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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The Star Entertainment Group announced that it has formalized the previously announced aspects of the arrangements agreed in principle with the NSW Treasurer, Daniel Mookhey, securing the company’s jobs commitment and cashless trial.

In line with the initial agreement from August 11, 2023, The Star entered into a Jobs Guarantee Agreement with the state of New South Wales and the United Workers Union. As a result, the casino giant agreed to maintain a minimum headcount and certain ratios of full-time, part-time and casual employees at its The Star Sydney casino.

The job guarantee is valid until June 30, 2030, the company added. It also mentioned that the commitment is still subject to certain permitted adjustments in specific circumstances.

As per the newest additions to the Casino Control Act 1992 (NSW), The Star risks penalties if it fails to comply with the jobs commitment it agreed to.

In the meantime, The Star also officialized a formal trial of cashless and carded play at its The Star Sydney property. This trial comes as New South Wales seeks to modernize its gambling industry and prevent gambling-related fraud.

Cashless gaming and carded play will be trialed at NSW casinos from August 2024, allowing the state to see whether they have the intended effect.

The Star Sydney, for example, seeks to allow its guests to play cashless on 51 poker machines and 8 gaming tables within its Sovereign Room.

The Star’s group chief executive officer and managing director, Robbie Cooke, commented on the formalization of the aforementioned agreements labeling the engagement with the NSW Government as very constructive. He added that The Star is happy to have reached these arrangements and be able to provide security to its team in Sydney.

According to Cooke, The Star is bullish on reacquiring NSW’s trust in the wake of the recent regulatory failings.

As we continue to focus on earning back the trust of the Page 2 of 2 community and implementing the reforms required to restore The Star to suitability, we are also committed to the continuation of our role as a valuable contributor to the NSW economy.

Robbie Cooke, group CEO & MD, The Star

Three weeks ago, The Star also introduced new regulations to prevent excessive gambling. Effective as of January 31, the new rules include a mandatory 15-minute break every three hours and a limit of 28 hours of gaming per week. Players will also be unable to play more than 12 hours a day.

The introduction of the new rules followed an AUD 100 million fine in Queensland.

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Crown Resorts will cut 180 jobs and reduce operating hours at its Sydney casino due to a lack of patronage.

The decision, which was announced to staff earlier this week, comes only two months after the Barangaroo property was forced to close one of its gaming floors.

It means Crown Sydney has now axed 275 positions since opening its doors in August last year.

No longer able to justify remaining open 24 hours a day, the casino will now operate between 10am until 2am from Monday to Thursday and until 4am on Fridays.

The gaming floors will open at 2pm on weekends, closing at 4am on Saturdays and 2am on Sundays.

Crown Sydney CEO Mark McWhinnie said the company was committed to finding the affected staff other roles at its Melbourne and Perth casinos.

“Our priority is to support the 180 impacted team members alongside their union as they determine their next steps,” he said.

Both Crown Resorts and rival operator Star Entertainment have struggled to recover from major regulatory penalties levied against their Australian casinos in the past two years.

Both companies were subject to Royal Commissions that uncovered massive operational failings with regard to anti money laundering (AML) and counter terrorism financing (CTF) regulations, resulting in record fines and licence suspensions.

They have also been affected by significant changes to New South Wales’ gambling tax laws.

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As the bidding and pitching process for new casinos to win licenses in and around New York City heats up, we’ll be taking a closer look at some of the local potential impacts. Known collectively as the “downstate New York” casino license tender, at least one new casino will open with two other full-fledged casino licenses possibly going to existing lottery casinos in the area.

The first and second licenses are “widely believed” to be destined for the walls of Resorts World New York in Jamaica, Queens, and MGM’s Empire City Casino at Yonkers Raceway in that city. Both locations already host large and popular video lottery terminal-fed (VLT) slot machines and table games and could conceivably garner one or both of the first licenses while a third license is entirely up for grabs under costly terms and potentially huge financial benefits.

The Minimum Bid is $500 Million

The minimum bid for each of the three licenses is half a billion dollars, however, as observers have noted in the past, the NYC area could be the biggest untapped casino market on earth with a populace of some 19 million people.

The Brooklyn Paper will be the main source for our article today along with our own reporting and a bag of facts generated by gambling authorities in the state, the World Casino Directory, and other sources as noted throughout the story.

Thor Equities is looking to develop property it owns on Coney Island, a historical icon as well as a southern Brooklyn neighborhood where opinions run hot and cold as well as tepidly indifferent to the prospects of a large new Las Vegas-style casino and entertainment complex there.

Developers believe some 4,000 new jobs would be directly and indirectly created in Brooklyn if the consortium’s eventual bid is ultimately accepted. Not only jobs but good-paying union jobs according to former New York City council member and a pro-casino task force member, Robert Cornegy.

According to the local paper, Cornegy believes that jobs with a decent wage and year-round employment would be created in the neighborhood between gaming, hospitality, and hotel operators opening doors to the middle class for many people who have not had such opportunities in front of them in some time.

Cornegy reportedly told Brooklyn Paper: “Being able to bring decent paying, year-round jobs is something that I feel like I am compelled to push and demand.

