A slow start for sports betting

Ontario’s new online gambling regulator released its first earnings report since the province opened the floodgates to its regulated sports betting market. 

What happened: In its first three months, iGaming Ontario (IGO) saw bets totalling over $4 billion, resulting in $162 million of revenue split between operators, sites, and the province. 

Yes, but: $4 billion sounds like a lot, but it fell short of expectations given the size of Ontario’s market, a director at Canada Sports Betting told the Financial Post.

  • That places IGO well behind the $989 million first-year revenue projection from industry analyst VIXIO GamblingCompliance. 

Continued use of foreign-operated and unregulated gambling sites (called the ‘grey market’) is the likely cause for complaint since there is still confusion over who is licensed by IGO. 

  • Several popular sites, including Betway and Jackpot City, weren’t licensed operators until very recently, while others, like Pinnacle, remain unlicensed. 

Why it matters: As other provinces follow Ontario’s lead to develop their own structures to regulate gambling, the province’s experience will serve as a helpful case study. 

Big picture: Sports betting alone could bring over 2,600 new full-time jobs to Canada and boost GDP by $425 million, so provinces have a huge opportunity on their hands.