There were several questions about Ontario’s newly regulated iGaming industry last year. How will it work? Will players prefer regulated sites to grey market platforms? Will prominent international online gaming operators move into the province? How much revenue will be generated in the first year? Well, it’s safe to say that Ontario proved itself to be one of the biggest iGaming markets in North America.
45 operators. 76 gaming websites. 1.65 million active player accounts. $35.5 billion in total wagers which generated a total gaming revenue of $1.4 billion. Those are just some of the stats from the year 1 performance results for Ontario’s regulated iGaming industry. These results are a strong indicator of market success. And with consumer demands evolving quarter-by-quarter, iGaming operators and their affiliates have the important task of analyzing the current gaming landscape, focusing on the developments expected in live sports betting and responsible gaming activities, while also understanding any new rules set by the province’s iGaming bodies.
Live sports betting has become an increasingly popular online betting form as it offers players more diverse betting options which makes a player’s gaming experience more immersive and interactive. Players could be watching a baseball game, seeing their favourite team leading on the scoreboard, and if they so choose, they can place a wager on the game through the live betting odds. As technology continues to evolve, live sports betting can expect to witness more significant advancements. Sports fans can look forward to the following developments:
Real-time Data and Analytics: With the integration of advanced analytics and data, bettors can make more informed decisions during live sports events. Real-time updates on player performance, injury updates, and match statistics will enable bettors to adjust their strategies on the fly.
Enhanced Live Streaming: Online sportsbooks are investing in high-quality live streaming capabilities, enabling bettors to watch games in real-time while placing their bets simultaneously. This convergence of live sports and betting creates a dynamic and engaging environment.
Innovative Payment Features: Having innovative payment features such as One-Click repeat deposits offered through Paramount Commerce’s Instant Bank Transfer solution is essential for operators looking to provide a more immersive gaming experience for their players. One-Click repeat deposits securely store a customer’s payment information and allow them to make repeat deposits with just one click. This payment method saves time and reduces friction in the payment process, providing a better betting experience for players.
As the popularity of iGaming and sports betting grows, industry stakeholders are focusing on responsible gaming practices. Ontario has implemented measures to protect consumers and promote responsible gambling. Here are some initiatives to look out for:
Responsible Marketing: Responsible Marketing is one of the most important components of responsible gaming. The Alcohol and Gaming Commission of Ontario (AGCO) and iGaming Ontario established important advertising and messaging requirements which help consumers enjoy a safe and fun gaming experience.
An important part of the AGCO’s Registrar’s Standards for Internet Gaming is advertising and marketing. The core principles of the AGCO’s responsible advertising standards can be broken down into three main categories:
Protect individuals: Through responsible advertising, AGCO aims to work with operators in protecting individuals who are underage, at high risk, and have self-excluded themselves from online gambling.
Stay truthful: iGaming operators must not misguide consumers through advertisements of their products or promotions. Offers cannot promote excessive play or require players to incur substantial losses.
Restrict inducements: To tackle gambling-related problems, iGaming operators may only advertise inducements, bonuses, and credits on their websites.
Recently there have been reports on the province looking to further strengthen its responsible marketing efforts. AGCO is looking into banning athletes and celebrities from featuring in online gaming ads as it could appear in front of a younger audience that is not the intended audience for these ads. These tactics will ensure a safer betting environment for consumers in the province.
Responsible Gaming Campaigns: In an iGaming Ontario report on responsible advertising, it was mentioned that iGaming operators moving into Ontario must also commit a portion of their gross gaming revenue generated in the province towards problem gambling prevention and responsible gaming campaigns. All advertising and marketing materials must include a responsible gambling message. It is noted that after the first year of market launch, the amount of revenue used towards responsible gaming campaigns will be established and operators will be required to provide a report, every six months on:
‐ Upcoming RG campaign details such as messaging, media platforms, timing, and duration
‐ Effectiveness of previous RG campaigns based on pre-set Key Performance Indicators (KPIs)
As the province’s regulated iGaming market moves into its second year of operation, this will be a very important component in providing constant messaging and education around responsible gaming to consumers.
