Is the Ontario iGaming market facing a decline?
When Ontario opened up its iGaming market in April 2022, it was a massive shift. Before that, gambling was either run by government-backed sites or sketchy offshore casinos. Suddenly, private operators could legally enter the space, and players got a ton of new options, all under a strict, regulated system that was supposed to keep things fair and safe. And for the first couple of years, it worked. The market exploded, revenue hit record highs, and Ontario became a leader in North America’s online gambling scene.
Fast forward to 2025, and things aren’t quite as explosive. The latest reports from early 2025 point to a noticeable decline in total wagers and revenue. It’s the first real sign that the market might be slowing down. So, what’s causing it? Have players lost interest? Are regulations becoming too restrictive? Or is this just a natural correction after the rapid expansion?
Whatever the case, Ontario’s iGaming market is at a turning point. Let’s take a deeper look at the numbers, the trends, and what the future of online gambling in the province means.
What the figures say
Ontario’s iGaming market isn’t growing like it used to. Case in point, in Q3 of 2023-24, total wagers hit $17.2 billion, but by Q4, that number had dropped to $14.5 billion. Revenue followed the same trend, sliding from $658 million to $540 million.
What’s interesting, though, is that player numbers didn’t dip during that period. About 1.3 million accounts remained active, which means people were still here, probably just spending differently. Maybe it’s the economy, maybe it’s betting fatigue, or maybe the market is just leveling out after an explosive start.
More recently, in February 2025, iGaming Ontario’s data showed a 15% revenue dip from January to February, sliding from $327.9 million to $280.1 million. Looking at the breakdown, sports betting took the biggest hit, nosediving 33% from $91.9 million to $61.5 million. Even the Super Bowl couldn’t lift the numbers. Online casino revenue also dipped, but only by 7%, from $230 million to $214 million. Poker saw a 14% drop, from $5.6 million to $4.8 million.
Still, online casinos are holding the industry together. For example, as recent as February 2025, it accounted for 76% of all iGaming revenue, dwarfing sports betting (22%) and poker (2%). Interestingly, even with the recent decline, February still ranked as one of the highest-earning months in Ontario’s online casino history.
What’s happening here isn’t a collapse but a market adjusting after a period of aggressive growth. The boom days might be over, but the industry itself is still strong.
What are the possible reasons for the decline in the iGaming market
As we just said, the hype around Ontario’s iGaming market isn’t what it used to be. A few years ago, it felt like new platforms were launching every week, operators were fighting to give out the best bonuses, and bettors had more options than they knew what to do with.
Now, things are shifting. Revenue is dipping, total wagers are down, and it’s clear the industry isn’t growing at the same breakneck speed. So, what’s going on?
Sports betting took a hit
This one’s easy to explain. Football is king when it comes to sports betting, and once the Super Bowl is over, there’s a natural drop in wagers. Ontario saw that firsthand in February, with sports betting revenue falling by 33% compared to January. Even though basketball and hockey are still running, they don’t bring in the same kind of money. It’s just part of the cycle; betting always slows down when there aren’t major sporting events driving the action.
The gold rush phase is over
When the market first opened, it was a free-for-all. Dozens of companies launched at once, blasting out promotions and free bets to get people through the door. That kind of chaos made for massive early growth, but it was never going to last. Now, three years in, things are calming down. People aren’t chasing every new sign-up bonus, and operators aren’t throwing out cash like they used to. Instead, the industry is shifting into a more mature, stable phase.
Gambling budgets are shrinking
Let’s be real; when the cost of groceries, rent, and everything else is climbing, people aren’t throwing as much money at online casinos. The number of active accounts in Ontario hasn’t dropped, which means people are still playing, but they’re betting less. That lines up with what’s happening in other industries, too. It’s not that gambling isn’t popular anymore. It’s just that people are being more careful with their money.
Operators are tightening up
In the early days, promotions were everywhere. Free spins, massive deposit bonuses, cashback offers—you name it. Now? Not so much. Operators have pulled back on the big promos, focusing more on keeping their existing customers happy rather than constantly bringing in new ones. That shift means fewer reasons for casual bettors to go all-in, which is likely contributing to the overall decline in wagers.
So, what does all this mean? Ontario’s iGaming industry isn’t crashing but just moving past its wild, early years. The numbers might not be hitting record highs anymore, as is the case with $1 deposit casinos in British Columbia, but the market is still strong. It’s just entering a new phase, one that’s less about hype and more about long-term stability.
iGaming trends
Even with the downturn, different sectors within Ontario’s iGaming market are performing differently. Let’s take a look at how casino games are fairing compared to sports betting and the impact Super Bowl has on the market.
Casino games vs. sports betting
Even with a small dip in revenue, online casinos remain the powerhouse of Ontario’s iGaming market, pulling in 85% of all wagers. This sector isn’t going anywhere. Sports betting, though, is proving to be far less stable. The 33% drop in revenue from January to February is a reminder that this market is unpredictable and heavily tied to seasonal trends.
The Super Bowl’s effect
If anything could’ve boosted sports betting, it was the Super Bowl. But even that wasn’t enough to stop the downturn last February. Total sports wagers fell 21% from January, sliding from $1.2 billion to $930 million. That’s a steep drop, showing that even massive sporting events aren’t guaranteed to keep the numbers up. The industry needs a broader, more consistent strategy to maintain long-term momentum.
What this means for the future
A single quarter of lower numbers doesn’t mean Ontario’s iGaming market is in decline. It’s one of the most established in North America, and like any industry, it goes through cycles. The focus now is on how it adapts.
Regulatory decisions will play a huge role as responsible gambling measures evolve. At the same time, the platforms that innovate, whether through better user experience or new game offerings, will be the ones that thrive. And let’s not forget that major sporting events and new competitors entering the market could shake things up.
Long story short? This isn’t the end. Ontario’s iGaming market is simply moving into a more stable, long-term rhythm.
Conclusion
Is Ontario’s iGaming market in trouble? Not quite. Sure, the numbers show a dip; sports betting took a hit, and total wagers have cooled off, but let’s not mistake a slowdown for a collapse. Casino gaming is still pulling in the bulk of revenue, and the number of active gamblers hasn’t dropped. People are still playing; they’re just spending a little differently.
Markets shift, and that’s exactly what’s happening here. The early rush of promos and excitement has settled, and now, we’re seeing a more realistic, long-term pattern take shape. The real question isn’t whether iGaming is slowing down; it’s what comes next. Will new operators shake things up? Will upcoming sports events bring a rebound? One thing’s for sure: Ontario’s iGaming scene isn’t fading away. It’s just finding its rhythm.