Ontario’s Single-Game Sports Betting Industry Sees 70% Growth
Ontario’s Single-Game Sports Betting Industry Flourishes Ontario’s single-game sports betting industry is thriving, contributing $2.7 billion to the province’s gross domestic product (GDP) in 2023. This marks a significant 70% increase from $1.58 billion in 2022, its first year of operation. Ontario remains the only Canadian province with an open, regulated igaming market, having fully opened on April 4, 2022. A report by Deloitte, covering from April 4, 2022, to April 3, 2023, highlighted the broader economic benefits to the province. According to iGaming Ontario (iGO) executive director Martha Otton, the report emphasizes the positive impacts on all three levels of government. The Ontario single-game sports betting industry’s second year saw 47 operators and 77 gaming sites, slightly up from the previous year. For every dollar spent by igaming operations, an estimated $1.40 of GDP was supported in Ontario’s economy, up from $1.14 in the first year. The Ontario single-game sports betting industry also sustained 14,935 jobs, a 24% increase from the previous year, with operators directly employing approximately 2,675 people at an average compensation of $122,500 per person, 60% higher than the provincial average. The industry’s contribution to labor increased by 45% to $1.31 billion from $905 million. The total government revenue generated via the Ontario single-game sports betting industry surpassed $1.24 billion, with $790 million for Ontario, $380 million for the federal government, and $75 million for municipal governments. The contributions to provincial and municipal government revenue in Ontario increased by 66% from $525 million to $865 million. Many of Deloitte’s fifth-year projections for the Ontario single-game sports betting industry have already been met or nearly reached, including government revenues (94%), direct jobs sustained (120%), total full-time jobs sustained (92%), and GDP projections (93%). While Otton anticipates a potential leveling off in growth, the Ontario single-game sports betting industry remains attractive and promising. Push for National Advertising Regulation in Sports Betting Meanwhile, a Senate bill aimed at regulating sports betting advertisements is making its way through the Canadian legislative process. Bill S-269, introduced by Senator Marty Deacon, seeks to establish a national framework for limiting advertising and preventing problem gambling. Despite passing the second reading in the Senate, the bill has not yet reached the House of Commons and faces a tight timeline with the next election on the horizon. Since the legalization of single-event sports betting in 2021, there has been a surge in gambling-related advertising. A CBC investigation found that gambling messages filled up to 21% of each broadcast, prompting Deacon to act. Concerns have been raised about the impact of these ads on youth and those prone to gambling addiction. Ontario, the only province with a regulated market, has already implemented advertising restrictions. Initially, celebrities and athletes, including Wayne Gretzky and Connor McDavid, appeared in gambling ads, but these were later banned due to the potential risk to underage individuals. However, exceptions remain, such as McDavid’s appearances in responsible gambling ads, which Deacon criticizes as significant loopholes. The bill must pass through the Senate and reach the House by Christmas to stand a chance of being enacted before the next election. It has garnered general support across various political parties. The governing Liberals are particularly focused on addressing the financial, mental health, and addiction impacts of online gambling advertising, especially on young people. Summary Ontario’s sports betting industry is experiencing rapid growth, significantly boosting the province’s economy. Concurrently, there is a legislative push to regulate sports betting advertisements nationally to mitigate the associated risks, particularly to vulnerable populations. The outcome of this legislative effort remains uncertain with the upcoming election, but it has sparked necessary discussions on balancing industry growth with responsible gaming practices. To learn more about gaming licenses in Canada or anywhere else in the world, call our team! Talk to our consultants and discover the best advantages of investing in the gaming industry. Font: IGB
