Ontario's online gaming market launches, but some insiders and experts have concerns
CBC
The government of Ontario has officially launched its new online gaming market, including online casinos and esports betting sites, as of Monday.
iGaming Ontario (IGO), a subsidiary of the Alcohol and Gaming Commission of Ontario (AGCO), introduces new standards for gaming operators, according to a January news release.
The new market has some homegrown online gaming companies, like Toronto's Rivalry, celebrating what the future holds.
"Until now, we've been unable to legally offer a product, or offer a product at all, in this market," said Steven Salz, Rivalry's co-founder and CEO. "It's a net-new market for us and we have a bit of a home-court advantage."
But while online companies celebrate, some advocates are worrying what it all might mean for the province's brick-and-mortar casinos. At the same time, gambling addiction experts have expressed some concern about increased access to gaming.
Online gambling as a concept isn't new in Ontario. Industry figures estimate that Ontarians spend about $500 million a year on internet gambling, almost entirely with companies that operate outside of the province.
Previously, those outside sites weren't subject to any regulations. But now, private operators will need to register and pay tax in exchange for legal access to the province.
In addition to providing Ontario with a new revenue stream, the market is meant to protect Ontarians by offering a legal alternative to the existing "grey market" of online gaming options, says the province.
The new measures "will enable more responsible gaming, prevent underage access, and ensure compliance with applicable laws including anti-money laundering rules and regulations," according to a statement provided by the office of the province's attorney general.
Ontario is the first province in Canada to implement such a system, and some industry insiders have concerns.
In January, CBC News reported the new market could create a loss of $550 million in annual revenue for the province, for a total of $2.8 billion over the next five years.
That warning came in a report by a gambling industry consulting firm prepared for Great Canadian Gaming, the company with the largest share of Ontario's casino market.
Tony Rodio, Great Canadian Gaming's CEO, told CBC News it's unfair that iGaming operators will only be taxed 20 per cent of their earnings, compared to the 55 per cent brick-and-mortar casinos are taxed.
"This is the only state or province in North America where the iGaming operators have a tax advantage," he said.