OLG Chief Gaming Officer: We’re All Benefitting From Private Operator Online Gambling

• OLG releases Fiscal 2025-28 business plan
• Revenue growth projected for land-based and gambling sectors through 2028

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The ongoing discussion about how an igaming market filled with private sector operators is advantageous for lottery crown corporations has been bolstered by the implementation of the Ontario Lottery and Gaming Corporation’s (OLG’s) fiscal 2025-28 business plan.

Over $1 Billion in Revenue by 2027-28?

The adage “a rising tide lifts all boats” aptly applies here, illustrating that general economic advancements can benefit all stakeholders involved.

Projected Growth of Gambling Revenues

The OLG report indicates that land-based gambling is forecasted to grow by 7%, reaching a budgeted $4.65 billion in fiscal year 2024-25.

For the burgeoning online gambling sector, OLG predicts a remarkable upward trajectory:

• FY 2025-26: $5.01 billion
• FY 2026-27: $5.26 billion
• FY 2027-28: $5.45 billion

The online gaming division is anticipated to perform even better, jumping from CAD $745 million in FY 2023-24 to projections of:

• FY 2025-25: CAD $819 million
• FY 2025-26: CAD $895 million
• FY 2026-27: CAD $971 million
• FY 2027-28: CAD $1.049 billion

Grey Market Operators Forced Out

Troy Ross, President of TRM Public Affairs, commented, “It’s amazing to see year after year how OLG keeps setting new records. Our data from three years shows that a regulatory regime can successfully channel almost 90% of play, disproving previous concerns regarding potential market cannibalization.”

Currently, OLG captures around 20-22% of the market share in Ontario, mirroring the estimated market capture for lotteries nationwide. Following the launch of the new regulatory regime in April 2022, many grey market operators exited due to strict licensing criteria.

49 Licensed Operators

“Most operators preferred compliance with our regulator, the Alcohol and Gaming Commission of Ontario,” said Ross. Those operators have since aligned with either OLG or one of the 49 licensed operators.

According to OLG Chief Gaming Officer, Dave Pridmore, the competitive landscape has spurred OLG to innovate and enhance their offerings. “Our ongoing success at OLG.ca is a testament to our customer-focused approach towards digital operations, aimed at continuously elevating the user experience,” Pridmore noted.

Net Profit to Province

OLG is dedicated to launching innovative products to enhance user experience on OLG.ca. Amongst ongoing offerings, they have introduced Red Panda Tails of Wealth – the first digital slot game tailored with accessible features for players with disabilities.

Legalizing the online gaming market in Ontario has standardized regulations across all operators, fostering a safer gaming environment. All digital operators will soon provide a centralized self-exclusion program to support players in needing a break from gambling.

Net profits generated by OLG are reinvested into the province, aiding community charities, municipalities, and First Nations. The net profit for the province in the fiscal year 2024-25 is projected to surpass CAD $2.6 billion and is anticipated to ascend to CAD $3.2 billion by the end of 2027-28.