The debate around the next Canadian province to follow Ontario’s lead and put in place a regulatory competitive model for online gaming isn’t dying down, with Alberta seemingly the best bet.
But Quebec is very much in the conversation as well. With Quebec’s budget challenges, the government has asked crown corporations like Loto-Québec, which runs igaming in the province, to optimize their operations and find cash savings totaling $1 billion. Now, the Quebec Online Gaming Coalition has released a report from the chartered accounting firm Mallette that shines a spotlight on the economic benefits of the Ontario regulatory model.
Mallette conducted an economic analysis of iGaming Ontario for the 2022-23 fiscal year, its first year of operation. iGaming Ontario works alongside the Alcohol and Gaming Commission of Ontario (AGCO), the Ontario Lottery and Gaming Corporation (OLG), and the government of Ontario to oversee licensed igaming in the province.
According to the report, during the first year of operation, revenue after expenses for the various levels of government, including the federal government, was $230 million, and the revenue generated by iGO for the Ontario government is at least $145 million per year. The report also said that in fiscal-year 2022-23, OLG revenue from online gaming increased by 31 percent.
The report said iGaming Ontario revenues rose by more than 70 percent in the 2023-24 fiscal year.
The Quebec Online Gaming Coalition, composed of Betway, Bet99, DraftKings, Entain, Flutter, Games Global, and Rush Street Interactive and partnering with Apricot Investments, is committed to working with the Quebec government and local stakeholders to develop a new regulatory framework for the province.
“In addition to capturing more than 86% of the unregulated market in its first two years of operation, the Ontario model has shown that it can be profitable from the outset and be a major economic driver for the province,” said Nathalie Bergeron, spokesperson for the Coalition, in a statement. “The premier characterized the last budget as a ‘large deficit.’ We remind the Minister of Finance that a regulatory model like Ontario’s would not only bring in new revenue, but would also allow him to implement the responsible-gaming measures he deems necessary.”
Bergeron added in a statement that the Coalition is offering the Quebec government a “concrete solution” to counter its budget deficit, via potential revenues from an Ontario-style regulatory igaming model.
We approached Loto-Québec for a comment about the report, but as yet haven’t heard back.
