A big win for Ontario

When Ontario launched its commercial, legalized gambling market in April 2022, most people were fairly sure it was going to be a big success for the gambling operators and the province's coffers. After all, Canadians are known for their love of gambling, and it is estimated that there are over 19.3 million active online gambling accounts in the country. Therefore, when iGamingOntario (iGO) started issuing licenses, most of the major international gambling companies were queuing up to get a permit. Most people expected it to be a profitable business for the online casinos and an exciting entertainment experience for the players.

However, people were more sceptical about how much it might benefit the local jobs market, and there was a fear that any increase in jobs would be out of the country. There was genuine concern that the introduction of the legalized commercial market could lead to jobs flowing out of the country, particularly away from Canadian land-based casinos to international online casinos operating elsewhere in the world.

Not everyone approves

While there has been considerable pushback from First Nation casinos against iGamingOntario, a recent Supreme Court ruling dismissed the Mohawk Council of Kahnawà:ke (MCK) 's application that iGO was contravening the Criminal Code. The Court ruled that the iGO is the "operating mind" running Ontario's commercial, competitive gambling market and was acting in accordance with the law. While the MCK has said that they will not appeal against the decision nor apply for an operating license, the overall view is that iGaming has had a positive impact on jobs in the province.

Bringing jobs

iGaming Ontario's recently published report "Economic Contribution of Ontario's Regulated iGaming Market", commissioned from Deloitte, shows that in its second year, the province's competitive iGaming market supported almost 15,000 full-time equivalent jobs. In addition, the industry added $1.24 billion to federal, provincial, and municipal government revenues in its second year. Whatever way you look at the figures, it is hard to argue that the sector is of financial importance to Ontario both in terms of jobs sustained and income derived. In addition, having a regulated market has brought extra protection to the province's citizens, who now have all kinds of legal frameworks and systems to protect them.

Attorney General Doug Downey claimed,

"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."

For many of the people who have championed iGamining in Ontario, there is a real sense of pride in the approach they have taken and the speed at which the market has delivered on its promises. The report shows that many of Deloitte's year-five projections for the sector have already been hit or are within striking distance at the end of year two. These include 94% of the government revenue targets, 120% of direct jobs in the industry, and 92% of the projected full-time jobs. Gross domestic product (GDP) contributions are also significantly ahead of initial expectations and are already at 93% of the five-year forecast.

The Attorney General added,

"Our made-in-Ontario iGaming sector is being recognized internationally for its success as a leader in this space. Working together with our partners and industry, we will continue to drive innovation and deliver robust player protections, all while displacing the unregulated market".

Keeping people safe through a regulated market

The displacement of the unregulated sector is one of the things that Ontario is particularly proud of. It was one of the key arguments in favor of launching the market in the way it did. The sector comes under the control of the Alcohol and Gaming Commission Ontario (AGCO), and iGO is responsible for conducting and managing iGaming through private operators. Other provinces have taken a different approach and operate their own iGaming platforms, but the general consensus is that the province's approach might be the most beneficial. Ontario online casinos are 100% legal for players, so there are no grey areas for customers or operators.

Everyone knows where they stand and can participate in the market. This means that rather than employment flowing out of the country to offshore operators, all kinds of jobs can be created within the province. This really is a win-win situation for all involved. These are often high-skilled technical and creative jobs in software, game development, computer programming, and artificial intelligence. It is not only jobs that are created directly either, but a considerable number of roles are also created indirectly. As with any thriving industry the beneficial ripples can spread a long way out from the centre.

Counting up the jobs and revenue

The report classifies direct jobs as those that are contributed directly by the iGaming operators, and indirect jobs are those from the industry's suppliers—these amount for about 80% of the jobs in the sector. In addition, there is also an element of induced jobs, which are roles supported by the spending of salaries and wages of people employed by the iGaming operators and the suppliers' employees.

As well as great jobs, there are also significant revenue streams for the operating platforms and the government alike. The report shows that the market passed $1.24 billion in its second year, with $790 million flowing to the provincial government. A further $75 million supported the revenues of municipal governments and $380 million to the federal government. Those secondary revenue flows to government coffers also support many more jobs that are not accounted for in the report.

Heidi Reinhart, iGaming Ontario's Board Chair, said,

"This report puts Ontario's iGaming market government revenue contribution at over $2 billion since it launched, and with job contribution up by 24% from its first year, the benefits to Ontarians are significant."

Martha Otton, iGaming Ontario's Executive Director, concluded,

"Through the development and growth of Ontario's regulated iGaming market, we're helping achieve the government's goals in terms of job creation, innovation, and development while providing a safer experience for consumers."