Ontario's Single-Game Sports Betting Industry Scores Big with $2.7 Billion Contribution to GDP

Ontario's single-game sports betting industry is enjoying significant growth, as iGaming Ontario (iGO) reports that the sector contributed $2.7 billion to Ontario's gross domestic product (GDP) in 2023.

This figure represents an approximately 70% increase from $1.58 billion in 2022, the industry's inaugural year.

Ontario's regulated igaming market officially launched on April 4, 2022, making it the only province in Canada with an open, regulated igaming market.

The report, conducted by Deloitte, covers the period from April 4, 2022, to April 3, 2023.

"I like this report because it goes broader into the overall economic benefits to the province," said iGO executive director Martha Otton. "It's easy to focus on the revenue share that we provide to the province but what this report highlights is all of the other benefits to the three levels of government as well."

The report highlighted that in its second year, Ontario's regulated market included 47 operators and 77 gaming sites, slightly up from 45 operators and 76 sites in 2022.

Additionally, the economic impact was significant, with every dollar spent by igaming operations supporting approximately $1.40 of GDP in Ontario's economy, up from $1.14 in the first year.

The industry also sustained 14,935 jobs, marking a 24% increase from the previous year's 12,070 jobs.

Operators directly employed approximately 2,675 people with an average annual compensation of $122,500 per person, which is 60% higher than the average salary in Ontario.

The estimated contribution to labour increased by 45% to $1.31 billion from $905 million.

"Our igaming sector is not only a job creator here in Ontario but it shows the world our ongoing commitment to building a sustainable and responsible igaming industry," said Ontario Attorney General Doug Downey in the report.

The total government revenue generated by the industry exceeded $1.24 billion, with $790 million going to Ontario, $380 million to the federal government, and $75 million to municipal governments.

Contributions to provincial and municipal government revenues in Ontario increased by 66%, from $525 million to $865 million.

The report also revealed that in just two years, the industry has nearly reached many of Deloitte's fifth-year projections.

This includes 94% of government revenue projections, 120% of direct jobs sustained, 92% of total full-time jobs sustained, and 93% of GDP projections.

"For sure, we're anticipating at a certain point there will be a levelling off," Otton said.

"To be frank, we're not seeing the leveling off yet but year over year it's unrealistic to expect that we'll see growth of over 70% so we're definitely not expecting that.

"But I think operators see Ontario as (being) attractive, we have a lot to offer that other jurisdictions don't."