Report on initial impact of iGaming Ontario on gambling markets
The newly introduced AGCO license and iGaming Ontario regulator may reduce registering players, but they will be more confident with deposits.
CasinoBonusCA has investigated the first effects of the new piece of accreditation from the Alcohol and Gaming Commission of Ontario.
Following our market-wide research, we have seen changes in revenues for online casinos, customer behaviour and marketing dynamics.
We have identified two main trends following the introduction of the new subsidiary of AGCO and sweeping legal changes introduced by the AGCO license.
All presented facts and data reflect the current statistics. Industry trends may change in the future. Whenever we observe relevant modifications to our presented information, we will update our content to reflect the updated state of events.
- The AGCO license reduced newly depositing players by 40%
- AGCO Ontario license holders experienced a 15% player deposit increase
- What is iGaming Ontario?
- What is the Alcohol and Gaming Commission of Ontario?
- What does the Alcohol and Gaming Commission of Ontario do?
- The future of the industry with iGaming Ontario
The AGCO license reduced newly depositing players by 40%
The first observable trend was a 40% decrease in registering customers that perform a deposit in the new market functioning under iGaming Ontario.
We can speculate that the net volume decrease in Canadians accessing and actively participating on platforms may be due to new marketing regulations. These limits on advertisements are some of the strictest globally.
How did we compute this?
We have used our extensive lists of Canadian online casinos to check customer rates accessing these platforms.
Our casino reviews and market assessments in Canada have been ongoing for several years. Thus, we can confidently spot trends, both at a platform level and across the national industry.
Since we cover legally functioning platforms that fully adhere to the current legal framework in Canada, we can extrapolate the effects of recent changes onto the market as a whole.
AGCO Ontario license holders experienced a 15% player deposit increase
The information and observations you will read come from our sources. They reflect the gambling sector that we observe and have access to. While it may not encompass the entire Canadian industry, we deem them relevant for you as a gambler.
While the numbers of depositors for AGCO license holders suffered a net decrease, the total sum of performed deposits was 15% higher than previously.
This fact may indicate the silver lining regarding iGaming Ontario’s introduction and new legislation from its parent organisation, the Alcohol and Gaming Commission of Ontario (AGCO).
There is more good news for the Ontarian market.
Visitors were 1.5 times more likely to deposit
Fewer gamblers reached platforms with an AGCO license. However, the ones that stayed were 1.5 times likelier to actually perform a transaction.
This closely mirrors the 15% player payments total and may indicate a change in attitudes for Canadian gamblers.
Operator conversion rates doubled with the AGCO license
Beyond deposits, we could also spot a doubling in the conversion rate for AGCO Ontario operating casinos.
How profitable is the gambling industry now?
The Canadian gambling industry earned a revenue of $1.2 billion in 2021, before the introduction of iGaming Ontario.
Out of the whole sum, an estimated $500 million comes exclusively from the Ontarian market.
What revenues can we expect in the future?
Considering the first trends observable for AGCO license holders, we can expect net revenues to reach $1.8 billion, assuming the 15% increase in total deposits.
On a provincial level, the AGCO Ontario regulated market reached $750 million following the legislative changes.
The figures may indicate that iGaming Ontario will generate a more lucrative market, along with extended safety for gamblers and better marketing practices.
There is a caveat. Judging by available data, one definitive area of activity faces the most losses.
Third-party marketer rates decreased by 40% following iGaming Ontario
It may seem that the recent changes to the legislation of the Alcohol and Gaming Commission of Ontario may negatively affect casino audit database activities.
Third-party independent reviewers may face an overall decrease in conversion rates of up to 40%. This entails that fewer gamblers will access Canadian casinos from these sources following the introduction of the AGCO license and iGaming Ontario.
This trend seems to signal a similar change in attitude for gamblers. In the future, it may be the case that AGCO Ontario license holders will be trustworthy enough not to require third-party auditing and quality assurance.
How did we find out?
