Canada
PlayCanada: Online Casino Revenue Will Dwarf Online Sportsbooks
Online casino betting drove 153% more operator revenue and 339% more in tax revenue than sports betting last year in U.S. markets where both are legal, according to a recent analysis by PlayCanada.com, which tracks the fledgling Canadian gaming market. A similar revenue gap will likely be coming to Ontario, too, as the province prepares to open the market to private online sportsbooks and launch online casino gambling on April 4.
“Sports betting gets more attention, but it will be online casinos that deliver the truly eye-popping numbers,” said Robyn McNeil, lead analyst for PlayCanada.com. “In the U.S. states where online casino gambling has been legalized and regulated, online casino revenue dwarfs online sports betting revenue.”
Ontario plans to open to private online casino and sportsbook operators on April 4. That will make the province the sixth jurisdiction in Canada and the U.S. to legalize and regulate both online casino gaming and online sports betting, joining New Jersey, Pennsylvania, Michigan, West Virginia, and Connecticut in the United States.
When Ontario does launch, it can expect that online casinos will grab a much larger share in revenue.
In 2021, online casinos in New Jersey, Pennsylvania, Michigan, and West Virginia produced:
- (U.S.) $3.8 billion in gross operator revenue. By contrast, online sports betting operators produced (U.S.)$1.5 billion.
- (U.S.)$976.8 million in state and local tax revenue. Meanwhile, sportsbooks produced (U.S.)$222.4 million in state and local taxes.
The $3.8 billion in casino revenue in 2021 in those four states was more than the $3.6 billion in revenue that all U.S. online sportsbooks generated in the same year. Sports betting was legal in five times as many states last year.
Such a chasm is why operators known best for sports betting, including DraftKings and FanDuel, have joined other major North American brands, such as BetMGM, in investing heavily in their online casino products.
“Online casinos are not only more profitable than sportsbooks, but they are also less subject to the seasonal ebbs and flows that affect sports betting,” said Eric Ramsey, lead data analyst for the Play network of sites that includes PlayCanada.com and PlayOntario.com. “In the U.S., revenue from online casino betting has consistently grown month over month, and has done so for years in even the most established markets.”
Michigan, which allows online sportsbook operators to use promotional credits to offset their tax obligation, showed the greatest discrepancy in 2021. Michigan’s online casinos produced (U.S.)$1.3 billion in operator revenue, which was 281% more than the (U.S.)$292.2 million that sportsbooks generated. The online casino revenue led to a (U.S.)$279.3 million tax injection into state and local coffers, 2,364% more than the $11.3 million contribution from sportsbooks.
“The disparity in the U.S. between online casino and sportsbook revenue is instructive for Canadian regulators,” Ramsey said. “Regulators should take care in creating rules around these promotional credits, which have really sapped the tax potential from sportsbooks in some U.S. states like Michigan.”
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BCLC
Be #GiftSmart: Scratch the Idea of Gifting Scratch & Win Tickets to Kids
BCLC reminds adults to gift responsibly this holiday season
With the holiday season in full swing, BCLC is reminding British Columbians to gift responsibly and scratch lottery products from their shopping lists for kids.
“Scratch & Win tickets can make great stocking stuffers for the adults in your life, but they’re not for kids,” said Ryan McCarthy, BCLC’s Director of Player Health. “The research shows that children who have early encounters with gambling are four times more likely to develop riskier gambling behaviour as they grow up. While people are out shopping for those last-minute gifts, BCLC wants adults to be aware of the potential risks associated with gifting lottery products to children and to consider safer alternatives.”
While Scratch & Win tickets are among the most common ways kids can be introduced to gambling, children are increasingly exposed to various online forms, such as gambling streams.
“With the convergence of gaming and gambling, youth are becoming more exposed to gambling content in online spaces like streaming sites, where creators are able to live-stream their own gambling, usually while playing online slots and instant games,” said Dr. Luke Clark, Director for Gambling Research at UBC. “Our research at the UBC Centre for Gambling shows that a higher frequency of watching online gambling streams is associated with a more positive attitude towards gambling and a high intention to gamble in the future.”
