Ontarians wagering far more on legal online casino games than on sports betting

Ontarians' total wagers on online casino games standfar higher than what's spent on sports-related betting, according to newly released figures from iGaming Ontario (iGO),providinga first glimpse into how these two segments compare.

The province launched a regulated online gaming market last year, allowing licensed operators to provide services including casino games, sports betting and poker services.

Datareleased this week by iGO a subsidiary of the Alcohol and Gaming Commission of Ontario that manages the regulated marketindicates thatOntarians placed$14 billion in total wagers in the recent April-Junequarter.

These included:

• $11.6 billion in casino-related wagers, which iGO said include slots, live and computer-based table games, as well as peer-to-peer bingo.
• $2 billion in betting on sports, esports, as well as proposition and novelty bets.
• $350 million in peer-to-peer poker games.

Together, these wagersgenerated $545 million in gaming revenues. By comparison, the market generated $162 million in these revenues during the equivalent quarter last yearits first in operation.

The newly releasediGO data did not provide a breakdown of where the revenues went. But iGOtold CBC News that the Ontario government received a roughly $260-million share of gaming revenues during the first full year of the market.

This sharp growthis a boon for government revenues and private-market operators, but could mean trouble in the form of problem gambling; Ontariohad more than 900,000 active player accounts inits most recent three quarters.

"There is increasing probability of gambling addiction and harm from the numbers," Michael Naraine, an associate professor in the sport management department at Brock University, said via email.

Nigel Turner,a scientist at the Toronto-based Centre for Addiction and Mental Health (CAMH), who studies behavioural addictions, including gambling, said the growth iGO is reporting isquite startling even thoughvarious online gambling products have very been heavily promoted since thelaunch of the regulated market.

"We've been really inundated with sports-betting advertising," said Turner."We've also been inundated with online-casino advertising."

He agrees that if more people are gambling, it would be expected that more people will have gambling problems.

'A national leader': province

The Ontariogovernment is touting the success of the market so far, but also points to resources it has put in place to protect consumers and provide support for problem gambling.

"As the results show, we are a national leader through our online gaming market," Andrew Kennedy, a spokesperson for the provincial attorney general, saidin an emailed statement.

Kennedy said the province provides $31 million in annual funding for problem gambling;$25 million goes toward treatment programs, while $6 million is earmarked for education and prevention efforts.

Turner said it's important for people to know there are ways to get help. The CAMH website explains how anyone affected by problem gambling in Ontario including family members can do so.

IGaming Ontario, meanwhile, told CBC News via email that it "continues to be pleased with the performance" of the province's online gamingmarket, noting it has grown to include more than 40 operators.

In an email, William Woodhams, CEO of Fitzdares, a British bookmaker that operates in Ontario, said the iGO numbers reflect the industry's view that the province has developed a healthy and mature market.

"Other provinces and global markets are now looking to Ontario as a benchmark for a healthy market," said Woodhams, who had previously pointed to the performance edge that casino products held over sports betting in the province to date.

Peter Czegledy, a partner at Toronto's Aird & Berlis LLP and chair of its gaming group, suspects the Ontario market has room to grow even further "as operators refine their offerings to best suit the market and customer relationships are better established."

He said via email that it would not be surprising to see eventual industry consolidation, acommon progression "in any market that starts off with strong expansion."

Kennedy said the government hopes "to continue to see growth," as the industry further expands.

What the industry expected

The single-eventsports betting segment of Ontario's regulated market has drawn particularscrutiny since its launch including over its advertising, industry tiesto professional athletesand sport integrity concerns.

Sports leagues and broadcasters have been under pressurein Ontario and elsewhereto reduce the high-wattagepromotion of betting-related servicesamid worries overwhat that exposure may mean for young viewers.

Experts have also pointed to potential risks for those of legal age as well,including in the types of gambling products being offered to Ontarians.

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Yet Czegledy said the gap between the activity in casino games and sports-related products in Ontario has been in line with what the industry expected, despite the media focus on thebetting side.

"The differences in segment performance have followed expected form," Czegledysaid.

The newly releasediGO data also provides a breakdown of the gaming segments over the first year of the regulated market.

From April 4, 2022, throughthe end of March 2023, iGOsaid the regulated market saw $35.6 billion in total wagers.

Nearly $28 billion of that was spent on casino games and peer-to-peer bingo.That was roughly four times higher than the $7 billion spent on betting, which included sports and esports wagers. Peer-to-peer poker wagers totalled $992 million for the year.

These combined gambling activities generated $1.4 billion in gaming revenues, the iGO reported, with $940 million of that coming from the casino segment and $433 million from betting. Poker accounted for the remainder.

'24/7' access

These newly released numbers only give a sense of how much online gambling is taking place now, as opposed to prior to the launch of a regulated market, saidAndrew Kim, an assistant professor in the psychology department at Toronto Metropolitan University.

Some of the concerns about the shift to a legal market were rooted in how much gambling activity might rise, he said.

On the subject of casino games, he pointed out theyare not restricted to the duration of professional sporting events running on television.

"Online casinos are available to you 24/7," Kim said.

Brock University's Narainesaid sports gambling may have captured the most attention from critics, but he sees it as "a red herring,"as casino games are "the bigger culprit."

Not only are these games accessible around the clock, they can also be played nearly anywhere, he said,and they don't take as much time to participate in as some types of sports betting might.

Naraine said people enjoy playing these games andmay also be seeking to win some cash for use for further gambling.

"Hoping to fund their other sports bets and casino bets, consumers might look for that instant gratification opportunity found in a quick dice roll or spin," he said.