Ontario Sets New Online Gambling Record Despite Revenue Decline
Ontario’s regulated online gaming market recorded an all-time high for wagering in September, even as overall revenue slipped slightly.
LISTEN TO THIS ARTICLE:iGaming Ontario’s latest monthly market performance report shows that online gamblers in the Canadian province wagered a record CAD 8.5 billion in the third quarter, a 5% increase over August’s CAD 8.14 billion. The surge marks the second consecutive month in which the province set a new handle record, underscoring continued growth in player activity since the market opened to private operators.
Despite the rising wager totals, total non-adjusted gross gaming revenue (NAGGR) edged down 2% to CAD 329.4 million for the period. The discrepancy between handle and revenue points to shifting player behaviors and promotional dynamics across verticals. Active player accounts also climbed, hitting nearly 1.2 million – a quarterly record and a 15% month-on-month rise. Average revenue per active account was reported at CAD 282, a decline of 15% from the previous month, suggesting higher participation but lower yield per player.
Online casinos in Ontario remain the dominant vertical, accounting for roughly 86% of total handle. Casino games generated about CAD 7.3 billion of wagering volume, a modest 2% increase month-on-month. The vertical also produced the bulk of revenue, delivering NAGGR of CAD 277.8 million – up 4% and representing 84% of total online revenue.
Sportsbooks posted the most dramatic growth in wagering, with handle jumping 39% to roughly CAD 1 billion in September, claiming a 12% share of overall handle. However, sportsbook NAGGR fell sharply by 23% to CAD 46.5 million, indicating that promotions, free bets and lower margins weighed heavily on operator receipts during the period.
P2P poker showed a more muted performance: players staked CAD 144 million in the month, down 4% month-on-month, and the vertical contributed CAD 5.1 million in NAGGR – a 25% drop – maintaining a roughly 2% share in both handle and revenue.
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What Ontario’s Record Handle Means for Operators
Industry observers say the numbers reflect a maturing, highly promotional market where volume growth does not always translate into higher operator profit. "The record handle is a positive sign of demand, but the falling revenue metrics underscore the competitive pricing and bonus strategies operators are using to recruit and retain customers", said Laura Thompson, senior analyst at PlayStats Consulting. "Operators appear willing to sacrifice short-term margin for scale, particularly in sports during major event windows, which inflates handle but compresses NAGGR. That dynamic is likely to continue as brands compete for share in Ontario’s lucrative but crowded market."
Regulatory and public policy considerations could follow. The Alcohol and Gaming Commission of Ontario (AGCO) oversees licensing and compliance for commercial operators in the province, and may monitor whether aggressive promotional activity raises concerns about responsible gambling or consumer protection. "Regulators will be watching engagement patterns closely – rising account counts are good for the market, but they also increase the onus on operators to deliver strong responsible gambling safeguards", Thompson added.
Operators themselves are likely to point to the seasonal spike in sports interest – notably gridiron and European football schedules – as a driver of the sportsbook handle. At the same time, casino games continue to anchor revenue performance, providing a steadier yield despite smaller month-to-month growth in wagering volume.
Looking ahead, market participants expect continued handle growth interspersed with revenue volatility as promotional mixes evolve and player behaviors shift. iGaming Ontario’s report highlights both the scale of the province’s online market and the commercial tensions that come with rapid expansion: increasing engagement and handle, but downward pressure on per-player revenue and short-term operator margins.
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