Starting on April 4, 2022, the Ontario gambling market will undergo significant changes, with the online gambling and single-sports betting markets expanding and becoming available to a wider range of operators. From next month, the province will run the iGaming scheme, an online gambling market designed to expand the industry in Ontario.
Whilst single-sports betting has not been illegal in Ontario for some time, consumer choice was limited to PROLINE+, an operator run by the Ontario Lottery and Gaming Corporation (OLG). This change effectively means that more online operators will be allowed to offer their services to consumers.
Ontario is a Gambling Trailblazer
Experts will be watching closely following iGaming’s launch, as Ontario is the first province in Canada to create a regulated gambling market for online betting. Analysts believe that this expansion may create North America’s largest gaming market, which may pave the way for similar initiatives in both Canada and the United States.
The last few months point to an increased interest in Ontario’s gambling industry, with companies making significant moves. Apollo Global Management, for instance, recently completed the acquisition of Great Canadian Gaming Corporation through an affiliate.
Further, NorthStar Gaming and Playtech announced a strategic partnership, opening up one of the leading software development agencies to the Canadian market. Penn National Gaming and PointsBet Canada have also enlarged their operations in Ontario, all of which point to an exciting new chapter for the industry in the province.
Good News for Consumers
These developments can only be regarded as positive for players, driving competition, improved products and offers, and consumer choice. Popular titles like the Mega Moolah slot game are just one of the many exciting games that Ontario residents can look forward to after launch.
The provincial government is not only looking to increase options for consumers, but also to ensure that players are protected. The newly regulated market will have rigorous safeguards in place, only allowing companies to operate as long as they meet government guidelines. This ensures that Ontarians can enjoy games and place wagers safely, without worrying about their deposits.
Removing Gray Areas
This move reflects overall changes to gambling regulations by the Canadian government. Last summer, authorities passed a bill that legalized single-game betting. Experts believe this is just the beginning of a wider trend to remove restrictions and extend the market.
The launch of iGaming will remove gray areas for consumers. Prior to the switch, Ontario residents are able to circumvent regulations by using certain overseas sites. Bet365, for example, was a popular choice for many players. While not illegal, the law was nevertheless not entirely clear.
From next month, however, consumers will be able to place bets within a regulated market, with a list of approved operators already released. Household names such as theScore, 888, and Unibet, amongst others, are some of the companies' projects to be given the government’s stamp of approval.
The list is expected to expand quickly, with Caesars, Betway, and DraftKings Ontario all expected to join the fold in the coming months. The full list has not yet been released, but it will be available on Ontario’s iGaming website from April 4, 2022.
Pushback from Traditional Operators
Of course, iGaming’s launch was not met with enthusiasm by all parties. Land-based operators and First Nations communities, for example, have voiced concerns about the online market’s impact on local businesses.
Chief Kelly LaRocca, of the Mississaugas of Scugog Island First Nation, is pushing the province to ‘press pause’ on iGaming’s launch. He stresses that communities were not consulted, and also believes they may suffer as a result of the expansion of online gambling.
The concern is also shared by the CEO of Great Canadian Gaming, Tony Rodio. He cites the fact online casinos will only have to pay 20% tax, whilst brick and mortar businesses pay over 50%. He believes the introduction of iGaming will lead to local job losses, particularly as many online operators are based overseas.
What Does it Mean for the Industry Long-term?
The launch of iGaming is expected to have a significant positive financial impact on the industry in Ontario, with the effects reverberating through the rest of the country. Deloitte Canada, for instance, has released a report that estimates that the single-event sports betting industry has the potential to grow up to $28 billion within the next five years.
Considering most Ontarians currently use overseas options, rather than the limited PROLINE+, it is expected that tax revenues will increase exponentially. According to Martha Otton, an iGaming executive, expanding the regulatory scope and inviting additional third-party operators will serve to help fund government programs and services.
Before launch, however, these remain mere predictions. Considering it is the first scheme of its kind, the success or otherwise of iGaming is likely to have a significant effect on the shaping of the industry in the coming years.