Ontario iGaming Operators Pleased with Q2 Results

Despite no official word on the financial performance of Ontario’s iGaming market from the province, some of the locally licensed operators have discussed their first few months of operations. Most of the brands are quite satisfied with their performance in Q2 or the period of April 1, 2022, through June 30, 2022, while others prefer to keep their expectations realistic.

After years of efforts from the provincial government, the market officially launched on April 4, 2022. Its aim was to keep revenue in the province and provide gamblers with a safe and regulated framework, while also eliminating gray market operations. So far, the Alcohol and Gaming Commission has approved more than 20 brands, which are now up and running in the province.

Encouraging First Results

CEO and President of Penn Entertainment shared that the firm is quite pleased with its performance in Ontario through its theScore Bet app. He noted that the company already had a huge player base in the region which has come helpful for its regulated debut. He also shared that cross-sell from sports betting to the online casino is more than 50%, and it can go even higher.

However, DraftKings expects a slow grind in the market. CEO of the sportsbook, Jason Robins, commented that the company has met its expectations for the country, but he noted that they do not have the same ceiling in the province as they do in the USA. He explained that the company expected 10% to 20% in the province, which is less than the usual 20% to 30% in the US.

Bally Bet, which was also licensed to operate in the province, shared that its web-only product is doing well in Ontario. CEO of the company, Lee Fenton noted that the company launched only a few weeks ago, and its product has enjoyed a great start. He also predicts that the province will be the first jurisdiction where the company integrates its combined sports betting and iGaming app.

At the end of July, PointsBet Canada also shared its first financial numbers from the province’s igaming market. The sportsbook reported approximately CA$14 million in online handle from its launch to June 30, 2022. This a gross gaming revenue of CA$600,000 and its total market share was at approximately 4.2% in comparison to other operators who are licensed in the province.

The CEO of MGM Resorts International, Bill Hornbuckle, which operates in the province via its BetMGM app has also shared a few words on its performance. He commented that the company is exactly where it thought it would be in the province, especially with its iGaming vertical. He stated that the market is a high single-digit one, which is rapidly expanding.

Land-Based Expansion Could Come Soon

After the introduction of the iGaming market in April, the local stakeholders and governments are focused on introducing brick-and-mortar sportsbooks across the province. This could come as early as September as Niagara Casinos posted online job vacancies for sportsbook supervisors and sportsbook ambassadors, which suggests that land-based operators might be a step closer to launching such venues.

Source: Porter, Conor “Ontario and Canada cordial markets for operators in Q2”, SBC Americas, August 8, 2022