Ontario Sports Betting Revenue Sees Slight Decline in Q2
The latest reports from Ontario’s online casino and sports betting markets present a mix of developments. Initially, the booming reviews and revenues set a high bar of expectations. As the province rounds up its first year of regulated iGaming, everyone’s been keen to see if that growth spurt would continue. Although the sector has held its ground in the year’s second quarter, there’s been a noticeable dip in revenue to keep an eye on.
iGaming Ontario, which oversees online casinos and sports betting in the province, has shared that a staggering $14.2 billion was wagered between July and September. This figure is slightly up from the $14 billion staked in the first quarter — that’s the silver lining.
However, the concerning bit for industry players is the decline in revenue, sliding down from $545 million in the first quarter to $540 million in the second. Year-over-year, though, we’re looking at a 132% surge in total bets and a 105% increase in revenue.
The details emerge from data across 46 operators and 71 gaming sites. Notably, these figures don’t factor in operational costs, free promotional bets, and other potential deductions.
Player Engagement Is Up
The number of active player accounts has seen a small uptick — from 920,000 in the first quarter to around 943,000 in the second. Monthly spending per player showed a slight decrease, from $195 in the first quarter to $191 in the second.
Of the entire gaming revenue pie in Ontario, legal sports betting claims 22%. This includes all sorts of bets — from your standard game outcomes to the more niche prop bets and even esports wagers.
The second quarter saw around $1.9 billion in these bets, closely trailing the $2 billion from the previous quarter. However, revenue from sports betting fell by $20 million, marking a decrease that will likely draw regulatory attention.
Online casinos, however, continue to bring in the lion’s share of both wagers and profits, with 84% of bets and 75% of revenue. In contrast, peer-to-peer poker, which had higher expectations, is only contributing 3% to both the betting pool and profits.
Early enthusiasm was high as initial figures from online gaming and sports betting in Ontario rolled in, with revenues and wagers beating expectations. However, the latest data suggests that we might be seeing a plateau in growth. While the wager amounts have remained fairly consistent, the revenue dip might suggest a levelling off, which could influence future regulatory decisions and market strategies.
Poker’s Struggle to Make an Impact
Peer-to-peer poker hasn’t made the splash in the market that many anticipated. Despite online casinos dominating betting activity, poker’s share has remained a modest 3% of total wagers and profits without signs of impending growth. This reality could shape how online poker is marketed and offered alongside other betting services in the future.
Conclusion: The Pulse of Ontario's iGaming Scene
Ontario’s iGaming and sports betting revenues have shown a slight decline in the second quarter of 2023, signalling a potential plateau after an initial surge. Despite this, the industry’s overall stability and growth in player accounts indicate a solid foundation.
Observers and regulators alike will be keen to see how these trends inform future developments in the sector.