It’s certainly no secret that Ontario has some ground to make up to some of its US peers when it comes to online casino revenue.
But, with those North American peers getting a solid head start on Ontario online casinos, perhaps the race isn’t being judged fairly.
Ontario’s first full year of legalized online casinos looks much different when you compare it to the first full years of Michigan, New Jersey and Pennsylvania.
Ontario only behind Michigan for first year of OC revenue
Ontario’s first full year of online casinos went from April 1, 2022 to March 31 of this year. During that period, Ontario recorded $940 million in Canadian dollars.
Converting that to the American dollar, just to be fair, that equates to roughly $711 million. And that number does not include the revenue from the Ontario Lottery and Gaming Corporation’s online casino.
Of the three US competitors noted, only Michigan fared better than Ontario in its first year with an online casino industry.
Here’s how much each of those three states generated (in American dollars) in their first full 12 months of legalization.
- Michigan (Feb. 1, 2021-Jan. 31, 2022): $1.21 billion
- Pennsylvania (Aug. 1, 2019-July 31,2020): $364.3 million
- New Jersey (Dec. 1, 2013-Nov. 30, 2014): $119.5 million
Ontario still far behind in per capita revenue average
The first quarter of fiscal year 2023-24 saw Ontario grow significantly in revenue, posting $545 million in online gambling revenue. That was up 236% from the same period the year prior.
Of that revenue, $392 million came from online casinos. If the remaining three quarters hold up to that pace alone it would lead to $1.57 billion in online casino revenue for the second year of operation in Ontario.
Ontario has a listed total population of 15.5 million people total, with 12.25 million being 19 or over. That means the average Ontario adult contributed $32 to the online casino industry in Q1 of this current Fiscal Year.
That would put them on pace for $64 through six months and $128 for the entire second year of operation.
By comparison, the three US competitors have seven months of 2023 revenue data. Through seven months, the per capita revenue contributions stand at:
- New Jersey: $149
- Michigan: $137
- Pennsylvania: $112
Those marks are for seven months, that puts the yearly pace for each at:
- New Jersey: $255
- Michigan: $235
- Pennsylvania: $192
That’s not even factoring the Canadian-US dollar conversion for Ontario. So, while it’s clear that Ontario still has work ahead to catch up to its peers, it’s in a good position this early into its legalization.
With the most available online casino operators of the four, Ontario has the potential to continue to make significant growth with each quarter and close the gap on its US competitors.