The Rise Of Alternative Payments
With Ontario’s iGaming market evolving, consumers are demanding new and innovative payment solutions and features to make their gaming experience more convenient. Traditional payment methods such as credit cards have multiple issues. Credit card acceptance rates are very low in Canada’s gaming industry; two of the major five banks do not accept credit card payments, while one other only accepts deposits but not withdrawals to a credit card. Due to these reasons, alternative payment methods offered by providers like Paramount Commerce are constantly innovating to meet consumer needs. Paramount Commerce supplies well-known solutions such as INTERAC and Instant Bank Transfer. Here are some of the benefits for consumers and operators linked with these solutions:
Game-Changing Deposit Features: Gaming enthusiasts often face the inconvenience of leaving their immersive gaming experience to make a deposit. Through our One-Click and In-game deposit features, offered through Instant Bank Transfer, players can seamlessly make deposits without interrupting their gameplay. This innovation delivers instant gratification, enhancing customer acquisition and retention rates.
Withdraw Your Winnings, Your Way: The moment players collect their winnings is crucial. However, some players encounter limited withdrawal options when they choose payment methods like prepaid credit cards, which are primarily designed for deposits. With our cutting-edge Verified Withdrawals feature, customers can securely withdraw their funds directly to their bank accounts, regardless of the initial deposit method used.
Compliance Is Key: Paramount Commerce’s bank-account-based payment solutions are fully compliant with the regulatory requirements established by the province of Ontario. Our solutions feature essential compliance elements, including bank account ownership checks and consumer location features, providing merchants with an additional layer of regulatory assurance in the newly regulated gaming market.
Robust Risk Management Support: Our state-of-the-art risk management system backs solutions such as Instant Bank Transfer. This system plays a crucial role in fraud reduction, minimizing rejection rates, and maximizing transaction volume. Paramount Commerce also offers a real-time decision engine proven to mitigate fraud and equip merchants with the necessary risk management tools. With our comprehensive risk management and fraud prevention solution, which leverages data from leading industry sources, transactions are kept secure while a dedicated risk team continuously enhances prevention and detection rules.
As the gaming industry grows, operators will have to be on the lookout for more diverse and innovative payment solutions that help them stand out from the competition and support their customer acquisition and retention strategy.
Ontario’s regulated iGaming industry has proven to be a resounding success in its first year, emerging as one of the largest markets in North America. With a staggering number of operators, active player accounts, and significant revenue generated, the potential for growth and innovation in the coming years is immense. Live sports betting is set to evolve with real-time data and analytics, enhanced live streaming, and innovative payment features, providing a more immersive and engaging experience for players. Responsible gaming practices are gaining traction, with measures in place to protect consumers and promote responsible gambling. The rise of alternative payment solutions, such as Paramount Commerce’s INTERAC and Instant Bank Transfer, offers game-changing deposit features, secure withdrawals, compliance, and robust risk management support. As the industry continues to grow, operators must embrace new trends, technologies, and practices to stay ahead of the competition and cater to evolving consumer demands.
The Paramount Commerce team is exhibiting at the 2023 Canadian Gaming Summit. The event takes place from June 13th to June 15th, 2023, at the Metro Toronto Convention Centre. Book a meeting with our team today or simply swing by Booth D110 to chat about online gaming & payments. For more information, please visit: https://www.paramountcommerce.com/canadian-gaming-summit
We’re also hosting the party of the season: Gaming & CO In T.O. Returns! Thank you to all of our partners for making last year’s party a huge success. We’re counting on you to help us make this event even bigger. The party is happening on June 14th at Harriet’s Rooftop (1 Hotel In Toronto). Reach out to us today and secure your spot on the guest list: https://www.paramountcommerce.com/contact