Ontario Records Rise in Online Gambling Revenue, Says the Latest Report
However, the latest result, though significantly improved, is still far from the performance of the province’s two main market rivals.
Numbers Going Up
According to the 2018-19 report recently published by the Ontario Lottery and Gaming Corporation (OLG), the largest province in the country generated an overall revenue of C$8.3 billion, which represents a 6.1% increase when compared to the previous fiscal period. At the same time, the provincial monopoly’s net income went down by 0.6% to C$2.47 billion.
The report revealed that lottery operators were still the leading vertical, earning a record-breaking C$4.17 billion during the twelve-months period ended on March 31 – an improvement of 10.2% from the last year.
Land-based gaming also set a new record as its revenue grew by 1.6% to C$3.86 billion. This vertical includes 3 self-managed casinos and 23 video slots and casino venues contracted out to third parties. Charitable gaming saw its revenue improve by 6.3% to C$183 million.
PlayOLG website recorded around C$92 million in revenue, improving its last year’s results by 25.7%, which is almost the same growth rate the crown corporation reported back in 2017-18. Profits went up by a little over 30% to C$49.6 million due to an annual increase in costs of 20%.
Although OLG has a large market of more than 14 million residents, the provincial online gambling revenue is still far behind its main rivals in British Columbia and Quebec, which generated online revenue of C$149.8 million and C$105.4 million respectively. It should be noted that the PlayOLG website was launched in 2015, a couple of years after BCLC and Loto-Quebec made such a move. When it comes to the sales of the draw-ticket lottery, the performance of this vertical was included in the “lottery” segment.
Attracting More Customers
The good news for the monopoly is the rise in the number of active customers, which increased by 24.6% during 2018-19. New products – including new jackpots – as well as more aggressive marketing and promotional campaigns, have been cited as the main driving force behind this improvement.
Back in September last year, OLG announced it had signed a deal with Bede Gaming, under whose provisions the UK-based company was tasked with establishing OLG’s new digital foundation. However, the annual report didn’t provide any information on the timeline for the launch of the new digital platform.
OLG has yet to choose a service provider which will be given the task of enhancing the company’s sports betting offering – both retail, web and mobile channels. According to available sources, OLG will soon announce the name of its future partners.
Earlier this year, the new premier of Ontario surprisingly included plans to create a competitive (and legal) online gambling market in the province, even adding this plan of his to the new budget.
The latest report provided detailed information on these plans, stating the future online gambling offer would be different from the one offered by the monopoly’s online rival.