HomeBlogOntario’s iGaming market: Regulations, growth, and consumer trends
Ontario’s iGaming market: Regulations, growth, and consumer trends
Ontario has emerged as a leader in online gambling in Canada, following the legalisation of single-event sports betting in 2021 and the launch of a regulated iGaming market in 2022.
The province’s well-structured regulatory framework, competitive tax rates, and emphasis on responsible gambling have significantly shaped consumer behavior and business operations. With more players turning to Canadian casinos and a growing number of operators entering the market, Ontario is on track to becoming a major hub for online gaming.
Regulatory framework and market structure
Unlike other provinces and international markets, the iGaming model in this region operates through iGaming Ontario (iGO), a subsidiary of the Alcohol and Gaming Commission of Ontario (AGCO). Rather than issuing direct licences, this framework allows private operators to function as government contractors, ensuring regulatory oversight and consumer protection.
Key regulations and compliance requirements
Online casinos in Ontario must follow national and provincial laws. The Gaming Control Act (1992) regulates gambling, while Bill C-218 (2021) legalized single-event sports betting. Operators must also comply with Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) for anti-money laundering safeguards and Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) for financial oversight.
The regulatory framework enforces strict Know Your Customer (KYC) requirements, mandating identity verification through government-issued documents and live authentication. These measures help prevent fraud, underage gambling, and financial crimes.
Unlike the UK, where operators are granted direct licenses and have less rigorous KYC verification, Ontario enforces higher compliance standards to protect players and the integrity of the market.
Taxation and market growth
With a 20% tax rate on gaming revenue, the province offers one of the world’s most competitive environments for gaming operators.
The combination of a well-regulated industry and a competitive tax structure has fuelled market expansion, leading to a projected £1.2 billion in revenue by 2026, positioning Ontario among the top iGaming markets in North America, a decline in offshore gambling, as more players opt for licensed, best online casinos Canada to ensure security and fair play, and increased foreign investment, with international gaming companies entering the market to capitalise on Ontario’s growing player base.
Consumer behaviour and market trends
With the rise of online casinos in Canada, gambling habits have shifted significantly. Instead of visiting physical casinos, players now engage in gaming sessions from their mobile devices, accessing popular titles such as slots, blackjack, and live dealer games.
Mobile gaming and player preferences: High RTP slots, live dealer games, and real-time sports betting attract players who value convenience, leading to shorter, frequent gaming sessions on mobile. Many gamblers return to trusted platforms like Casino Classic Canada for top games and promotions, driving competition among the best online casinos in Canada.
Responsible gambling and player protection: Ontario enforces strict responsible gambling measures to protect players from excessive betting and gambling addiction. Licensed operators must provide self-exclusion programmes for individuals seeking to take a break from gambling, deposit and wager limits to promote financial control, and advanced fraud detection systems to prevent identity theft and financial abuse.
These measures have reassured players that Canadian casinos operating within Ontario’s regulatory framework prioritise consumer protection over profits.
Challenges for operators: While Ontario’s iGaming market is thriving, it presents regulatory challenges for operators. Companies must comply with FINTRAC and PCMLTFA regulations to prevent money laundering, meet AGCO’s stringent know your customer standards, which require detailed identity verification, and operate under iGaming Ontario’s licensing agreements, rather than receiving direct gaming licences.
Despite these hurdles, the potential for long-term profitability makes Ontario a sought-after market for both domestic and international casino operators.
The future of Ontario’s iGaming industry
Ontario’s regulated iGaming market has transformed the online gambling landscape in Canada. By fostering a secure, competitive, and responsible gaming environment, the province has successfully attracted players, operators, and investors alike.
As the market continues to evolve, other provinces may follow Ontario’s lead in legalizing and regulating online gambling. With increasing technological advancements, enhanced player protections, and expanding operator participation, Ontario is poised to remain a dominant force in the North American iGaming industry.
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