The International Betting Integrity Association (IBIA) released a new study last week that took a deep look at regulated sports betting in markets around the world. Part of that included a closer view of the regulated sports betting market in Ontario.
The study, which was conducted by H2 Gambling Capital, looked at 12 legal jurisdictions including the Canadian Gaming Association, the Brazilian Institute of Responsible Gaming, the Netherlands Online Gambling Association, and Responsible Wagering Australia. Ontario stood out for the province’s efforts at bringing bettors into the legal market.
“Canada is a useful case study where Ontario broke away from the monopoly model in operation across Canada and introduced an online sports betting licensing system that has been operational since April 2022,” the study notes. “As a result, Ontario’s onshore sports betting channelization is expected to reach 92% in 2024. In contrast, the rest of Canada combined is forecast to have an onshore rate of around 11% and is expected to lose $2 billion in taxable sports betting GGR (gross gaming revenue) offshore during 2024-28.”
Success Luring Bettors Into the Legal Market
Bringing more of that revenue home to Ontario was a major goal for the province when the regulated market launched. Now other provinces are considering similar moves after Ontario became one of the most successful iGaming launches in North America.
Along with producing a robust market, the study also noted that allowing operators a wide range of sports betting options as well as other aspects also help jurisdictions create successful markets.
“The establishment of a successful market is also linked to the types of sports betting products that operators are permitted to offer (which is considered throughout this report), and wider issues such as taxation, licensing costs, advertising, bonuses and the availability of other forms of gambling,” the study notes.
The study made note that Ontario is in the “minimal restrictions” category despite bans on promoting bonuses and some restrictions on advertising. The report also outlined how the province has moved players away from offshore, unregulated markets.
For example, offshore sports wagering revenue reached $177 million in 2021, but was expected to shrink to $27 million by 2028. On the flip side, gambling revenue in the onshore sports betting regulated market reached $249.6 million in 2022 and was estimated at $454.3 million in 2023. By 2028, that is expected to reach $891.5 million.
This change in betting habits looks to be a win for government coffers. The amount of tax revenue lost is estimated to fall from $26 million in 2020 to just $5.4 million in 2028.
As a whole, the regulated global sports betting market is estimated to be $94 billion in 2024 with $61 billion coming from online wagers. That’s expected to reach $132 billion by 2028 with $93 billion wagered via online platforms.
