Last week, the Auditor General of Ontario released a report commending the Ontario Lottery and Gaming Corporation for the advancements they've achieved amidst strong competitive challenges in the last 19 months.
The crown corporation had to alter its business practices when the competitive, commercial iGaming market launched in Ontario in 2022. As per iGaming Ontario, the province currently has 50 licensed operators, featuring many prominent brands such as FanDuel, BetMGM, and DraftKings.
Income from Casino and Sports Wagering Increases
“OLG has consistently achieved unprecedented growth in its digital sector and has successfully sustained a market share that exceeds expectations,” stated OLG representative Tony Bitonti. "Building customer trust in our brand is crucial in a competitive market."
OLG operates in three business sectors – lottery (retail), land-based gaming (the crown corporation oversees and manages gaming at 30 casino venues and 37 charitable gaming locations), and digital gaming (iCasino, iLottery, and iSports).
OLG announced gross revenue from online casinos and sports betting for FY 2023-24 at $630 million, an increase from $561 million in 2022-23.
Canadian Gaming: Statistics on Market Share
In the Ontario private market, excluding OLG, total wagers reached $64 billion in FY 2023-24 (from April 1, 2023, to March 31, 2024), resulting in $2.4 billion in gaming revenue.
As per H2 Gambling Capital, the global expert market data provider for the gambling sector, OLG has been maintaining its position. In Ontario, commercial operators hold a 78% market share, with OLG possessing 16% and offshore platforms accounting for 5%.
H2 employs various sources, such as web traffic, affiliate traffic, and search volume metrics, to gauge market size and growth rates in regulated markets lacking official data.
H2: Bet365 Takes the Lead
Information provided to Casino.org on Friday indicates bet365 holds a 15% market share in FY 2024, with FanDuel at 13% and Betano at 9%. Super Group occupies 8%, while BetMGM, Entain, and BetRivers each hold 7%.
Last week, Auditor General Shelley Spence released an annual report that revisits the suggestions made to OLG in a 2022 performance audit report on casinos, lotteries, and internet gaming. The report, published after the regulated market was launched, offered suggestions on enhancing OLG's competitiveness in the new landscape.
Carrying Out Suggestions
As per the AG Report, by November 15, 2024, OLG had completely executed 32% (17) of the suggested actions, and is currently working on 38% (20) additional ones.
OLG has put into action recommendations such as launching additional iGaming casino products, expanding live game options (poker, blackjack) in partnership with other provinces, reviewing staffing levels to ensure they are appropriate for OLG’s mandate and duties, itemizing casino operator fees distinctly in financial reports to taxpayers, and incorporating self-exclusion programs throughout OLG offerings.
New Gambling Offering
As stated in the AG report, “OLG created an extensive plan regarding the launch of new products and the schedule for their rollout” in 2023.
"As part of this strategy since our 2022 audit, OLG began introducing games every week with new features to drive engagement. Between February 1, 2024, and April 30, 2024, OLG introduced 80 new games or about six new games per week,” the report added.
In June 2023, OLG formed a team to investigate potential new offerings, such as real-time games and live games that could be provided from a studio shared with other provincial lotteries.
By June 2024, OLG was continuing to investigate possibilities for new product launches and considering whether to become part of a national network or maintain the product in a particular area. The new option is anticipated to be implemented by April 2025.
Equal Opportunities
OLG's Chief Gaming Officer, Dave Pridmore, stated that the competitive market compelled OLG to reconsider its products and operations, and the open market equalized competition by ensuring all participants adhere to the same standards.
"We thank the Auditor General of Ontario for the findings and recommendations in previous audits of OLG — as well as the follow-up observations,” said Bitonti. “We always welcome independent reviews of our business, which contribute to continuous improvement of our operations and performance.
“OLG has been actively working to implement the AG’s recommendations,” Bitonti added, saying that close to 80% of the recommended actions have been fully implemented or are in the process of being implemented.
