Ontario's iGaming market is not just a new market to be discovered, it's a fertile ground for growth and opportunity. The Province's iGaming market continues to reveal its potential while experiencing exponential growth.
Ontario's online casino games have swiftly ascended to prominence since they became legal in the Province in April 2022. These games have dwarfed their sport-betting counterparts even in the face of heavy sports-related advertising.
iGaming Ontario (iGO) financial statistics back this up: online casino games in Q1 of 2023 have drawn an impressive $11.6 billion in wagers ($392 million in gaming revenue), significantly surpassing the $2 billion in sports-related betting ($138 million in gaming revenue) in that same time.
These healthy figures are indicative of the sector's sustainability and potential for growth. Deloitte's April 2023 report on the "Economic Contribution of Ontario's Regulated iGaming Market" projects that Ontario's total economic contribution, currently estimated at $1.58 billion, could potentially triple in just a decade.
Gowling WLG helps guide new entrants in navigating Ontario's distinctive regulatory framework. This framework diverges from traditional licensing procedures, presenting operators with the opportunity to secure licensing through the Alcohol and Gaming Commission of Ontario (AGCO) and concurrently establish commercial arrangements with iGO. Such a framework enables private operators to offer their games to Ontario's consumers within the Province's structured framework at a predetermined revenue share.
Though rewarding, the route to market launch is layered; it requires operators to successfully navigate through fourteen comprehensive steps with both iGO and the AGCO:
- Execute a Non-Disclosure Agreement.
- Execute a Letter of Agreement.
- Set up and configure access to iGO's secure data and information communication channels.
- Complete iGO's anti-money laundering information submissions.
- Complete iGO's financial information submissions.
- Participate in operator systems & data readiness cycle.
- Execute the Operating Agreement.
- Ensure games and critical gaming systems are Independent Testing Laboratory certified.
- Register with the AGCO.
- Implement control activities to comply with AGCO Registrar's Standards for Internet Gaming.
- Participate in internet gaming notification matrix training.
- Set up regulatory reporting.
- Set up and configure access to AGCO's secure data and information communication channels.
- Provide technology compliance confirmation to AGCO.
While financial indicators and projections indeed point towards significant economic potential, entering and navigating Ontario's iGaming market requires considerable time, resources and expertise. With our guidance, we can simplify this complex landscape and turn potential challenges into opportunities for growth.