On April 4th, 2022, the Canadian province of Ontario officially authorized online gambling by launching the regulated Ontario iGaming market. Since then, the market has been blooming, providing a major source of entertainment for the masses and generating substantial revenue for the government.

Additionally, the industry has created stable employment opportunities, sustaining over 14,000 jobs in just its second year and generating more than $1.2 billion in revenue. Stay tuned as we take an in-depth look into the latest updates in this thriving sector.

Ontario iGaming Market: A Job Creator

The iGaming market of Ontario has gone beyond the local level. Attorney General Doug Downey highlighted that it has gained international recognition. In his words, “Our made-in-Ontario iGaming sector is being recognized internationally for its success as a leader in this space. Working together with our partners and industry, we will continue to drive innovation and deliver robust player protections, all while displacing the unregulated market.”

He further emphasized, “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.”

This international recognition consistently attracts smart foreign investors who see it as a good opportunity to expand their reach into Ontario.

While businesses investing directly into a sector may be a primary source of job creation, secondary businesses that grow the industry are just as important. A prime example of this can be seen in the reviewing and ratings industry that has grown around online gaming.

These sites have become an important part of the iGaming ecosystem, providing a crucial entry point for new players (helping continue growth and job creation).

These sites are especially useful for users seeking specific requirements. This can be seen in an article from CasinoTopsOnline (https://www.casinotopsonline.com/en-ca/online-casinos/real-money), which allows players to find platforms based on preferred payment types. The information contained in the article isn’t trivial and would have required a significant amount of research.

So outside being an important part of the ecosystem, these sites create jobs for writers, industry experts, site managers, and countless other niche positions.

Another notable aspect of the Ontario iGaming market is its emphasis on responsible gambling. The Government is not carried away by the numbers; it is also concerned about the welfare of its residents. This includes constantly emphasizing and monitoring them to ensure that they gamble with caution.

Further Emphasis on Responsible Gambling

The iGaming body in Ontario imposes certain responsible gambling responsibilities on operators, ensuring that they keep compulsive habits in check. Here is a quick overview of some of the boxes they must tick

• Obtain and continually maintain gambling accreditation with the Responsible Gambling Council (RCG). This is done through the RG Check program, which regulates the accepted standards of responsible gambling practices.
• Spontaneously balance promotional marketing and responsible gambling advertisements. They achieve this balance through problem gambling prevention and responsible gambling campaigns. So, while promoting their services on one hand, they encourage responsible practices on the other hand.
• Have a functional and centralized self-exclusion program through a trusted network. That way, players who are on the list can’t gamble on any regulated Ontario Internet gambling site.
• In addition, operators should share anonymous players’ data for responsible gambling research. This is to advance the research into compulsive Internet gaming habits and how to help those who are unable to keep it regulated.

These guidelines are clearly pointed out in the Registrar’s Standards for Internet Gaming set by the Alcohol and Gaming Commission of Ontario (AGCO)—Ontario’s sole gambling regulator.

Economic Contributions: Beyond the Job Numbers

Besides sustaining over 14,000 jobs, the Government is making very substantial revenue from the iGaming market boom in Ontario. In the second year, the market generated more than $1.2 billion in revenue. Here’s a breakdown from the market reports

• $75 million—municipal government revenues.
• $380 million—federal government revenue.
• $790 million—provincial government revenue.

Ontario iGaming Board Chair, Heidi Reinhart, further highlighted, “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.”

So, without a doubt, the iGaming market is now a major source of revenue for the Government. And what is most impressive about it is that we witnessed this immense growth in just two years.

Market Growth and Innovation

With these numbers, one thing is certain, the market is yet to peak. Martha Otton, iGaming Ontario’s Executive Director, highlighted that “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,”

Since the Government has seen the industry’s prospects, it is beginning to invest in it and facilitate its activities in the online space.

Now, here is something not many people know; prior to the legalization of online gambling in Ontario, the Government made certain yearly projections. These projections cut across government revenues, direct jobs sustained, total full-time jobs sustained, and even GDP contributions.

They did the analysis in percentages on a yearly basis, and as it stands, we are almost at year five projections in just year two.

Here is a breakdown of the present percentages

• Government revenues—94%.
• Direct jobs sustained—120%.
• Total full-time jobs sustained—92%.
• GDP contributions—93%.

These numbers have surpassed all expectations by far, and they will be even greater as we move on.

Contributions to Ontario’s GDP

So, in all this, how has the regulated iGaming market contributed to Ontario’s GDP? Good or bad? Well, if there was a better word to qualify it beyond good, we’d have used it.

In year one, the Ontario iGaming market contributed $1.58 billion to the province’s GDP. Whoever learns about that is always shocked to then hear that the second year contributed $2.7 billion.

These numbers are astonishing, and very few industries are capable of giving such results in a short time, especially with a strong potential for more upside.

In the first year of the regulated market, for every dollar spent by iGaming operators, it supported $1.14 of Ontario’s GDP. For year two, it went up to $1.40 for every dollar. This shows an obvious multiplier effect that iGaming operations have on the economy.

Employment Structure and Economic Contribution

For the most part, the job numbers come from the full-time equivalent (FTE) positions. It is counted according to their respective duration at work.

For instance, three part-time employees will add up to one FTE if their work duration on the job is equal to what one full-time employee will remit in a year. Through this estimation, the report is more accurate and precise, giving a real reflection of the numbers.

In the report, we have direct, indirect, and induced jobs. Here is a breakdown of the job types

• Direct —jobs that come from Ontario’s regulated iGaming operators.
• Indirect—jobs that source from suppliers as opposed to the operators.
• Induced—jobs that depend on the spending of salaries and wages of employees of iGaming operators and, by extension, employees of their suppliers.

The direct and indirect jobs are the major contributors as they add up to almost 80% of the total job figures. Induced jobs contribute as the least accurate, and due to that, they contribute to a smaller portion of the total.

Challenges and Opportunities Going Forward

Even with its astonishing growth, the Ontario iGaming market has had smooth sailing all along. It has faced opposition from a certain fraction of the masses who are against the gambling market. This has been the case since the Supreme Court ruled that sports betting could still be a possibility. They supposedly quote the compulsive habits that gamblers may exhibit if they gamble too often.

However, the Government has been able to combat the naysayers by actively imposing and monitoring that operators follow the outlined iGaming practices. The Alcohol and Gaming Commission of Ontario (AGCO) has been pivotal in ensuring that they follow through with this.

Then, going forward, there is still so much space for growth in the industry. With the introduction of newer technologies like AR and VR in the gambling space, we are bound to see mouth-dropping numbers in year three and beyond.

Ontario iGaming Market: A Catalyst for Economic Growth and Responsible Innovation

The iGaming market of Ontario has quickly become a major contributor to the province’s economy, generating substantial revenue, creating jobs, and gaining international recognition.

Its commitment to responsible gambling and innovation positions it for continued growth, ensuring a prosperous future for both the industry and the community at large.