Canada has an unusual system for regulating gambling activities that diverges from the model utilised by most other nations. Rather than centralising the oversight on the national level, it has left significant power to control gambling to individual provinces. Because of this, legalisation of sports betting has moved at different speeds in different parts of Canada, with Ontario being one of the most cautious jurisdictions. However, as of 2024 even Ontario has let down its guard and allowed online providers to offer betting services to its residents. Let’s see how that has affected the fortunes of this populous and prosperous Canadian province.
A Historical View of Legal Gambling in Ontario
The first form of sports betting to be legalised in Ontario and the rest of Canada was horse racing. Starting from 1910, betting on the outcomes of races became legal across the country and it has remained so ever since. Ontario first established its own regulatory body to control this activity in the 1950s, with the formation of the Ontario Racing Commission (ORC). The next in line was the lottery, which has been introduced to the province in 1975 and administered by the Ontario Lottery and Gaming Corporation. A couple of decades later, casino gambling was allowed with the first casino establishment in Ontario opening its doors in 1994.
However, when it came to Ontario sports betting the citizens had to endure a long wait, as the province was the last in Canada to fully liberalise it. Only in 2022 it became legal for sportsbooks to operate in its territory or provide services remotely to Ontario residents. Since online gambling was introduced at the same time, this lead to a sudden proliferation of diverse iGaming services that continues at a rapid pace to this day.
The Most Immediate Consequences of Full Legalisation
Obviously, relaxing the strict bans on most forms of gambling gave the population of Ontario a new way to have fun without breaking the law. The interest for sports betting in the province spiked, and many new providers, both local and international, rushed to meet the demand. A budding industry has formed within just a few years, creating significant revenues for the government and strengthening the local economy. At the same time, the number of people who visited offshore betting sites decreased quite dramatically since there is now a legal pathway to place wagers on all kinds of sports events.
Legal gambling also made Ontario a more attractive tourist destination and in particular helped Toronto to improve its standing as one of the great North American cities to visit. The appeal of sports teams located in Toronto was likewise strengthened, since casual fans now can spice up their game day experience with small wagers and enjoy watching live events on TV or the internet even more.
Remaining Issues with the Betting Industry in Ontario
Despite all the positive buzz surrounding the iGaming industry in Ontario, there are still some wrinkles that need to be ironed out. Most notably, there is the issue of compulsive gambling that affects a small but significant portion of all bettors, potentially leading them to financial ruin and other personal and family problems. With total number of people engaging in betting on the rise, there is pressure on the providers to take a more proactive role in this regard. At present, betting sites offer guidance and direct players towards self-exclusion programs, but more should be done to limit the dangers of gambling addiction, especially on young people.
Another potentially explosive issue is the corrupting influence of gambling on the integrity of sports competition. This issue is magnified in Ontario due to the incident where a Toronto Raptors player Jontay Porter was caught attempting to influence the outcome of prop bets in order to settle his own gambling debts. Porter was just a role player and not a star, but unless something is done to eliminate this possibility it’s perfectly possible to a see a much bigger scandal of the same kind.
Is Online Betting Benefiting Ontario and Its Citizens?
It’s only been two years since Ontario opened the floodgates and invited big online bookmakers to enter the market, so it’s difficult to speak about long-term impact on the economy or the society at large. The proponents of legalisation are quick to point out that reduction of illegal betting is a positive outcome in itself. Tax revenues have obviously been beefed up by the large volume of betting activity, but it remains to be seen how this money can be used to the benefit of all Ontario residents.
So far, it appears that online betting didn’t significantly contribute to criminal behaviour of any kind. The risk of problematic gambling remains, although it was present before legalisation and it can probably be handled better within the legal framework. Thus, opening up the market seems to have been the right decision that brought Ontario closer to the rest of Canada, but diligent supervision is needed in order to keep this industry in check and prevent negative impact on local citizens.
