Survey Shows Rising Use of Regulated Online Gambling Markets in Ontario

Two years after Ontario transitioned to an open, regulated online gaming market, a majority of the province's gamblers have migrated to regulated platforms, according to a new study commissioned by the Alcohol and Gaming Commission of Ontario (AGCO) and iGaming Ontario. However, this transition has also allowed game providers to lower the Return to Player (RTP) rates to 85%, raising concerns among players.

The study, conducted by IPSOS, highlights the success of the regulatory changes in reducing the use of underground and unregulated online gaming sites. IPSOS found that 86% of players now use regulated sites.

"This is another pivotal milestone in our ongoing work to provide players and businesses with a strong, competitive, and safer online gaming environment that meets consumer expectations," said Attorney General Doug Downey. "We look forward to iGaming Ontario's continued success as a global innovator, a job creator sustaining over 12,000 jobs in its first year, and a leader in the online gaming space."

Survey Details

The survey revealed that men are more likely to gamble online, with 64.5% of male respondents using regulated iGaming sites in the past three months compared to 35.5% of female respondents. The 35-54 age group had the highest percentage of online gamers at 42.5%, followed by the 19-34 age group at 38.7%, and those over 55 at 18.8%.

Educational background also influenced online gambling participation: 38.1% of individuals with a university degree reported gambling online in the past three months, compared to 31.9% with a high school diploma or less, and 30% with some university education.

• 35.2% gambled online in the past year.
• 29.5% in the past three months.
• 20.3% in the past month.

Impact and Global Standing

The regulatory efforts have not only benefited the province but have also positioned Ontario as one of the largest regulated online gaming markets globally. In November 2023, Vixio, a leading regulatory intelligence firm, reported that Ontario's iGaming market ranked sixth in the world by gross gaming revenue, surpassing markets like Michigan and New York.

Vixio also awarded iGaming Ontario the 2023 Regulatory Initiative of the Year. Ontario gaming officials credited the accolade to the operators that have launched in Ontario and the players who have chosen the regulated market.

"When talking about Ontario's iGaming market, the numbers tell us a lot, but what I'm most proud of are the countless ways that our government partners, operators, responsible gambling experts, players, and employees have worked together to help us create a world-class market that is Ontario-made for Ontarians," said iGaming Ontario Board Chair Heidi Reinhart.

Preferences for Betting

iGaming Ontario also provided insights into gaming preferences over the last fiscal year. The province offers a diverse game catalogue including sports betting, casino games, and poker.

Ontario's online sports betting market ranks in the top five for total wagers in North America. Among the 27 operators offering sports betting, basketball has emerged as the most popular option. There are over 60 other sports markets available, from curling to sumo wrestling.

The casino segment, encompassing slots, live and computer-based table games, and peer-to-peer bingo, remains the largest by wagers, accounting for about 82% of the market in its second year. With 47 operators and over 5,000 certified games, this category offers the broadest range of choices. However, the regulated market has seen a drop in RTP rates to 85%, a move that has drawn criticism from players who feel it diminishes their potential returns.

Our Conclusion

If the survey findings are accurate, it suggests that while the majority of players have shifted to regulated platforms, many might be unaware of the reduced RTP rates. This raises concerns about players being deceived under the guise of a safer and more regulated environment. Although the regulated market offers a broad range of gaming options including sports betting and live casino games, it's important for players to remain vigilant. While sports betting and live gaming experiences may offer genuine engagement, the lowered RTP rates in other gaming segments can lead to significant losses, making them less favourable for players. The promise of a safer, regulated market should not overshadow the need for transparency and fair play in all aspects of online gaming.