Online gaming sector in Canada projected to generate CA$1 billion in revenue by 2028
Ontario's foray into a regulated, competitive iGaming market has proven to be a game-changer, not just for private operators, but for the Ontario Lottery and Gaming Corporation (OLG) as well.
The Regulated Model: A Win-Win Situation
According to OLG's latest Fiscal 2025-2028 Business Plan, both conventional and online gambling revenue are on the rise. The organization projects an impressive 41% growth in online revenue, aiming to surpass CA$1 billion annually by 2027-2028. Land-based gaming operations are expected to grow 7% to CA$4.65 billion in the 2024-2025 fiscal year. Online gaming, meanwhile, is slated for a steady climb, from CA$819 million in 2024-2025 to CA$1.049 billion by 2027-2028. The revenue for online gaming reached CA$745 million in the 2023-2024 fiscal year.
Troy Ross, president of TRM Public Affairs, applauded the success of the regulated model introduced in 2022, when Ontario opened its doors to private operators under strict oversight. "A regulatory regime, almost 90% of the play is with the lottery channels," Ross said, adding, "The evidence suggests this model is working well." Grey market operators either exited or obtained licenses after the Alcohol and Gaming Commission of Ontario gave them a deadline of October 31, 2022, to comply, with OLG and 49 licensed operators now serving the province's players.
Customer Focused Approach Yields Results
OLG's chief gaming officer, Dave Pridmore, shared Ross's optimistic outlook, emphasizing the role of competition in pushing the crown corporation forward. "We feel the continued success of OLG.ca is based on that fact that we take a customer-centric view on our digital operations to continually improve our overall experience," he said. Pridmore also highlighted accessibility efforts, including the launch of the first digital slot game with built-in features for players with disabilities.
As the iGaming landscape evolves, OLG is not only holding its ground, but thriving. Net profit returned to the province is expected to rise from CA$2.6 billion in 2024-2025 to CA$3.2 billion by 2027-2028, supporting public services and community programs across Ontario.
"It is an ambitious goal that will also benefit charities, host municipalities, and First Nations and requires us to push forward in optimizing all of our products, channels, and services," the report stated. The business plan also praised OLG's unique position in the competitive digital market, while foreseeing "strong growth potential" ahead by leading "with a higher purpose" and continuing to deliver "unmatched, integrated, and secure" experiences.
It's clear that Ontario's approach to iGaming has brought about a wave of change for the better, not just for the private operators, but for the OLG as well. The focus on customer experience and accessibility initiatives, paired with competition, appears to be the winning combination driving success in this evolving market.
Technology plays a significant role in the success of Ontario's iGaming market, as the regulated online gambling platform experiences steady growth and advancements. OLG consistently invests in digital operations to maintain a customer-centric approach, improving overall experience and accessibility, such as launching the first digital slot game with built-in features for players with disabilities.