“For people of color, black people in particular, labor has created a pathway to the middle class in a lot of different industries. The hotel trade is one of the more lucrative opportunities.”

While some people don’t hold these sorts of jobs in high esteem, Cornegy says they can pay as much as $30 per hour and offer a chance at upward mobility as well as enticing benefits.

He particularly focused on the fact that the neighborhood already has its own “brand” and that built-in advantage could be wasted if it’s not used.

Community Board 13 is a New York City government entity that serves the areas of Brighton Beach, Coney Island, Gravesend, and Sea Gate. Public meetings are still held via Zoom rather than in person but the Board is still active.

Community Board 13 chair, Lucy Mujica Diaz seems to be wary of that number and told the Papoer that she wonders what percentage of those jobs would actually go to community members and stated that the jobs might not be the best match for many community members.

Mujica Diaz is quoted as saying, “I don’t see someone in hospitality lasting that long,” according to Brooklyn Paper. “I don’t think it would be a good fit for some of the people because there are still unanswered questions.”

Statistics for the neighborhood show a slightly higher unemployment rate than the rest of the city overall with 5.6% in Kings County compared to 5.3% for NYC overall.

A member of the “casino bidding team” purportedly stated that recruitment and job training would be preferentially provided to locals. Local job fairs and other “pipelines” of opportunity would also be afforded to local citizens. It may be of interest to note that when Bally’s was pitching its Chicago Casino, the first real casino ever in the nation’s third-largest city, a promised number of jobs and matches was part of the package.

According to Carnegie’s thinking: “I think it’s important to note how far, even when we talk about the disparities in the city, those disparity numbers are always increased in a place like Coney Island,” he said.

Diaz noted that the neighborhood’s current seasonal nature can feed into the lack of job opportunities as well. The Coney Island poverty rate is reportedly 24% while that of the city overall stands at 20%. She worries that locals wouldn’t apply for the obs as even making a single dollar more in salary can increase the rent people in public housing must pay. Over 100,000 New Yorkers live in one of the 79 developments operated by the New York City Housing Authority with about 11,000 Community Board 13 area residents being part of that number. C13 also serves Brighton Beach.

Better Pay is Not Always Attractive

Diaz explained in more detail how the current structure of eligibility for that housing complicates matters and asserted she was confident that not even 50% of the jobs would go to locals. Some senior residents simply don’t want or need full-time “lucrative” employment as the income would simply lower the income insurance benefits they already receive from Social Security.

There are regular community members who are opposed to the casino being located there as well. However, when it comes to “grassroots” organizations it’s not always easy or even possible to know true motives as casino license competitors and other “stakeholders” can easily influence the voice of opposition movements when checks and balances are not established prior the bidding process getting underway. Preliminary bidding for the licenses has officially been underway for several months.

The Paper noted that casino proponents are still in the process of “workshopping” a proposal and haven’t completed their RFP or Request for Proposal which city casino planners began offering in early January.

The state has still not published a submission date for the proposals being sought by the New York State Gaming Facility Location Board.

Cornegy maintains the project would be good for job creation. “This project looks to be one of the largest job creators in southern Brooklyn,” he said.

Source: Developers say proposed Coney Island casino would bring 4,000 new jobs to the People’s Playground, The Brooklyn Paper, June 15, 2023

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A new bill backed by Maryland lawmaker Nick Charles will seek to make it possible for released prisoners who have not committed violent crimes to find jobs at casino floors and get back to their normal lives.

Maryland Wants to Offer Ex-Convicts a Fighting Chance

The bill will still single out some crimes and consider them non-eligible for holding a job in the industry. Presently, the proposal is being moved through the House of Representatives, but there hasn’t been a floor vote just yet.

The bill also seeks to amend the current Maryland law that effectively prevents people on parole, probation or conviction to apply for jobs at a lottery or gambling venue for a period of at least seven years starting from the date of the offense.

However, this new law would do away with some of the needless restrictions and make it so that people who are willing to reintegrate into society have places to find employment. Essentially, offenders whose crimes aren’t linked to gambling will have the opportunity to now apply for a job at any of the six Maryland casinos.

Charles is confident that this is the way forward for the industry and the penal justice system. Reintegration is a key part of making sure that people do not slide into bad habits or return back to prison. “The goal is for everybody to be re-acclimated in society and be productive citizens,” the lawmaker told WTOP.com.

He is confident that people who are battling various addictions that led to their crimes would now be able to get a proper job and sustain themselves while turning their lives around. Charles meant specifically substances-abuse, such as alcohol, when he spoke about addictions.

“So this is a great opportunity for them to get that second chance,” the lawmaker assured, while casinos will also have a larger pool of employees to pick from.

Maryland Has Been Trying for Many Years Now

But the issue is not new. Attempts to open the gambling job market to ex-convicts have been going on for many years since 2013 at the very least.

Back then, a bill made it out of the General Assembly, but it didn’t really clear anything past that. Meanwhile, law enforcement and judicial experts and people with criminal records have affirmed that being cut off from the gambling market has made people more likely to go back to their bad habits.

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