Ontario contributed $2.7bn in GDP in second year of regulated market
The Canadian province has improved in every key metric during the second year since it formed a regulated igaming market, as shown by Deloitte's latest findings
A new report from accountancy firm Deloitte has revealed that Ontario’s igaming market contributed $2.7bn in GDP between April 2023 and April 2024.
The report, published this week, also noted $1.3bn of that headline figure contributed to just shy of 15,000 full-time equivalent (FTE) positions that were sustained as a result of Ontario’s igaming sector.
The report goes into greater detail in regard to the FTE positions, revealing around 2,675 of them came within the province of Ontario, with the roles boasting an average compensation of $122,500 – 60% higher than the average compensation rate per job in the province of $76,500.
Alongside that, operators within Ontario also provided $790m in provincial government revenue as well as a further $75m in municipal government revenue and $380m for the federal government.
Deloitte’s report explains that $955m of that topline GDP figure was directly contributed, with $1.3bn indirectly contributed, and the remaining $470m coming in the form of an induced contribution.
Induced contribution is defined as the result of wages and salaries spent by licensed igaming operator employees or indirect supplier employees supported by the industry’s demand for goods and services.
In terms of employment, 2,675 jobs were created as a direct result of Ontario’s igaming market, with a further 9,295 coming indirectly and 2,965 in induced contributions.
Approximately 7.6 FTE positions were sustained in Ontario for every $1m spent by operators, while $1.4 of economic activity was added to the province’s economy for every dollar spent by operators in operating and capital expenditures.
Licensed operator expenditure amounted to $1.9bn at the conclusion of the second year of Ontario’s regulated market.
Deloitte’s report was commissioned by iGaming Ontario to analyze the findings from the second year of the province’s regulated market and the organisation’s board chair Heidi Reinhart has heralded its impact two years on.
“This report puts Ontario’s igaming market government revenue contribution at over $2bn since it launched,” she explained. “And with job contribution up by 24% from its first year, the benefits to Ontarians are significant.”
Reinhart’s sentiment was shared by Ontario Attorney General Doug Downey, who praised the province as a leader in the igaming industry.
Downey said: “Our made-in-Ontario igaming sector is being recognized internationally for its success as a leader in this space. Working together with our partners and industry, we will continue to drive innovation and deliver robust player protections, all while displacing the unregulated market.
“Our igaming sector is not only a job creator here in Ontario but it shows the world our ongoing commitment to building a sustainable and responsible igaming industry.”
Year two’s findings show a stark improvement in comparison to the first 12 month’s analysis, with an estimated GDP contribution increase of 70% this time around, rising from year one’s figure of $1.6bn.
Labor income saw a 45% rise from $905m in year one to an impressive $1.3bn in the second year.
Employment also rose 24% in year two, with year one’s contribution to employment amassing 12,070 FTE positions, below the more recent total of 14,935.