Ontario's regulated internet gaming market completed its second full fiscal year in March 2023 with gross gaming revenue of $2.4 billion, a figure that surpassed internal projections established when the competitive model launched in April 2022. The result represents a significant year-over-year increase from the approximately $1.4 billion recorded in the truncated first year, which covered only part of the 2021-22 fiscal period.
The performance figures, disclosed in iGaming Ontario's annual report released in late 2023, mark a pivotal milestone for the province's departure from the historical single-operator model — where the Ontario Lottery and Gaming Corporation held a de facto monopoly on internet-based wagering — toward a competitive marketplace with multiple private operators operating under a government-managed framework.
Revenue Breakdown and Wager Volumes
The $2.4 billion gross gaming revenue figure reflects total player losses across all registered operators and all verticals, including online casino games, sports wagering, and poker. Of that total, iGaming Ontario received its share through a revenue-sharing arrangement with each registered operator, with the funds directed toward the provincial treasury and, in part, toward the Responsible Gambling Ontario program.
Total wager volumes processed across the Ontario market during FY 2022-23 approached $38.4 billion — a figure that encompasses the full value of stakes placed by registered players, not the net revenue earned by operators. This distinction is important when comparing Ontario's performance to peer markets: gross wager volume is a measure of market activity, whereas GGR is the commercial output after player winnings are paid.
The sports wagering vertical contributed a substantial share of both volume and revenue, driven by the legalization of single-event sports betting following the August 2021 Criminal Code amendment. Prior to that change, Ontario and other Canadian jurisdictions could only offer parlay wagering through provincial lottery operators. The opening of single-event sports wagering to licensed private operators fundamentally altered the competitive landscape and accelerated market uptake.
Operator Count and Market Structure
As of the close of FY 2022-23, iGaming Ontario had 47 registered operators active in the market, a number that grew steadily over the two-year period since launch. The operator mix reflects the global nature of the industry: licensees include major international groups operating under British, Maltese, Gibraltar, and Swedish regulatory frameworks, alongside North American-focused entities.
Market share is not evenly distributed. Industry estimates based on publicly available traffic data and operator disclosures suggest that the top five operators by GGR account for a majority of market activity. Bet365 and DraftKings are understood to be among the volume leaders in sports wagering, while PokerStars Ontario (operated by Flutter Entertainment's Canadian subsidiary) holds a significant share of the online poker and casino segments.
The competitive structure creates genuine price and product competition for Ontario consumers — a departure from the previous environment where the OLG's online platform, Proline+, offered limited product selection and relatively unfavourable pricing. Research by consumer advocates and the Responsible Gambling Council has noted that regulated platforms now offer superior player protection tools compared to the grey-market offshore sites that previously captured the bulk of unregulated Ontario internet gambling activity.
Responsible Gambling Contributions
Under the terms of the Operator Agreement between iGaming Ontario and each registered operator, a percentage of gross gaming revenue is directed to Responsible Gambling Ontario (formerly Responsible Gambling Council). This arrangement was a deliberate policy decision at the time the competitive model was designed, ensuring that the growth of regulated gambling activity would be accompanied by proportionate investment in awareness and treatment infrastructure.
In FY 2022-23, iGaming Ontario reported that contributions to the responsible gambling fund totalled approximately $68 million based on the revenue-sharing formula. The funding supports problem gambling research, awareness campaigns, and treatment referral services across Ontario. Operators are also required to implement real-time responsible gambling tools on their platforms, including mandatory reality checks, spending limits, and access to the iGaming Self-Exclusion program (iGAS).
Compliance and Oversight
The Alcohol and Gaming Commission of Ontario (AGCO) serves as the primary regulator for iGaming in the province, with iGaming Ontario functioning as the market operator under AGCO's oversight framework. AGCO's Registrar's Standards for Internet Gaming establish the requirements that operators must meet across player protection, advertising, technical standards, and anti-money laundering compliance.
Operator compliance metrics disclosed in the annual report indicated a generally strong record, with the majority of operators completing required audits and maintaining their licences in good standing throughout the fiscal year. AGCO did issue several compliance notices and initiated two formal enforcement proceedings during the period, primarily related to advertising standard breaches. Details of those proceedings are covered in the AGCO's public enforcement register.
Comparison to Peer Markets
Ontario's $2.4 billion in annual GGR places the market in a similar range to New Jersey, which generated approximately $1.8 billion (US) in calendar year 2023 from its regulated online gambling market — one of the most mature in North America following legalization in 2013. The comparison is instructive: Ontario, with a larger population base (approximately 15 million versus New Jersey's 9.3 million), launched its competitive model nine years later but achieved comparable revenue within two years of operation.
Michigan, which launched regulated iGaming in January 2021, generated approximately $1.4 billion (US) in GGR in its second full year of operations — suggesting Ontario's performance is at the upper range of expectations for comparable jurisdictions at a similar stage of market maturity.
Outlook for Year Three
iGaming Ontario's published projections for FY 2023-24 anticipate continued GGR growth, supported by expected new operator entrants, product expansion by existing operators, and the continued migration of players from unregulated offshore sites to regulated platforms. Market observers have noted, however, that growth rates are likely to moderate as the market approaches saturation among digitally-engaged adult gamblers.
Regulatory priorities for the coming year include enhanced oversight of affiliate marketing practices — following AGCO's 2023 guidance extending advertising obligations to third-party affiliates — and continued scrutiny of live dealer casino products, which have experienced particularly strong growth.