Ontario Sees $2 Billion Wagered on Sports in First Quarter of Fiscal Year

Ontario iGaming finally revealed their first quarter numbers, which showed that $2 billion was bet on sports within the province from April 1 through June 30. The revenue from sports betting accounted for 14% of all gambling wagers to kick off the new fiscal year. That puts Ontario on track to surpass its $7 billion total from its first fiscal year (April 1, 2022 - March 31, 2023). 

Ontario sports betting generated $138 million in revenue in the first quarter, accounting for a quarter of the province's gaming revenue. The total gaming revenue was $545 million, far surpassing the $162 million they saw in last year’s opening quarter. While sports have contributed to that jump, the overwhelming majority comes from regulated online casinos.

Online Casino games had a $27.6 billion handle in the quarter, while online poker added another $992 million. With Ontario taxing operators at 20%, they saw a record-high $109 million in tax revenue from online gaming. 

Transition of Grey Market Boosted Gaming Revenue

One big reason for the increase in 2023 has been the transition of the grey-market sportsbooks and casinos. The “grey market” refers to unregulated foreign sites that were allowed to operate in the province. Bettors could legally access those sites but would not have legal recourse if an issue arose.

Ontario ended the grey market on October 31, 2022. The Alcohol and Gaming Commission of Ontario let operators know they would either need to enter the regulated market or exit the province entirely. The transition has taken some time, but many former grey-market operators have become licensed to operate in Ontario. 

The licensing of former grey-market casinos and sportsbooks has brought their users into the regulated market, further growing the online gaming market in the Heartland Province. The new operators have also led to fierce competition, which has benefited players and helped Ontario see record-high handles.