ontario but it shows the world our ongoing commitment to building a sustainable and responsible iGaming industry.”

Deloitte’s report highlights that the total government revenue generated through the iGaming market reached $1.24 billion in the second year. This revenue includes $790 million supporting provincial government revenue, $75 million bolstering municipal government revenues, and $380 million aiding federal government revenue.

“This report puts Ontario’s iGaming market government revenue contribution at over $2 billion since it launched and with job contribution up by 24% from its first year, the benefits to Ontarians are significant,” said Heidi Reinhart, chair of the iGaming Ontario board.

Economic Contributions and Growth

Ontario’s iGaming market contributed $2.7 billion to Ontario’s GDP in its second year of operation, up from $1.58 billion in the first year. For every dollar spent by iGaming operations, an estimated $1.40 of GDP was supported in the Ontario economy, an increase from $1.14 in the first year.

The iGaming market has already achieved or nearly reached many of Deloitte’s year-five projections in its second year, with government revenue at 94%, direct jobs sustained at 120%, total full-time jobs sustained at 9%, and GDP contributions at 93% of the initial expectations.

“Through the development and growth of Ontario’s regulated iGaming market, we’re helping achieve the government’s goals in terms of job creation, innovation, and development while providing a safer experience for consumers,” added Martha Otton, executive director of iGaming Ontario.

Detailed Economic Impact

The report from Deloitte indicates that Ontario’s regulated iGaming market sustained 14,935 full-time equivalent jobs in its second year, a significant increase from the previous year. The market’s contribution to the GDP amounted to $2.7 billion, with a notable portion of $1.3 billion supporting labor income. This economic activity resulted from both operational activities and capital investments by licensed iGaming operators.

The breakdown of government revenue supported by the iGaming market is substantial: $790 million in provincial government revenue, $75 million in municipal government revenue, and $380 million in federal government revenue. These revenues include various taxes such as the Harmonized Sales Tax (HST), property taxes, and corporate and personal income taxes.

Comparing Year 1 and Year 2 Results

The growth from Year 1 to Year 2 of Ontario’s regulated iGaming market is significant. The estimated contribution to Ontario’s GDP grew by 70%, from $1.6 billion to $2.7 billion. The contribution to labor income increased by 45%, rising from $905 million to $1.3 billion. Employment contributions saw a 24% rise, growing from 12,070 full-time equivalent jobs to 14,935. Additionally, the contribution to provincial and municipal government revenue in Ontario increased by 66%, from $525 million to $865 million.

This robust growth illustrates the dynamic impact of Ontario’s regulated iGaming market on the province’s economy. The sector not only creates jobs but also drives significant revenue for the government, supporting a variety of public services and initiatives.

Source:

ONTARIO IGAMING MARKET SUSTAINING 15,000 JOBS IN SECOND YEAR SINCE LAUNCH, gamingintelligence.com, June 20, 2024.

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Naskila Entertainment is a small, slots-only casino in Polk County, Texas with an outsized impact on the local economy. In fact, it’s really an electronic bingo facility but visitors get the feeling they are playing slots and most people would never know the difference – much like playing at a video lottery terminal (VLT) in a huge New York City casino.

The casino is operated by the Alabama-Coushatta Tribe of Texas on its Reservation near Livingston, about 75 miles north of Houston, a city of over two million people.

According to a report that was commissioned by the Texas Forest Country Partnership, the facility, directly and indirectly, pumped some $212 million into the county economy in 2022.

Casino Generates 800+ Permanent Jobs

TXP Inc. of Austin, the economic analysis firm that conducted the study reports that the operation is responsible for more than 800 permanent jobs, half of them at the casino, and a total payroll of $22.5 million a year collectively.

“This economic impact and these jobs would simply not exist without Naskila. Because 95 percent of Naskila’s customers come from outside of Polk County, and more than 80 percent come from outside the region, Naskila is an economic engine that benefits every stakeholder in the region,” the study stated.

According to a report in Blue Bonnet News, the Winter 2023 TXP study was the third one the Texas Forest Country Partnership had commissioned on the casino’s economic impact. The venue opened as a 15,000 sq ft slot parlor in 2016 and has had to fight until fairly recently to defend its operation as legal under the 1988 Indian Gaming Regulatory Act.

Last summer the United States Supreme Court finally put overzealous Texas prosecutors to rest over the issue when the Court confirmed the gaming center’s standing.

Steady Increase in Economic Value

The first study, done in 2018 showed an economic impact of $140 million increasing to $170m in 2020 and continuing to grow to the current $212m arrived at in the current report found here, courtesy of the Liberty County news outlet. Overall direct and indirect jobs have grown from 550 to 700 and finally to 825 found today with nearly half of them part of the casino operation itself.

Chairman of the Alabama-Coushatta Tribe of Texas Tribal Council, Ricky Sylestine commented on the study and its findings: “We are grateful that our guests, our employees, and our neighbors in Deep East Texas have allowed the impact of Naskila Casino to continue to grow,” he said. “This facility helps sustain our Tribe and our region.”

The average salary and benefits for a Naskila employee are $50,000 according to the report. The impact includes a variety of quality-of-life improvements for those who are employed directly or not in the area with funding for scholarships and additional housing on the Reservation as well as a retail center, health care clinic, and a daycare center.

“The growth of Naskila’s success is very good for Polk County,” said Polk County Judge Sydney Murphy. “Naskila draws visitors into our region and provides stable income and benefits for its employees. We know that Naskila will continue to play an important role in our county’s future.”

Source: Study finds Naskila Casino injects $212 million into local economy, Bluebonnet News, March 13, 2023

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