The latest IPSOS survey commissioned by the Alcohol and Gaming Commission of Ontario (AGCO) shows that, on the third anniversary of the operation of the legal online gambling market in the province, 16.3% of players still choose to bet on unregulated sites.
This figure has risen from 13.6% last year, indicating that illegal operators still hold a significant market share.
Market Status and Regulatory Effectiveness
The survey covered 2003 Ontario residents aged 19 and over, showing:
83.7% of players choose regulated sites
20.2% use both regulated and illegal platforms
16.3% rely entirely on illegal sites
Ontario currently has:
49 licensed operators
84 legal gambling websites
Additionally, the Ontario Lottery and Gaming Corporation (OLG) operates the PROLINE platform
Financial Performance and Market Challenges
Despite the presence of illegal competition, Ontario's legal online gambling market continues to show strong growth:
Total betting amount for the fiscal year 2024-25 is 82.7 billion Canadian dollars, a 31% increase year-over-year
Total gambling revenue of 3.2 billion Canadian dollars, up 32%
Contributing 20% of gambling tax revenue to the provincial government
Paul Burns, President of the Canadian Gaming Association, said: "Although the degree of channelization has slightly decreased, record revenue figures prove that players prefer regulated platforms."
Enforcement Dilemmas and International Cooperation
In the face of ongoing illegal operations, AGCO has taken several measures:
Set October 31, 2022, as the final compliance deadline for the grey market
Penalties such as closures and fines are imposed on violators
Sharing best practices with international regulatory bodies
However, operators like Boho Casino, holding a Curacao license, still provide services to Ontario players through methods like Interac and Bitcoin. An AGCO spokesperson stated: "We are exploring more ways to reduce illegal gambling activities."
Industry Views and Future Outlook
Troy Ross, head of TRM Public Affairs, noted: "An 84% channelization rate is comparable to leading markets like the UK and Sweden. However, the Canadian market is exceptionally competitive, requiring reasonable compliance costs to maintain competitiveness."
Industry insiders question whether, after three years, regulatory bodies need to take stronger measures against black market operators who refuse to obtain licenses. As new operators continue to enter, ensuring that the 20% of players who still choose illegal sites switch to compliant platforms will be key to the continued healthy development of Ontario's online gambling market.
