January 26, 2023
With their 2022/23 3rd quarter results announced, observers can finally get a more full idea of the size of the Ontario iGaming market. This is because it is the first quarter where essentially all of the significant, previously "grey market" brands have been fully integrated into the iGO platform. All of the existing players that had been acquired on brands like Betway, BetVictor, Spin Casino, JackpotCity Casino, Pinnacle and many casino-only brands were able to put in two or even three full months of play on the iGO platform for the first time, as these were not live within iGaming Ontario in Q1, or even Q2 in most cases.
Total wagers of $11.53 billion represents a 91% increase over Q2 (July 1 to September 30, 2022) and does not include promotional wagers (bonuses).
Total gaming revenue of $457 million shows a 71% increase over Q2. This figure represents total cash wagers, including rake fees, tournament fees and other fees, across all Operators from October 1 to December 31, 2022 minus player winnings derived from cash wagers and does not take into account operating costs or other liabilities.
36 Operators (a 50% increase over Q2) and 68 gaming websites (a 62% increase over Q2) are as of December 31, 2022.
910,000 active player accounts represents a 45% increase over Q2. These are accounts with cash and/or promotional wagering activity and do not represent unique players, as individuals may have accounts with multiple Operators.
Average monthly spend per active player account of $167 in Q3. 18% higher than in Q2.
Nope. The Ontario igaming market described in the report includes all igaming operators that operated pursuant to an operating agreement with iGO from October 1 to December 31, 2022. As such, it does not include the Ontario Lottery and Gaming Corporation igaming offering. This means that all the hande and revenues as collected through the OLG's online and mobile casino has not been included. The online and mobile sports betting handle & revenue associated to OLG's Proline+ has also not been included in this report.
Lastly, despite many international online gaming brands closing their virtual doors to Ontario residents, many significant now "black market" gaming and betting sites still accept Ontario players. This is not the case with regard to US states. There are far more "black market" sites that will serve Ontario, than there are that will risk serving US states. In other words, more money stays at home and is reported by regulated US states, whereas much more money still leaves Ontario toward the black market in a relative sense. Ontario revenues lost to the "black market" have of course not been included in the report's figures. While the results for iGaming Ontario are incredible, they will no doubt be compared against other market jurisdictions in the USA and abroad. These issues should be taken into context when such comparisons are made.
Nope again. Expect a plateau and a dip on handle and revenue in fiscal Q4. While we will get a full quarter from all the new operator entrants that had a partial Q3, plus some new operator entrants in Q4, the one-time bump from the World Cup has come and gone, and the NFL season will end on February 12. The cyclicality of the sports schedule dictates that there must be a slowing of handle and revenue to a large degree.
However, as Ontario consumers become educated on the issue of legal iGaming Ontario brands versus those that operate in the black market, and they naturally begin to turn away from the latter toward legal Ontario online casinos and sportsbooks, we can look to see some growth versus the same respective quarters next year.
From now on, comparing quarter-over-quarter will make little sense due to this seasonal cyclicality. We should be comparing this Q3 versus next year's Q3, and this year's Q4 versus next year's Q4, so we are largely comparing performance where the sporting seasons are the same, the constant.
Go back to SNBET's Ontario gaming news page.
|