Quarter 2 Sports Betting Numbers in Ontario Remain Largely Unchanged

iGaming Ontario's Quarter 2 report is out, and it revealed somewhat stagnant activity in the province for the three-month period from July 1 to Sept. 30.

However, the summer reporting period is generally underwhelming, as only one of the four major North American sports is running throughout those months.

Despite somewhat flat earnings figures for Q2 compared to Q1 in Ontario, there's optimism among industry insiders that wagering activity in the province will see a nice uptick in Q3. The third quarter will feature NFL, NHL, and NBA action, as well as playoff baseball.

But Q2 wagering totals in Ontario did open some eyes when compared with the same three-month period in 2022, thanks to an impressive year-over-year 132% spike at Ontario's best sportsbooks.

$14.2 billion in wagers during Q2

iGaming Ontario revealed a healthy total of $14.2 billion in bets during Quarter 2 of 2023. That number represents just a $200,000 increase from Quarter 1's $14 billion.

Of note, Q2 concluded with a staggering 132% increase from the same period in 2022, when Ontario's online legal sports betting scene was in its relative infancy.

Betting on sports, Esports, props, and novelty bets, as well as exchange wagering, made up almost $1.9 billion of the $14.2 billion in total wagers, or roughly 13%.

Revenues dip quarter-to-quarter

Despite a slight increase in quarter-over-quarter casino gaming for Q, revenues actually fell, compared to the first quarter.

Sportsbook profits for Q2 came in at $540 million, a slight drop from $545 million in Q1. That number comes from what the report cites as "total cash wagers, including rake fees, tournament fees, and other fees, across all operators from July 1 to Sept. 30, 2023, minus player winnings derived from cash wagers and does not take into account operating costs or other liabilities."

However, just like the year-over-year betting activity number, revenues from the same period last year showed a major jump. Gaming revenues climbed 105% from the reporting period ranging from July 1 to Sept. 30 of 2022.

Roughly $118 million of the total gaming revenues, or about 22%, came from sports and Esports wagers.

Other relevant information from report

The handle and revenue figure laid out in the iGaming Ontario Q2 report came from 47 operators and 71 gaming websites across the province. Those numbers, like the financials, remained relatively stagnant from Quarter 1.

About 943,000 player accounts were active during the Q2 reporting period. Active players are defined in the report as "accounts with cash and/or promotional wagering activity during the time period and do not represent unique players as individuals may have accounts with multiple Operators."

The average monthly spend for active users was $191 in Quarter 2.

Casino gaming leads the way

Although sports betting activity at Canada's best sportsbooks increased both quarter-over-quarter and year-over-year in the Ontario market, it was casino gaming - which includes slots, live and computer-based table games, and peer-to-peer bingo - that was the true breadwinner for the gaming industry.

Casino gaming made up $11.9 billion of the overall $14.2-billion Q2 handle, which is about 84%. Such gaming was also responsible for about 75%, or about $407 million of the overall gaming revenue in the Ontario market during Q2.

Looking ahead

It is inevitable that we see a huge spike in wagering activity in the Ontario markets in Quarter 3, especially among the best sports betting sites in Canada. Last year, wagering activity in the province nearly doubled from Quarter 2 to Quarter 3.

Ontario’s legal gaming industry experienced quarter-over-quarter increases in all categories from Oct. 1 to Dec. 31 of 2022. More of the same can be expected this year.

Will wagering activity nearly double again from Q2 this year? Perhaps not, as the Ontario scene was in its relative infancy at this time last year and signing up new bettors at a rapid pace.

However, all eyes will be on Ontario to see if the growth momentum will continue in Canada’s only legalized online gambling jurisdiction.