Ontario’s online gambling and sports betting industry boosts local economy and employment

A recent report reveals the significant economic impact of Ontario’s online gambling and sports betting industry in its first year of operation. The industry has not only generated $761 million in government revenue but has also created employment opportunities for nearly 10,000 people.

$1.6 billion contribution to GDP

The report, commissioned by iGaming Ontario (iGO), the government agency overseeing the market, highlights the broader economic benefits beyond the direct wagers placed. It includes fees paid to accounting and legal firms, advertising expenses, and revenue generated by suppliers to the betting companies.

According to Deloitte, the industry contributed $1.6 billion to the province’s gross domestic product (GDP) during its inaugural year and is projected to reach $4.7 billion within the next decade.

Ontario’s online betting market officially launched in April 2022, making it the first province in Canada to introduce a legalized private online betting platform. This initiative aimed to redirect the substantial sums spent by Ontarians on unregulated offshore betting platforms, generating tax revenue and attracting gambling companies to the province.

45 operators and 76 gambling websites

During the first year, 45 licensed operators operated a total of 76 gambling websites. These operators collectively generated $1.4 billion in revenue, resulting in over $250 million in taxes paid to the province, based on a 20% tax rate (the exact figure has not been officially disclosed).

The success of the industry’s first year signals a positive trend for Ontario’s economy, with increasing contributions expected in the years to come. The government’s efforts to regulate and capture the online gambling market have not only bolstered revenue but have also provided employment opportunities and stimulated economic growth in the province.