An Analysis of the 2023 Annual Report of the Office of the Auditor General of Ontario by chartered accounting firm Mallette demonstrates the model’s profitability.
Montreal – April 23 2024 – The Québec Online Gaming Coalition, an industry-led organization that brings together the leading online gaming operators, today revealed that a report by chartered accounting firm Mallette demonstrates the potential of Ontario’s online gaming model, iGaming Ontario, which generated close to $230 million in revenues for the various levels of government in 2022-2023, its first year of operation. We can expect even higher revenues for the government this year, as iGaming Ontario’s revenues also rose by more than 70% in the 2023-2024 fiscal year.
Mallette’s economic analysis of iGaming Ontario’ model shows that a regulatory model for online gaming can generate significant economic benefits for Canadian provinces from the very first year of operation. These revenues are complementary to those generated by Crown corporations.
The report shows that:
- After expenses, revenue for the various levels of government, including the federal government, was $230 million.
- The revenue generated by iGO for the Ontario government is at least $145 million per year.
- In fiscal year 2022-2023, iGaming Ontario’s first year of operation, Ontario Lottery and Gaming (OLG) revenue from online gaming increased by 31%.
- For any government, the sum of $145 million ($96 million iGO and $49 million GST) is considerable revenue, bearing in mind that this is new revenue and not additional taxation of taxpayers.
The Coalition is offering the Quebec government a concrete solution to counter the impact of the budget deficit, and to implement a model that is unique to Québec with the potential to generate economic benefits similar to those in Ontario. At a time when the Minister of Finance is asking Crown corporations for optimization efforts totaling $1 billion, the revenues generated by a regulatory model would enable the government to invest in key services and sectors of the Quebec economy, as well as in the promotion of responsible gaming.
“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. “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.”
About the Québec Online Gaming Coalition
The Québec Online Gaming Coalition is an industry-led organization that brings together the leading online gaming operators, offering a variety of services from sports betting to online casinos. The Coalition was launched in May 2023 to call on the Québec government to modernize the current system by establishing a licensing and tax system and creating an independent regulatory body to oversee the gaming sector in Québec. By doing so, the Coalition wishes to help foster a responsible and safe environment that protects consumers.
Contact: Alexandre Lessard-Martin, Tel: (514) 805-1425, Email: alexandre.lessard-martin@coalitionjeuligneqc.ca
Website: coalitionjeuligneqc.ca