In April 2022, Ontario opened its doors to online gaming and sports betting, marking the beginning of a new era for iGaming in the province. Two years later, the market has seen remarkable growth and development, positioning Ontario as a key player in the global iGaming industry.
Impressive Growth Figures
Data from iGaming Ontario's (iGO) FY 2023-24 Full Year Market Performance Report reveals a significant surge in total wagers, reaching CA$63bn total wagers, a 78% increase on 22-23. The province has also seen a significant increase in total gaming revenue with the 2023-24 ending at $2.4 billion, a 72% increase over 2022-23. There are also now over 47 operator licenses and 72 gaming websites offering an array of verticals, from casino, live casino and sports betting.
With these growing numbers, it’s safe to say that Ontario has proven itself to be one of the most lucrative iGaming markets in North America, offering huge opportunity for operators to capitalise on and the perfect testbed for other North American jurisdictions looking to replicate the model.
Key Learnings for Operators
As we move into Q2 of 2024 and beyond, operators in Ontario should take several key learnings from the continued success of the region into consideration.
1. Adaptability to Evolving Consumer Demands
The iGaming landscape is constantly evolving, with player preferences and behaviours changing rapidly. Operators must remain agile and responsive to these changes, continually innovating their offerings to meet the evolving needs of players. Trends to stay ahead include gamification, personalised experiences, and social gaming.
For example, mkodo recently worked with OLG and Bede to introduce a new Group Play feature which allows players to create private groups to buy lottery tickets together, increasing their chances of winning a prize. New features like this increase player engagement and retention, differentiating OLG from its competitors.
2. Compliance with Regulatory Requirements
With a robust regulatory framework in place, operators must ensure strict compliance with all regulations. The Alcohol and Gaming Commission of Ontario (AGCO) recently released guidance to support operators with the implementation of the revised standards for iGaming in the region.
These standards include various aspects, such as age verification, location monitoring, and responsible gaming measures. The aim is to enhance player protection, promote responsible gambling behaviours, and ensure the integrity of Ontario's iGaming ecosystem. In order to remain fully compliant operators need to invest in robust geolocation verification technology solutions, like GeoLocs. This technology ensures precise verification of player locations, promoting responsible gambling and maintaining regulatory compliance.
By embracing advanced compliance measures, operators can safeguard the integrity of the iGaming ecosystem while providing a secure gaming environment for all players.
3. Responsible Gaming & Data Security
Responsible gaming practices are important in ensuring the long-term sustainability of the iGaming industry. Operators must prioritise player safety and well-being by implementing effective responsible gaming measures and promoting healthy gambling behaviours among their players. Incorporating responsible gaming tools such as self-exclusion and spending limits into platforms will foster a safe and enjoyable gaming environment.
Safeguarding player data should also be a focus for operators across Ontario. A recent report by Norton found that over 85% of adults globally want to do more to protect their online privacy. Measures such as strict access controls, regular data backups, and working with suppliers that prioritise data security should be implemented to ensure the security of player data and protect against potential breaches.
4. Strategic Decision-Making Based on Data
Data-driven decision-making is crucial for success in the iGaming industry. By leveraging insights from reports such as iGaming Ontario's market performance report, operators can make informed decisions and tailor their strategies to capitalise on emerging trends and opportunities. Operators can leverage data analytics tools to gain valuable insights into player behaviour and preferences, allowing them to optimise their offerings and enhance player engagement.
Leveraging geolocation providers such as GeoLocs can significantly enhance operators' data capabilities. The GeoLocs platform offers a robust reporting tool that provides detailed insights into player locations and activity patterns. By integrating GeoLocs into their operations, operators gain access to real-time data on player demographics, preferences, and engagement levels across different regions in Ontario. This granular level of insight allows operators to tailor their marketing campaigns, promotional offers, and game selections to specific target audiences, maximising their effectiveness and ROI.
By leveraging data effectively and securely, operators can navigate the dynamic landscape of the Ontario online gambling market with precision and agility.
5. Investment in Innovation and Technology
In a rapidly evolving industry, operators must prioritise investment in innovation and technology to stay competitive. Whether it's implementing cutting-edge gaming technologies, enhancing user experience through mobile optimisation, or exploring new payment methods, operators must continually innovate to meet the evolving expectations of players.
Gitnux 2024 market report reveals that approximately 85% of all online gamblers use their mobile devices, meaning that operators across the region should aim for a mobile-first approach to their offering. Digital wallets are a great example of this. mkodo recently worked with a Canadian-based operator to introduce digital wallets. This update to their app saw an increase of player accounts from 10,000 to 100,000. A great example of investing and embracing technology to increase player engagement and retention.
Looking Ahead
Stuart Godfree, Managing Director at mkodo said of the future of iGaming in Ontario: “As Ontario's iGaming market continues to mature, the future of iGaming in the region is certainly very promising, with further advancements expected in live sports betting and an increased emphasis on responsible gaming initiatives. In order to stay ahead and remain competitive, operators must continue to innovate and collaborate to ensure a sustainable and thriving iGaming ecosystem in Ontario.”
Over the past two years, the online sports book and gaming industry in Ontario has witnessed remarkable growth and transformation, establishing the province as one of the largest online gambling markets in North America. By embracing trends and remaining adaptable to the evolving landscape, operators can ensure a sustainable and thriving iGaming ecosystem in Ontario for years to come.