Ontario Expects Eight
The potential profitability of Ontario’s internet gambling market has been discussed. The legalization and approval from lawmakers and the AGCO (Alcohol and Gaming Control Board) would not have happened without promising revenue projections that were produced through research into this new competitive industry.
Ontario’s new iGaming system is set to generate $75 million in revenue for the province over three years, according to auditor general Bonnie Lysyk.
Multi-Year Fiscal Plan
Ontario’s newest auditor general, Bonnie Lysyk, has just released her review of the pre-electoral 2022 multiyear fiscal plan. The government requires that this be done under provincial law, and it is used in making up Ontario budgets as well because they are based on factors for forecasting what will happen within our next three years’ worth (or so) of revenue collections!
The report provides valuable information on how the province is financially healthy for years ending 31 March 2023, 2024 and 2025.
Lysyk’s most notable message was that corporations have understated tax revenue estimates by several billion dollars. She is concerned about programs and initiatives relying on this money that might receive the wrong impression if they don’t get enough support from their governments in terms of funds available for use, so she called out Canada’s Finance Minister Bill Morneau to bring attention back towards reality with what he knows best – economics!
Ontario’s gambling endeavours majorly contribute to the provincial economy. With expected revenue of $4 billion over three years from 2018-2021, it makes up 4% or close to 100 million in total output for this period, which includes liquor sales alongside cannabis and power generation-related earnings, among other things.
The iGaming market in Ontario has only just launched, and there is expected to be significant growth over time as more people become interested. However, the report notes how they can’t estimate future revenue based on numbers provided thus far because this new industry isn’t quite flowering yet; Lysyk predicts net results from revenues & expenses would likely land somewhere between $2-$4B3 per year once all goes according to plan (but still below its potential).
- $18 million in year ending 31 March 2023
- $26 million in year ending 31 March 2024
- $31 million in year ending 31 March 2025
The $75M total is positive, especially considering that the operators in this new market pay 20% of their revenues towards taxes.
Jobs, Jobs, Jobs
With Canada set to legalize online gambling this year, a recent study has looked at how many jobs the industry could create and will create in Q2. The research is based on informal surveys conducted by PlayCanada but talks with operators and suppliers of related businesses (I received some answers publicly while others were off-the-record). All that information allowed them to make several estimates which they note may underestimate job growth because companies have not yet revealed whether or not they plan to apply for licenses.
The new iGaming Ontario market could add up to 1,295 jobs in the province. That is an immense boost for our economy and will provide much-needed opportunities!
The internet gambling industry is booming! Two hundred fifty new jobs were opened up in just one year. This has allowed many people who would not otherwise be able to get these positions, due either them being unqualified or because of the high competition between other job seekers for available slots at once, time became possible thanks to this development – giving us an idea of how much more growth there could potentially still have ahead if we keep investing money into research and innovation as well implementing changes which make life easier (e-g.: automation).
Several companies came out with their numbers.
- TheScore, for example, is adding 400 jobs for the new market, having hired 200 people before the 4 April market launch. There is already a plan in place to expand the Ontario office space with a new office on the Toronto waterfront.
- PointsBet Canada is adding a new office in Toronto’s downtown area, which will deliver 100 new jobs.
- Rush Street Interactive is opening an office in the Toronto Financial District. It had 40 employees at the time of the survey but 20 open positions awaiting employees. And the plan is to add another 60 jobs in the coming months.
- Rivalry is already a Toronto-based company with 25 employees in the city. But the company’s CEO plans to add more people to its engineering, games, design, and sportsbook departments.
Canadian Gaming Association head Paul Burns told PlayCanada that the competitive tax climate is a draw for Ontario. Many companies will locate there because of all its benefits, which include an industry with vast potential like video gaming and gambling in Canada – something new according to MrBurns’ knowledge!
Years for True Numbers
The new regulated sports betting market was finally available for those waiting patiently. Gamblers and bettors alike were excited to explore the possibilities this newest opportunity offered, not just on single-event action but also throughout different seasons of hockey games or football teams playing each other!
The enthusiast in me is excited to see what new operators launch, but the reality will likely lead to a lull. But don’t count this as an excuse for you not to start your site! Whether we’re waiting through Covid-19 or any other promotions that may come our way over these next few months – there’s no better time than right now if revenue needs to be booming by wintertime and major sports seasons aren’t affecting them too drastically either (so far).