Report: Ontario regulated market GDP contribution to hit C$4.7bn by 2031/2
New data published by iGaming Ontario suggests 22,000 jobs will be created in sector over next 10 years with province receiving $2.1bn in annual revenue
A new report authored by accountancy Deloitte and commissioned by iGaming Ontario has claimed the Ontario regulated market could contribute as much as C$4.7bn to the province’s gross domestic product (GDP) by 2031/2.
The report estimates that by 2031-32, the industry could generate as many as 22,000 jobs, contributing $2.1bn in revenue annually to the region.
In respect of today’s market, Deloitte’s data suggests the industry is already supporting more than 12,000 full-time equivalent jobs and contributing almost C$1.6bn to Ontario’s GDP.
Of these, employees receive an average of C$103,000 a year in compensation, which is 41% higher than average salaries across all industries in the province.
The GDP per full-time equivalent job in the Ontario igaming market was about C$171,000 in 2022-23. The report projects this figure to grow to C$813,000 in GDP per job in 2031-32.
It estimates in 2022-23, approximately C$1.14 of GDP was added to the Ontario economy for every dollar spent by igaming operators through either operational or capital expenditure. This figure is expected to increase to C$1.78 of GDP for every dollar spent in 2031-2032.
The report only includes the potential economic contribution of the igaming industry as conducted and managed by iGaming Ontario and not any potential economic benefits associated with igaming offered by the Ontario Lottery and Gaming Corporation.
“The igaming industry also has the potential to benefit from Ontario’s well-established technology clusters, which have been identified as a priority sector for investment attraction in the province,” the report states.
“In addition to leveraging these existing clusters, the igaming industry also plays a vital role in nurturing and expanding them by acting as a host sub-ecosystem for top talent.
“This adds further momentum to Ontario’s already strong position in this space, making it an attractive destination for businesses and investors alike,” it adds.
As part of its mandate in the report, Deloitte engaged with a number of stakeholders, with conversations highlighting the importance of responsible gambling (RG) and the creation of a responsible gambling culture in supporting this economic and social growth.
Stakeholders suggested a centralized self-exclusion platform for the province, building out a set of data on player behavior with an RG slant and the application of technology to the RG objective as being critical assets.
“By prioritizing safe growth, Ontario can foster sustainable growth and realize the benefits outlined in this study. Moreover, by implementing best-in-class regulations that balance consumer protection and commercial opportunity could enhance Ontario’s comparative advantage in the igaming industry.
“Safe growth will promote sustainable growth and realization of the benefits presented throughout this study,” Deloitte added.
Industry stakeholders in the province wasted no time in lauding the current and potential future contribution of igaming and online betting to Ontario, with representatives from iGaming Ontario and the Ontario Attorney General’s office weighing in.
“Today’s report reveals that the newly regulated igaming market in Ontario is delivering real benefits to every resident of Ontario, whether they play or not,” said Dave Forestell, chair of iGaming Ontario in a statement released with the report.
“The igaming industry’s potential to be a real economic driver in Ontario and, together, we can help realize that goal of leading the world’s best gaming market right here at home,” Forestell added.
Ontario Attorney General Doug Downey echoed much of Forestell’s remarks, stressing the benefits of regulation in supporting this aim.
“Over the past year, Ontario’s igaming market has been internationally recognized for creating a safe, legal and competitive landscape while supporting the province’s economy and displacing the existing unregulated market,” Downey said.
“By driving innovation, creating exciting new opportunities for workers and providing protection and choice for players, this made-in-Ontario market will remain a global leader in this sector,” he added.