Ontario igaming outperforms five-year state contribution and employment targets says Deloitte
Ontarioās commercial igaming sector outperformed various five-year economic contribution targets set by Deloitte between 2023 and 2024, including jobs sustained and government revenue contributions.
According to a report by Deloitte published on 19 June, the two year old igaming market in Ontario hit or almost reached many of Deloitteās year-five projections in its second year, with the market (excluding the state-backed lottery operator) contributing CA$2.7bn (USD $1.97m) to GDP and sustaining almost 15,000 full time equivalent jobs in the province.
Of this, $1.3bn contributed to labour income. In comparison, market contribution in Ontarioās first year of operation hit $1.58bn, after Ontarioās online gambling market went live on 4 April 2022.
Between April 2023 to April 2024, direct jobs sustained hit 120% of Deloitteās five-year prediction, with government revenues (94%), total full-time jobs sustained (92%), and GDP contributions (93%) also outpacing initial expectations.
The report said approximately $1.4 of economic activity (in terms of GDP) was added to the provinceās economy per every dollar spent by operators on operational and capital expenses (opex and capex), during the 12-month period.
āOur made-in-Ontario igaming sector is being recognised 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,ā said Doug Downey, Ontarioās Attorney General.
āOur 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,ā he said.
Government contribution soars
The contribution towards federal, provincial and municipal government was up to $1.24bn from $761m in year one. Of the total, $790m supported provincial government revenue, $75m supported municipal government revenues, and $380m supported federal government revenue.
Ontarioās regulated competitive igaming market, not including igaming offered by OLG, sustained 2,800 additional full-time equivalent jobs in its second year. Within the 15,000, some 2,675 were in direct employment.
According to figures released by the provinceās regulator in April, a total of $63bn in wagers were placed during the second year of Ontarioās regulated online gambling market.
Looking back over the year, wagering was highest in Q4, hitting $17.8bn. Wagering totals grew steadily over the year, beginning with $14bn in Q1 and following on with $14.2bn in Q2. Wagers then jumped significantly to $17.2bn in Q3.
