In Canadian gaming updates, an IPSOS report on market channelization within Ontario's three-year-old regulated igaming sector indicated that illegal gambling websites continue to retain a significant influence over players in the region. 

Third Anniversary of Ontario Marketplace 

The recent research, initiated by the Alcohol and Gaming Commission of Ontario (AGCO) along with iGaming Ontario, revealed that 83.7% of residents in Ontario prefer to engage with regulated platforms. 

In the IPSOS survey, 2,003 Ontario residents aged 19 and older were surveyed, including individuals who had placed real money bets or gambled online in the last three months. 

In Ontario, private sector entities first register with AGCO before signing contracts with iGaming Ontario to engage in the province’s regulated gaming market. 

83.7% Opt for Regulated Locations 

As per data from iGaming Ontario today, the province has 49 licensed operators and 84 gaming sites. 

PROLINE, managed by the Ontario Lottery and Gaming Corporation, a crown entity, competes with private sector websites. 

OLG operates three business segments: lottery (retail), land-based gaming (the crown corporation oversees and manages gaming at 30 casino facilities and 37 charitable gaming centers), and digital gaming (iCasino, iLottery, and iSports). OLG handles its own financial reporting. 

Bets in Ontario Increased by 31% 

Indeed, prior to Ontario’s market launch in April 2022, it was estimated that 70% of online gambling took place on unregulated platforms. 

However, it is also accurate that the proportion of individuals who gambled online on a regulated site in 2024 was 86.4%, based on an IPSOS study commemorating the second anniversary of the regulated, competitive market. 

Fewer individuals are transitioning to regulated platforms, based on the research published last week – 16.3% reported wagering exclusively on unregulated sites (increased from 13.6% the previous year). And explore further into that IPSOS study from last week: Of the 83.7% utilizing regulated sites, 20.2% have placed bets on both regulated and unregulated sites. 

Market Channelization Competitive with Other Jurisdictions

"Nothing too surprising in the results to me,” said Canadian Gaming Association President and CEO Paul Burns. “There’s a small drop in channelization but given the strong revenue numbers for the year it’s clear Ontarians prefer operators in the regulated marketplace.”

The revenue figures for the 2024-25 fiscal year were also disclosed last week by iGaming Ontario – total bets of CAD $82.7 billion, and CAD $3.2 billion in gross gaming revenue, representing rises of 31% and 32%, respectively, in comparison to 2023-24. In Ontario, 20% of revenues from online gambling are returned to the provincial government's finances. 

“The third year Ontario iGaming Market Channelization Report is positive news that the vast majority of Ontario citizens who play online do so with a site that is regulated by the Alcohol and Gaming Commission of Ontario,” said Troy Ross, Principal at TRM Public Affairs.

Ross has been at the forefront of the igaming advocacy for 17 years, contributed significantly to various igaming achievements in the country (such as the rejection of anti-gambling laws in Ontario in 2006), and collaborates with provincial governments throughout Canada to inform the public sector about the advantages of regulated online gaming markets. 

Hyper-Competitive Market

“While 84% channelization is a slight decline over the previous year, it remains competitive with global leading jurisdictions like the United Kingdom, Sweden, Denmark and Spain.

"The Canadian marketplace is hyper competitive, with many unregulated options available to the public,” he added. “Ontario will need to remain vigilant and keep cost of compliance reasonable so that operators can continue to offer entertainment choices that can compete with the illegal market. Taken together with the record-breaking third year financial results from iGO, this is another successful year for regulated iGaming in Canada.”

Nonetheless, that's a significant number of individuals wagering on unauthorized platforms. Keep in mind that Ontario no longer differentiates between the grey market and the illegal/black market. 

Rise in Participants on Unrestricted Platforms 

Grey market operators were unregulated yet accepted providers, licensed in other regions, who functioned lawfully in a pre-regulation grey area and were urged to enter the regulated market. In contrast, black market operators function unlawfully, frequently lacking licenses or the desire to adhere to regulations, and currently confront legal consequences. 

The AGCO established an Oct. 31, 2022, deadline for grey market operators to either achieve full compliance or leave the market. After the deadline, according to the Gaming Control Act, AGCO can enforce escalating penalties, which may include suspensions, fines, and even threaten an operator's ability to register for the regulated market. 

Enforcement of the Matter 

According to a statement from AGCO released last week: 

The information also highlights that a significant portion of gaming still takes place on unregulated platforms. Consequently, those players are not protected by Ontario’s strict standards for game integrity and player safety. The AGCO persists in tackling unauthorized gambling platforms in Ontario while enhancing public knowledge regarding the advantages of selecting regulated igaming options. 

This is according to a senior source in the igaming industry:

"Channelization rates aren’t increasing much and even the release sent out by AGCO and iGO note there’s more work to do. Three years in, what is the plan to deal with black market operators who refused to get licensed? Ontario is a big market and given that new operators are still wanting to come in, how level is the playing field given more than 20% of Ontario’s players continue to access unlicensed websites?”

Black Market 

That's a great question, and it became even more pertinent the day IPSOS published their market channelization findings last week. 

Boho Casino, lacking a license in Ontario but licensed by the Government of Curacao, issued a press release on the same day IPSOS published their study, claiming to legally serve “the rest of Canada under its international license.” 

Located in Toronto, Ontario, even though Ontario is regulated, we registered for an account. Available payment options consist of Interac, Visa, Mastercard, Skrl, Bitcoin, and Ethereum. 

In the announcement, participants were encouraged to register on their platform, emphasizing their “reliability,” their favorable user feedback, their licensing, their “vast” game variety, their Canadian-compatible banking, quick payouts, “generous” bonuses, and “excellent” support and security. 

The question then becomes how committed the AGCO is to enforcement, given that channelization figures are trending negatively. 

AGCO's Position on Unregulated Locations 

This was a statement from an AGCO representative on Friday after Casino.org contacted them for a response:

"The AGCO is aware of these illegal ads/sites. While the AGCO does not have any jurisdiction over such illegal sites, our igaming Compliance Team monitors such activity,” the spokesperson told Casinor.org. “The AGCO is continuing to explore additional opportunities to further minimize unregulated online gaming activity in Ontario, including collaborating with various international gaming regulators to share best practices and find opportunities for coordinated activities.”