Ontario Sports Gaming Report Forecasts $777 Million Revenue
The online Ontario sports betting and gaming market could generate total gross revenue of $777 million (C$989 million) in its first year, according to the latest forecast by gambling compliance company VIXIO.
Its latest report predicts the Ontario market will grow to $1.46 billion (C$1.86 billion) by 2026, which would make it one of the largest online gambling markets in North America alongside Pennsylvania, New Jersey and Michigan.
The report — titled Canada: Opportunities In Online Gambling & Sports Betting — assumes a late 2021 or early 2022 market launch, a full product range, and a competitive effective tax rate in the region of 20%.
Single-game Canadian sports betting was legalized by the passage of Bill C-218, the Safe And Regulated Sports Betting Act. But the bill has left the decision over how, where and when to permit single-event sports betting up to the individual Canadian provinces.
Once launched, it is expected that regulations will vary province-to-province in a similar way to how each state in the USA operates sports betting within its boundaries. For example, it is likely that regulations in Ontario will differ from Alberta sports betting regulations or Quebec sports betting regulations.
Ontario Taking The Lead In Canada
The Ontario government is pushing forward with a plan to establish a new agency to operate internet gambling through partnerships with various private operators. Ontario, the most populous Canadian province and home to nearly 15 million people, has signaled there will be no cap on the number of operators that may compete for access, with no requirement to partner with an incumbent land-based gaming entity.
Sportsbooks that are already well established in the USA - including FanDuel and DraftKings - are expected to make major pushes into Canada, and bettors should soon be able to wager using sports betting apps.
Away from Ontario, it remains to be seen how quickly, if at all, other provinces follow Ontario’s lead in implementing a similar sports betting model using private operators. Currently, provincial lottery corporations control the sports betting operations in Canada, and bettors are only able to place parlay bets. Depending on the province, this is called the Pro-Line or Sports Select.
In the near-term, the passage of Bill C-218 will enable these lottery corporations to implement their own online sportsbooks offering single-game betting. The VIXIO report expects British Columbia sports betting and Manitoba sports betting, as well as Alberta, to come online in the near future, and to be offered through new lottery-run online sportsbooks.