In B.C., it is illegal to sell lottery products to anyone under the age of 19 and BCLC encourages adults to have conversations with the kids in their lives about the risks associated with gambling.
“Open and honest conversations are crucial when it comes to navigating childhood exposure to gambling,” said McCarthy, who shared the following tips to adults:
- Monitor for gambling-related lifestyle changes. For example, developing a positive attitude towards gambling or a preoccupation with video games or streaming sites.
- Be a positive role model. Exhibit safer gambling behaviour and talk about the risks.
- Limit exposure. Monitor kids’ online activities and discourage engagement with gambling content. Explain how gambling is based on chance.
AGCO
Jackpot Digital Receives Approval from AGCO as a Registered Gaming Supplier
Jackpot Digital Inc., a leading provider of innovative dealerless electronic poker gaming solutions, has announced that the Alcohol and Gaming Commission of Ontario (AGCO) has approved the Company to be licensed as a registered Gaming Related-Supplier (the “Supplier License”) under the Gaming Control Act in the Province of Ontario.
This significant achievement allows Jackpot Digital to enter one of the most dynamic and rapidly growing regulated gaming markets in North America. The Supplier License authorizes Jackpot Digital to supply its electronic table games to Ontario’s gaming venues, including casinos and other regulated gaming facilities.
Jackpot Digital’s flagship product, the Jackpot Blitz electronic table game system, offers a modern, dealerless, player-friendly solution that integrates traditional multiplayer poker games with cutting-edge digital technology. The Supplier License will enable the Company to offer its innovative gaming solutions to operators throughout Ontario, driving new revenue opportunities and enhancing player experiences.
“Receiving AGCO’s approval is a major milestone. This approval provides us with the opportunity to offer our top-tier electronic gaming systems to operators throughout all of Ontario, positioning us for further growth in one of the world’s most robust gaming markets. We are excited to bring our innovative products to Ontario’s gaming community and continue our commitment to providing exciting, technology-driven entertainment experiences,” said Jake Kalpakian, CEO of Jackpot Digital.
Canada
Play’n GO announces partnership with Canadian operator PointsBet
Play’n GO, the world’s leading casino entertainment provider, has announced further expansion of its Canadian operations via a partnership with leading operator PointsBet in the province of Ontario.
The Swedish-founded gaming giant’s games will now be available to PointsBet players in the Canadian province, meaning classic titles such as Book of Dead, Rich Wilde and the Tome of Madness, and Reactoonz will now be available on the PointsBet platform.
The province of Ontario regulated online casino gaming in 2022, which saw Play’n GO enter the Canadian market for the first time. The company expanded into the province of Quebec earlier this year, and, as of June 2024, is also a proud member of the Canadian Gaming Association.
Magnus Olsson, Chief Commercial Officer at Play’n GO, commented, “Back in 2022, I said that “North America is right at the top of Play’n GO’s priority list, and Ontario is just the first step we plan to take”. This partnership with PointsBet shows we have yet to take our foot off the gas. We’ve proudly watched our games become instant hits in our two and a half years in the Ontarian region, and we have no plans to slow down any time soon.
“It’s exciting to team up with a fellow Canadian Gaming Association member in PointsBet, and we can confidently say that we are working towards the same goal of a safe, regulated industry that is focused on player entertainment. We’re looking forward to working closely together following this milestone announcement.”
Scott Vanderwel, Chief Executive Officer at PointsBet, shared “Play’n GO has built a strong reputation for delivering high-quality game content, and we’re thrilled to bring their titles to our platform. At PointsBet, our focus is on providing a safe and engaging entertainment experience for our players, and it’s clear that Play’n GO aligns with those values. Canadian casino enthusiasts recognize PointsBet as a trusted leader in iGaming, and this collaboration further enhances the exceptional experience we offer.”
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