We fall in the same market sector as third-party marketers and auditors. The sole difference is that CasinoBonusCA aims to review and curate the Canadian online casino market for the player’s benefit.
The data we presented is a reflection of our platform’s activity. However, our approach is quite objective and less advertisement-oriented than other competitors. Thus, the 40% conversion decrease may be a conservative figure.
What is the Alcohol and Gaming Commission of Ontario?
iGaming Ontario is a subsidiary of the Alcohol and Gaming Commission of Ontario that regulates the online gambling market.
The agency also aims to introduce new standards for operators, both upholding and evolving the scope of the new AGCO license.
In short, with iGaming Ontario, the Candian province has inaugurated its regulated online market for casinos.
What does the Alcohol and Gaming Commission of Ontario do?
The AGCO is the official regulator responsible for alcohol, gaming, horse racing, and cannabis retail sectors.
While it collectively deals with all stated market sectors, there are several AGCO Ontario subdivisions regulating each retail class.
iGaming Ontario is the newest subsidiary created to exclusively address online gambling within the Canadian province.
What does the Alcohol and Gaming Commission of Ontario do?
The AGCO acts as an official regulator for selected retail sectors. The agency passes legislation and sees that all active operators and retailers adhere to it.
In the gambling context, the Alcohol and Gaming Commission of Ontario oversees both online services and brick and mortar casinos.
With the introduction of the iGaming subsidiary, AGCO currently reviews operators and can provide accreditation if they wish to function within the province. Previously, there was no AGCO license, and offshore gambling sites could operate with various accreditation types.
However, given the current established framework, it is only AGCO Ontario license holders that can provide online gambling to residents.
The future of the industry with iGaming Ontario
Given the trends following the introduction of the AGCO license, we can formulate educated guesses regarding the future of Ontarian and Canadian gambling.
More direct customers for AGCO Ontario licensees
It seems that the policies of iGaming Ontario result in better revenues for operators and poor conversion rates for third-party auditors.
With limits on advertising practices, we may see an industry where gamblers directly approach platforms without an intermediary.
The AGCO license may produce better revenues for operators
The recent increase in customer deposits, even combined with smaller numbers of joining users, spell out higher profits for casinos.
Even by conservative estimates and taking into account the data limitations, the success of AGCO Ontario licensed platforms is undeniable. The effect is observable on a national level, manifesting well beyond provincial bounds.
AGCO Ontario casinos are now 2 times as likely to keep customers
Customer attitudes and behaviours are similarly shifting thanks to the AGCO license.
While fewer gamblers actually arrive at gambling platforms, the likelihood of a visiting customer making an account doubled. New users were also 1.5 times more likely to add funds.
We can expect the trend to stick and gain momentum. AGCO Ontario operating gambling websites have all the indicators of a lucrative sector of activity.
Third-party marketers were most affected by iGaming Ontario
We have yet to see the staying capacity of third-party auditors. While an initial decrease may not cause concern, it can indicate the beginning of a damming trend.
We cannot expect all reviewers to disappear over the night. Naturally, we can suppose the platforms that heavily hinged on outright marketing to be most affected.
The Canadian customer can expect more objective, independent audit platforms to crop up in the near future.
The business practices are set to shift for the foreseeable future. A new direction could depend on exclusive casino bonuses, informative content, and better curation for the market.
The information communicated by CasinoBonusCA is independently collected objective data valid on the extensive lists of online casinos we have covered.
We could compute the comparative trends for the market before and after the iGaming Ontario launch and the introduction of the AGCO license, thanks to our extensive experience in the Canadian market and comprehensive data collection policy.
While we understand the limitations of our published content, we have ensured the relevance and reliability of stated figures. Our readers should understand the limits of our study.
Nonetheless, given the contextualisation, we can carefully extrapolate and formulate data-backed speculation regarding the regional and national online gambling market.
Changes may occur, both with the activity of iGaming Ontario and AGCO license policies. We will modify and update our information as soon as we observe any trend modifications.