Over the past five years, Ontario has made significant regulatory shifts in its gambling industry by opening up a regulated online gaming (iGaming) marketplace. The move was the first of its kind in North America and has become a case study for regulators across the continent.
From the development of the province’s regulations and its delivery of regulated online casinos and sportsbooks to its consumer and market impact, this article will explore how Ontario became an iGaming leader.
From Caution to Innovation: Ontario’s Path to iGaming Reform
In 2021, it was estimated that Ontarians spent nearly $1 billion on online gambling, the majority of this on unregulated, offshore sites. At the time, online gambling was a legal grey area—not prohibited, but also not formally permitted—leading many Ontarians to gamble at these sites without knowing they were unregulated. While these platforms provided entertainment, they raised serious concerns for Ontarians and Ontario policymakers.
These unregulated sites weren’t held to a uniform standard and lacked player protections. There was no way to enforce standards like fair play or ensure players could access resources such as:
- Self-exclusion tools
- Problem gambling support
- Secure and transparent financial protections
This put Ontarians’ health and financial well-being at unnecessary risk. It also posed concerns about money laundering and other fraudulent activities. The concerns surrounding this activity unquestionably needed to be addressed.
Recognizing this need led to the Ontario government developing a solution through the Alcohol and Gaming Commission of Ontario (AGCO). The result was the launch of an iGaming regulator to operate under the AGCO, called iGaming Ontario (iGO).
Through iGO, private gambling operators can apply for licenses to operate within Ontario. These licenses require operators to meet and maintain strict requirements to protect players while also setting the province up for a competitive marketplace and increased gaming revenue. For Ontarians, it also means there’s a wealth of gaming options that are regulated with consumer protections and problem gambling policies in place to protect them.
Key Principles Behind the Model: Safety, Transparency, Access
On April 4, 2022, iGaming Ontario launched, making online gambling available to people across the province. iGO developed regulations and policies that centre around the concepts of safety, transparency, and access, to support its mission: “to conduct and manage Ontario’s safe, efficient, and legal world-class iGaming market.” In practice, these policies look like independent audits, responsible gaming practices, and consumer complaint pathways. These hold iGO itself as well as its licensed operators to high standards.
Independent Audits
The iGO’s financial performance is tracked by external auditors who can examine metrics like revenue and player betting statistics in an impartial manner. This allows for transparent and unbiased information to be provided to regulators and the public, ensuring iGO is maintaining its standards. Through an external audit, concerns relating to fraud or not meeting regulatory requirements can be identified and dealt with promptly.
Responsible Gaming Practices
While iGO is held accountable by external auditors, it holds operators accountable to standards that protect players, including the implementation of:
- Fair gaming standards – all operator games must use random number generators (RNG) and be tested by independent third parties.
- Know your customer (KYC) policies – all operators must verify player identities to prevent underage gambling and fraudulent activities.
- Responsible gambling tools – all operators must make tools such as deposit limits, session timers, and self-exclusion options easily available to players.
Additionally, iGO requires operators to have strict data collection and use policies to protect player information.
Consumer Complaint Pathways
When problems or concerns arise with operators that haven’t been satisfactorily resolved, players can easily contact iGO through their Player Support page to have the issue investigated and dealt with. This gives players reassurance that if issues arise, they have options, and it’s another way to hold operators accountable for meeting regulations through their policies and procedures.
As a result of these qualities, iGO has become a standout gaming model that prioritizes strict oversight while enabling a fair and competitive marketplace where new businesses can succeed.
The Growth of Legal Sports Betting and Online Casinos
Source: Freepik
iGO’s regulated marketplace has thrived since its rollout. In the 2023-24 fiscal year, it generated $63 billion in wagers and $2.2 billion in gaming revenue. The market has rapidly grown, with regulated casinos and sportsbooks leading the way.
The largest segment of iGaming in Ontario is casinos. There are nearly 50 online casino operators and over 5,000 games for players. Casinos, which offer classic casino games like blackjack, poker, and slot games, generated 73% of iGO’s gaming revenue in 2023-24.
These regulated casinos in Ontario have earned player trust with their benefits and security features, giving them more confidence when gaming online. This confidence comes from knowing that the data they share to play games (including their ID and financial details) is protected through privacy policies and that operators are required to meet fair play requirements, reducing concerns about games being “rigged” in favour of the casino. Even player deposits and winnings are protected with iGO, making it not only a safer option but a more appealing one.
Just before the iGO marketplace launched, the federal government amended the Criminal Code of Canada, allowing provinces to regulate single-event sports betting. The amendment enabled iGO to add another significant gaming option for players: sports betting. In 2023-24, betting increased in revenue by 42%. Through the regulated market, players will find a host of options for betting on sports, including esports. Basketball is the most popular option for Ontarians, with 24% of bettors placing wagers on basketball games.
Like casinos, regulated sportsbooks are benefiting from the increased player trust, helping to reduce offshore betting activities. In fact, the regulated market is having a considerable impact on the use of offshore gambling platforms in general: 86% of Ontario online gamblers are using regulated options through iGO.
Why Ontario’s Approach Matters Beyond Gambling
Through the increasing number of users and revenue, iGO is having an immense impact that transcends the gambling industry. Of the revenue generated, $261 million went to the province for funding infrastructure, healthcare, and education systems. In 2023-24, it also generated nearly 15,000 full-time jobs. Though the use of gambling revenue for infrastructure and job creation is by no means unique to Ontario, it’s something many provincial, state, and federal governments around the world benefit from. What’s truly setting iGO apart is its approach to regulation.
A Safer, Legal Alternative to Offshore Markets
iGO is successfully curbing illegal gambling activities, ensuring safer support and gambling options for its 2.1 million players. The success of iGO has made it a model for other provinces and US states looking to regulate online gambling or to strengthen their regulations.
What Makes Ontario’s Model Appealing
iGO’s model is appealing for several reasons. The primary reasons are that it offers an array of options to players and that it has created a competitive marketplace with room for both established and new operators to compete. These factors have shaped an appealing marketplace for players with a huge gaming selection; players are more likely to opt for regulated options than offshore ones if they have a larger variety of gaming options. It’s also appealing to operators, who can benefit from the lucrative and growing market.
Lessons for Other Regulators
Other provinces and states are also learning what not to do with a regulated market. Ontario’s launch of iGO hasn’t been without hiccups. For example, ads prompted public concern and calls for change. Ontario did place more restrictions on advertising within the industry to address this, but it’s a perfect example of what other regulators can implement in development stages to minimize disruptions during the rollout of their markets and policies.
Conclusion
iGO set out to provide a secure and accountable online gambling system, and so far, it’s delivering on this effort. It’s reducing the risk for players who were opting to use unregulated sites, and it’s creating a lucrative marketplace that’s generating jobs and funding provincial projects. By embracing the active use of unregulated iGaming platforms and replacing them with more secure options that are still fun and exciting, iGO has shaped a unique, profitable market and a case study for other regulators. Now we’re just waiting to see who will follow the province’s lead.
