When Ontario officially “turned on” legal online casinos on April 4, 2022, it did far more than open a new market. It reshaped how internet gambling works in Canada and built a model that other provinces continue to examine closely.
What had long been a shadowy grey market- where major operators and legacy casino brands quietly catered to Ontarians from offshore servers – was brought into a regulated, province-run system. The outcome? More options and safeguards for players, clearer standards for operators, and a vibrant, competitive market where the government-run OLG now competes directly with private heavyweights.
From Grey to Regulated: What Changed and Why It Matters
Before 2022, Ontarians were already playing online – but mostly on offshore sites. Canada’s Criminal Code only allows gambling that’s “conducted and managed” by a province, yet enforcement against foreign websites was limited, leaving a large legal grey zone. Ontario’s shift to regulation followed two key legal and policy changes that made a new framework possible:
- Bill C-218 (2021) removed the federal ban on single-event sports betting, letting provinces set their own rules. That was the last major barrier to building a modern, competitive market.
- Ontario’s new iGaming model introduced iGaming Ontario (iGO), a subsidiary of the Alcohol and Gaming Commission of Ontario (AGCO). Private operators can participate only by registering with the AGCO and signing an agreement with iGO – allowing the province to “conduct and manage” gaming in compliance with the Criminal Code. The OLG continues to run its own platform under the traditional Crown model.
Ontario also implemented a transition plan that guided grey-market operators into the regulated system without stranding players. That grace period ended on October 31, 2022, when Standard 1.22 came into effect, requiring any active offshore operator to either stop unregulated play or lose eligibility for licensing. This decisive move sped up the migration of well-known brands into the legal market.
A Bigger, Safer Market – By the Numbers
Ontario’s regulated iGaming industry has quickly become one of the largest in North America, and its growth shows no signs of slowing.
In its second full fiscal year (2023–24), iGO reported CA$63 billion in wagers and CA$2.4 billion in gaming revenue – a jump of more than 70% from its first year. Casino play dominated, generating about CA$51.7 billion in wagers and CA$1.8 billion in revenue.
By Q4, more than 1.3 million player accounts were active, with an average monthly spend of CA$263 per account.
As of October 14, 2025, iGO lists 50 licensed operators running 88 gaming sites – from sportsbooks and online casinos to poker rooms. The official directory of online bookmakers in Ontario – where players can verify any brand – underscores just how many former “grey” operators are now fully contracted and regulated.
What Players Gained
- Real consumer protections. The AGCO’s Registrar’s Standards require fair-tested games, secure systems, KYC/AML checks, and responsible gambling tools. Ontario also toughened its ad rules to curb youth appeal and aggressive promotions. These standards took effect at launch and have only grown stronger since.
- Safer, more responsible marketing. As of February 28, 2024, operators can’t feature active or retired athletes in ads (unless promoting responsible gambling) and must avoid celebrities who appeal to minors. Public ads for bonuses or inducements are generally banned – such offers can only appear on an operator’s website or via direct, consent-based messages. This change directly addressed the early flood of celebrity-driven campaigns.
- Transparent, legal choices. Ontario clearly distinguishes between the government’s OLG.ca and private operators under iGO’s model. Players can easily confirm who’s licensed through the official directory and choose accordingly.
What Operators Gained
- Legitimacy and scale. Regulation allowed major brands – like DraftKings, FanDuel, and SportsInteraction – to operate openly with compliant marketing, local partnerships, and mainstream payment options.
- A clear regulatory path. By registering with the AGCO and contracting with iGO, operators gained a dependable, legally sound route into Canada’s largest provincial market.
- A massive audience. With over 1.3 million active quarterly accounts and billions in wagers, Ontario’s player base is big enough to justify serious local investment in tech, payments, and customer experience – benefiting both international firms and homegrown startups.
The Flip Side: Challenges in a Maturing Market
- OLG vs. private operators. Ontario kept OLG.ca active, and despite the flood of private entrants, OLG maintains a strong foothold – around 16% market share as of 2024. That keeps competition sharp, with both sides pushing hard (within compliance limits) to win and retain customers.
- Advertising restrictions. The 2024 ad reforms forced operators to pivot creatively – away from celebrity-heavy, incentive-driven campaigns toward messages emphasizing brand integrity, product experience, and responsible play. The AGCO’s enforcement guidance leaves little room for error.
- Crowded competition. With 50 operators and 88 sites, Ontario’s market is packed. Casinos dominate total wagers, meaning brands compete fiercely on slot variety, live-dealer quality, and overall user experience. Sportsbooks face seasonal volatility – NFL, March Madness, and playoffs all swing margins – making smart bonusing and risk control essential.
- Evolving compliance landscape. Ontario’s Auditor General initially raised questions about the “conduct and manage” framework and the AGCO/iGO split. While the system has matured, operators are reminded that oversight remains active and adaptation is key.
Regulation Changed the Game – for Good
Ontario didn’t just copy Europe’s license-and-tax approach; it adapted it for Canada’s constitutional framework. iGO’s contracting model keeps the province firmly in control while enabling a modern, competitive ecosystem.
The October 2022 transition deadline proved critical—pushing most players from offshore to legal platforms where age checks, fund protections, and complaint processes exist.
The data speaks volumes: year-two wagers hit CA$63B and revenues CA$2.4B, both up over 70%. This scale has enabled better responsible gambling tools, secure payments, and robust anti-fraud systems—benefits the old grey market could never match.
What’s Next: Consolidation and “Regulatory Maturity”
By 2025, Ontario shifted from startup mode to stability. Enforcement is stricter, ad rules tighter, and standards continue to evolve alongside new products like live dealer games and novel bet types.
Legal observers describe this phase as regulatory maturity: the focus is now on integrity, transparency, and sustained compliance. Expect ongoing scrutiny of inducement practices, youth protection, and data reporting.
For operators, growth will increasingly depend on customer retention, product innovation, and responsible marketing – not just splashy brand campaigns.
Bottom Line
Ontario’s iGaming experiment shows that bringing a grey market into the light can work – when the framework is clear and incentives are aligned:
- Players get licensed, trustworthy sites; stronger protections; and marketing that respects boundaries.
- Operators gain legitimacy, media access, and a large, sustainable customer base.
- The province benefits from a growing, taxable digital sector while retaining OLG’s public role.
Ontario didn’t erase risk or competition – it redefined them. The new era rewards trust, compliance, and product quality as strategic advantages. In doing so, it’s laid the groundwork for how regulated betting in Canada could evolve.
Sources & Official References
- iGaming Ontario (iGO) – operator directory & market reports.
- AGCO – Registrar’s Standards, advertising and inducement rules, 2024 athlete-ad ban guidance, and Standard 1.22 transition policy.
- Government of Canada – Bill C-218: Safe and Regulated Sports Betting Act.
- Office of the Auditor General of Ontario – 2021 Internet Gaming report and governance overview.
