Ontario’s iGaming Market: A Strong Q2 Performance Signals Maturity and Growth
Introduction: A Snapshot of Success
As of October 26, 2024, Ontario’s online gambling sector is flourishing, underscoring its evolution from a nascent industry to a mature market. Recent financial disclosures, as highlighted by Paul Burns, the President and CEO of the Canadian Gaming Association (CGA), confirm that Ontario’s iGaming landscape has not only matured but has also demonstrated remarkable growth in the last quarter. On Thursday, iGaming Ontario released its latest performance report, showcasing robust numbers that warrant a closer look.
Financial Highlights: Q2 FY 2024-25 Performance
According to the iGaming Ontario market performance report for Q2 FY 2024-25, Ontario recorded a total of $18.7 billion in wagers, marking a 1.6% increase from the previous quarter and a striking 31.7% growth compared to Q2 of the previous fiscal year. The overall gaming revenue for the quarter reached $738 million, reflecting a 1.7% uptick compared to Q1 and an impressive 35.4% rise year-over-year. These figures point to a booming market that is not merely surviving but thriving.
Image/iGaming Ontario chart
Market Maturity: Insights from Industry Leaders
Burns emphasized the significance of these results, noting that “operators have hit their stride, advertising is leveling off,” and confirmed that the Alcohol and Gaming Commission of Ontario (AGCO) and iGaming Ontario (iGO) continue to welcome new operators to the marketplace. This influx of operators is essential for maintaining a competitive environment, particularly following the exit of certain less successful companies.
Burns reiterated that these figures now represent a “mature market”, indicating that the reality of Ontario’s iGaming sector is increasingly reflecting long-term stability and sustainability for both the province and the industry.
The Numbers Behind the Success
The report monitored activities from July 1 to September 30, 2024. Following the trend of increased revenues, the number of active player accounts in Q2 fell to 1.32 million, down from 1.9 million in the previous quarter. However, interestingly, the average monthly spending per active account rose to $308, compared to $284 in Q1.
In Q2, a total of 51 operators and 83 licensed gaming websites were active, bolstering a competitive landscape. This robust ecosystem has ultimately contributed to the positive financial performance, illustrating the appeal of Ontario’s iGaming market.
Casino Gaming: A Powerhouse in Wagers and Revenue
The dominance of casino games within Ontario’s iGaming sector is unmistakable. In Q2, casino-related gaming (which includes slots, live and computer-based table games, and peer-to-peer bingo) accounted for an impressive 86% of total wagers—or $16 billion—and made up 75% of gaming revenue at $553 million. Sports betting, esports, and novelty bets contributed 12% of total wagers ($2.2 billion) and 23% of the gaming revenue ($167 million). Peer-to-peer poker represented a smaller share, with 2.2% of total wagers ($417 million) and 2.4% of revenue ($18 million).
The Wider Market Context: Alberta Looks to Ontario
As Ontario continues to solidify its position as a leader in the online gambling market, neighboring provinces are taking notes. Alberta is presently working on launching an iGaming regulatory framework similar to Ontario’s, aiming for a rollout in 2025. This move highlights Ontario’s influence in shaping the future of online gaming in Canada.
Conclusion: A Bright Future Ahead
With continuous growth and an expanding player base, Ontario’s iGaming market is poised for sustained success. As operators normalize their practices and customer engagement strategies mature, the outlook appears incredibly promising. The latest performance report not only delineates a thriving industry but also sets the stage for ongoing innovation and regulatory development in the months and years to come. The resilience and adaptability demonstrated by operators hint at a bright future for both the province and its burgeoning online gaming sector.
