Online gambling

Ontario online gaming revenue tops $267 million in second quarter, up nearly 65%

Ontario players wagered more than $6 billion on sports, casinos and esports in the province’s new legal market in the three months ending September 30, according to the latest figures from iGaming Ontario. (Eric Bolte-USA TODAY Sports)

Ontario’s new legal online betting market grew in its second quarter, earning $267 million in total gaming revenue as more players and websites participated in sports, casino and ports.

The second official release of financial numbers from iGaming Ontario (iGO), a subsidiary of the Alcohol and Gaming Commission of Ontario (AGCO), shows an increase of nearly 65% ​​in overall gaming revenue for the province.

The report, released on Wednesday, covers the period from July 1 to September 30. Figures do not include the Ontario Lottery and Gaming Corporation’s (OLG) government iGaming platform, or free bets or other promotional bets offered by various websites. .

Total bets placed during the quarter were $6.04 billion, up 48% from the $4.08 billion recorded in iGO’s first financial statements released in August. The latest report shows that the market has grown to 24 operators running 42 gaming sites, up from 18 running 31 sites in the previous quarter.

Active player accounts and average monthly spend also increased, according to the report. iGO had 628,000 active accounts, up from 492,000 in the first quarter. Average monthly expenses jumped more than 25%, from $113 to $142.

Following Ottawa’s decision to legalize new forms of betting last summer, including individual games and sporting events, Ontario has distinguished itself from other provinces by allowing private companies to compete with bets managed by the government.

While the latest figures from iGO show the industry gaining momentum, revenues are on track to be well below some early forecasts.

U.S. consulting firm VIXIO GamblingCompliance estimated the Ontario market to be worth around $1.6 billion in gross gambling revenue this year, rising to $2.36 billion in 2023.

Private companies operating in the province took their first bets on April 4. The promise of an open and competitive market in Ontario has drawn a number of industry heavyweights like Boston’s DraftKings (DKNG) to the province. However, restrictions on advertising free bets and other incentives, as well as competitors outside the new legal system, posed headwinds.

“We’ve always said that we don’t think we can achieve the same share that we think we can achieve in the United States,” DraftKings CEO Jason Robins told analysts at a post-earnings conference Aug. 5. call.

A number of private sportsbooks and online betting websites that operated for years outside of Ontario law have joined the legal market, such as industry giant Bet365. In August, Wall Street analysts said Yahoo Finance Canada that firms entrenched in the so-called “grey market” are likely to dominate the early innings of Ontario’s new legal industry by leveraging their experience in Canada’s most populous province.

Earlier this month, AGCO set October 31 as the deadline for the transition of illegal betting platforms to the legal market. The agency says unregulated operators must stop operations by this date to avoid jeopardizing registration eligibility.

Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.

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