Canadas most populated province, Ontario, which represents nearly 40% of the country’s inhabitants, has been a captivating prospect as the initial regulated internet gambling market to open to non-monopoly operators. Geoffrey Smorong offers an examination of the first two months of operation for iGB Affiliate.
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Ontario Internet Gaming’s Early Harvest
On April 4th, Canada’s first regulated internet gambling market to open to private operators officially went live, with Ontario officially opening its doors to non-government operated online casinos and sports wagering.
With a population of nearly 15 million, Ontario is one of the largest regulated online gambling new markets in North America. According to VIXIO, the Ontario internet gambling market is potentially a sizable market financially, with total revenue projected to reach $989 million CAD by the end of this year and $1.86 billion CAD by 2026.
Now that a few months have passed, it’s an ideal time to evaluate the launch of the Ontario internet gambling market expansion.
Early Participation
The Ontario internet gambling market has seen significant participation so far, with 15 operators offering 24 different brands that have been licensed by the provincial regulator, iGaming Ontario (iGO) and the Alcohol and Gaming Commission of Ontario (AGCO).
Moreover, a recent survey by GBG, conducted among iGO members, revealed that more than 70 operators are seeking licenses. Regulatory bodies have also declared that they will not restrict the number of licenses issued.
Since the release of regulations by AGCO and iGO, numerous prominent US operators have expanded their affiliate marketing programs into Ontario. The market remains highly competitive. These include well-known brands such as FanDuel, PointsBet, DraftKings, Caesars Interactive, and Bet365.
Furthermore, the Ontario Lottery and Gaming Corporation (OLG), the province’s lottery agency and the sole regulated online gambling operator in Ontario prior to April, recently introduced its affiliate program in the province. This makes it the first provincial lottery agency in Canada to establish an affiliate channel. This is encouraging news for affiliates, as the influx of operators provides them with numerous opportunities to forge new partnerships, leading to substantial revenue prospects.
**Promotional Considerations**
As with any newly established market, it is crucial to comprehend the implemented regulations to prevent unnecessary complications. Operators and affiliates cannot engage in marketing practices that are common just a short distance south in Michigan.
Although Ontario permits the promotion of online gambling services, the Alcohol and Gaming Commission of Ontario (AGCO) enforces rigorous limitations on advertising and promotional materials. As per AGCO rules, advertising and promotional materials that advertise gambling incentives, bonuses, and reward points are forbidden except on the operator’s gambling website and through direct advertising and marketing (after gaining permission from active players). This stands in stark contrast to the New York market, where operators and partners are free to promote such offers.
The AGCO has already levied penalties on several instances of alleged violations of advertising and inducement rules, imposing fines exceeding $30,000 on numerous brands.
Another notable distinction in Ontario is that operators bear the ultimate responsibility for advertising, necessitating that they ensure affiliates produce marketing materials that adhere to the guidelines set forth by the AGCO.
We had a conversation with Anton Hedlund, Client Manager at Compary, an affiliate that has entered the Ontario market and aims to assist players in making more informed decisions through data, to comprehend how this difference affects affiliates and operators. Hedlund remarked, “We haven’t encountered brands seeking to enter the market who have expressed complaints. Everyone is cognizant of the situation and acknowledges that affiliates and operators must collaborate to adapt to the regulations.”
Affiliate Perspective
The province of Ontario presents a thrilling new player base, devoid of operator limitations, making it an ideal moment to become a partner. Operators, bearing the brunt of risk, seek collaborators with marketing strategies that are unimpeachable in the eyes of regulators.
The regulatory framework governing Ontario’s gambling industry has been a source of debate, but it also offers advantages for affiliates. While the relatively stringent marketing guidelines may present obstacles, Hedlund notes, “This also ensures responsible gambling practices and secure financial transactions, safeguarding users.”
In the coming months, an increasing number of operators are expected to launch, providing affiliates with a remarkable opportunity to forge connections with fresh brands and deliver top-notch content to their audience.
Ontario operators bear the responsibility for advertising adherence, alleviating the pressure on affiliates. Nonetheless, affiliates must ensure strict compliance with regulations to maintain harmonious relationships with operators.
Conversely, one of the challenges faced by affiliates is the Know Your Customer (KYC) verification process, which can hinder users from experiencing a smooth sign-up and registration process with brands.
Hedlund remarks, “We have received feedback from players regarding KYC policies.”
Though intended to safeguard participants, these regulations have also sparked some dissatisfaction among players as they are required to furnish all the essential details to the administrators.
He further stated: “In general, users desire to engage with products that are swift and effective. Since KYC policies impede the process, some players are hesitant to supply all the required information, and we have observed that certain operators exhibit lower conversion rates compared to others with streamlined registration procedures.”
**Essential Points**
With Ontario comprising nearly 40% of Canada’s total population, it is poised to be a compelling market for operators and partners. Following months of rivalry, the pursuit to connect with this vast audience continues. Operators are pouring in, presenting substantial opportunities for partners. By adhering to the guidelines established by the government gaming authority, fostering robust relationships with operators, and emphasizing the favorable aspects of Ontario’s expanding online gambling market, partners will ensure they capitalize on this burgeoning domain.
Geoffrey Smorong holds the position of Vice President of Operations for Income Access at Paysafe. He is a seasoned leader with a decade of experience in online gambling and affiliate management, having been a pivotal contributor to Income Access since joining the team as a Client Manager in 2012.
Don’t miss our session on Ontario on the inaugural day of iGB Live! in Amsterdam next month.
A gathering of specialists will convene on July 6th at 12:50 PM to discuss how businesses in the gaming sector can glean insights from regions where incentives are restricted. Following this, at 2:20 PM, Receptional, a leading digital marketing agency, will deliver a presentation featuring practical guidance derived from their initial investigations into sports wagering. Further details regarding the event can be located here, and registration can be completed here.
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