Despite Ontario's regulated iGaming market, a significant portion of online gambling in Canada remains within the grey market, according to an article from Canadian Gaming Business.

While Ontario now boasts over 50 licensed operators, many of whom were already well-known before the market's launch in April 2022, unlicensed operators persist. This issue extends beyond Ontario. In other provinces where lottery corporations control online gambling, officials acknowledge losing revenue to these unlicensed, offshore providers.

From the article:

On balance, you’d have to say the first two years of the province’s market were hugely successful in this regard. iGaming Ontario (iGO) vaunted an 86% channelization rate as of April 2024 and has publicly outlined that its goal is to achieve 90% within five years. The H2 data provided to CGB suggests that, including the Ontario Lottery and Gaming Corporation’s (OLG) operations, the province may already be thereabouts.

Per H2, as of the fiscal year ending March 2024 (FY24), total gross win across online betting and gaming in Ontario was $3.17 billion, of which $2.96 billion came through regulated sites including OLG’s platforms. That would suggest 93% of Ontario online gaming is regulated, up from what H2 data says was 83% in FY23.

H2 projects that rate will be 95% in FY25. Pre-regulation, offshore gambling made up more like 75%, although, of course, the total market itself was far smaller ($1.02 billion GGR in FY21 vs. $2.27 billion in FY23 and $3.17 billion in FY24).

H2’s data suggests that, accounting for the unregulated share, OLG holds around 16% of Ontario’s online gambling market, not including lottery. As commercial operators’ pooled market share increased from 63% to 77% from FY23 to FY24, the crown corporation’s slice thinned from 20% to 16%, although not to the same extent as the grey market, which fell from 17% to 7%.
Read more here: https://www.canadiangamingbusiness.c...ulated-gaming/