Ontario, Canada, Legalized Sports Betting

Ontario's legal sportsbooks and casinos opened on April 4, 2022, in Canada. The legalization framework has a unique model. One that clearly differentiates it from other places where sports betting has recently been legalized, such the United States. Canada, like its southern neighbor, has taken a systematic approach to legalization. Each province must build its own system to fit the unique needs of the region. However, Canada does not have a limit on the number of licensed operators in each province.

In preparation for legalization, Canadian gambling regulators in Ontario had already approved over 25 reputable sportsbooks. This list includes some globally renowned sports betting companies such as Bet365, BetMGM, DraftKings, Unibet, and Caesars. Despite being certified by the Alcohol and Gaming Commission of Ontario, such operators were required to enter into a commercial agreement with the iGaming Ontario group. The Ontario jurisdiction was also emphatic about the province's legal betting age, which is set at 19 years.

Why Ontario is a Gold Mine for Sports Betting


Ontario is the most populous province in Canada and is home to the vast country's capital city, Ottawa. The province has 14.2 million residents, accounting for nearly 40% of the total population of the country. This explains why it is a sought-after market for forward-thinking gambling operators. Prior to the enactment of the 2021 Safe and Regulated Sports Gaming Act, which granted individual provinces the authority to regulate sports betting as they saw fit, online gambling was not entirely prohibited. There were legal loopholes that allowed various sportsbooks to operate in a gray market. While this was mostly offshore sportsbooks, some local operators were among them as well. Legalization enables such operators to obtain legal licenses, which in turn consolidate revenues in the local market.

According to recent market projections, Ontario's newly launched sports betting market will generate $800 million in its first year. Other projections by Deloitte Canada estimate that single-event sports betting legalization will generate approximately CA$28 billion in Canada within a half-decade. When compared to other renowned sports betting landscapes, Ontario's cumulative revenue will most likely trail that of New York. Given that this is only the beginning of the launch, it is clear that Canada will be a gambling gold mine as regulations for online casinos and sportsbooks become more lenient.

Minimal Entry Barriers for Online Sportsbooks in Ontario


Canada is arguably developing the most open regulated sports betting market in the world. Following the legalization, many licensed iGaming operators immediately launched their online casino apps. Such apps will be freely available. This distinguishes Canada from the US market, which restricts access to such online casino apps in states such as New Jersey, Nevada, Pennsylvania, and Delaware.

Additionally, Ontario regulators do not require online-based casinos to be in partnership with a land-based casino. This makes it relatively easy for start-ups and smaller firms to expand their online presence. It is much more practical and should create a highly competitive market. Taxation rates are also quite favorable, with a fixed rate of 20% and a licensing fee of CA$100,000. Following Ontario's successful launch, other Canadian provinces are expected to follow suit. Alberta appears to be next and could see its online sports betting legalization bid succeed later in 2022. Other provinces that are hesitant to open their markets to new operators could instead grant licenses to existing legal lotteries to expand their operations to include online sportsbooks.

Will Legalization Affect the Sports Viewing Experience?


Sports is a revered enterprise in Canada. As a result, any sports betting activity is strictly regulated in order to preserve the integrity of the country's beloved sports. The constant betting advertisements and promotions will not be permitted on Canadian or Ontario televisions. Sportsbook marketing is strictly regulated by the Ontario Alcohol and Gaming Commission. The goal is to maintain high-quality viewing of sporting events while also providing online casino players with a welcoming betting environment that does not impose on other industries.

On the other hand, the liberalized sports betting market in Ontario offers local and international gamblers better incentives for in-game and regular betting on sporting events. However, with the rise of online sports betting, daily fantasy sports, which were previously offered by some betting operators in Canada's gray markets, are expected to decline.

Conclusion


The Ontario Lottery and Gaming Corporation not only allows sportsbooks to operate online, but also grants licenses to retail outlets. The massive revenue lost to foreign and illegal gambling operators motivated Ontario to improve the province's legal gambling environment through single-game betting. The move benefits not only sports betting enthusiasts around the world, but also the country, as it increases tax revenues and helps to eliminate fraudsters from the growing industry.