NA: As things stand, I can’t fault the current regulation. In my opinion, the Ontario market is a leading example to other budding markets. So far, it’s been incredibly flexible, fair and not complex to navigate through. From our experience, the regulation process creates a level playing field, prioritising quality over local/international roots. This cultivates a healthy environment for innovation and gives exposure to those who deserve it. Here’s hoping other markets take a leaf out of their book.

AB: Ontario’s iGaming opportunity appears to be highly promising in terms of income, while also providing a high level of client protection and stringent controls. Nonetheless, the market will have to perform as expected, as it will have to demonstrate that increase security and customer protection initiatives are worthwhile and feasible. This needs to happen while also remaining lucrative, especially for European operators planning to enter during this boom.

JPR: As we covered in the first answer, I think the Ontario regulator is very on the ball with a strong framework in place. A good example of this would be their recent blocking of UFC, as there was a real fear towards integrity with suspicious betting activity. Of course, this shows both their pro-activity and focus on ensuring they provide the best (and safest) gaming environment possible for their players.

Secondly, they’ve also avoided going down the road of not dishing out excessive fines (without mentioning any European counterparts in comparison). Again, I see this as indicative that we have a free and fair regulatory environment with a framework that is very conducive towards new entrants, as well as being very welcoming to new brands coming in from overseas.

How do you see the Ontario market a year from now?

AB: According to a release from advocacy organisation iGaming Ontario, bettors spent more than $8.6 billion ($11.5 CDN) with licensed digital casino, sportsbook, and poker businesses in the third quarter of the province’s fiscal year 2022, a 91% increase from the province’s second fiscal quarter.

Over the same year, total gaming income climbed by 71% to $342 million ($457 million CDN). This amount comprises all total cash wagers, including rake, tournament and other fees, and fewer player earnings from cash wagers, according to the study.

In Q3 2022, 36 different operators took bets in the province, which is 50% higher than in Q2. These firms combined to run 68 unique regulated gambling sites, a 68% increase from the preceding quarter.

These are the greatest totals for both operators and sites in any regulated gambling market on the continent, and trends show a clear path ahead for constant progression during the next five years.

NA: A lot of US companies are launching in Ontario so this will prove to be a key stepping stone for brands to get to grips with the diverse North American market. As a result of this, there should be sharp growth in the region’s online offering both in the content provision space as well as the operator arena.

JPR: I see it thriving; it has excellent potential. Just like any ecosystem, we’ll no doubt have a natural lifecycle, with brands leaving the market, but also new, dynamic names with innovative ideas and approaches coming in, which will keep competition healthy. 

Also, as we’ve touched on previously, Ontario (and indeed Canada) has a very unique audience and set of betting preferences. I’m very interested to see how the regulated market evolves over time as betting habits and choices of sports develop.

Where else is there in Canada that could compete with Ontario should the opportunity present itself?

JPR: If we take a step back and look at demographics, the short answer would be no. Roughly 60% of Canada’s population is Ontario, so it would be very difficult to compete with in terms of size of the audience.

British Columbia perhaps could, but it’s only a third of the size when it comes to population, Quebec also is a national lottery, which makes it an unlikely candidate for innovation given the lack of competition. Alberta’s the last, but again, even if you added the three provinces together by way of population, that’s only 40% in total compared to Ontario’s 60%. That’s not to say we wouldn’t take the opportunity if it presented itself. For now, though, we’re very happy with calling Ontario our new home in Canada and taking it from there.

NA: With Ontario being the biggest province in terms of gaming in Canada, it presents a fantastic opportunity for other provinces in the country to see the positive impact that online gaming and betting have had. The opportunities across the country are plentiful and it wouldn’t surprise me to see others look to follow suit.

AB: According to VIXIO Gambling Compliance forecasts, Canada’s online gambling industry may reach $5.8 billion by 2026 with just minor online sports betting liberalisation in Alberta, British Columbia, Manitoba, and Saskatchewan.

If I would have to bet, Alberta might be the next province to adopt some form of the competitive model, having already issued a solicitation for proposals to pick two commercial operators to compete with its PlayAlberta’s offering.

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