Ontario Lottery Boosts iGaming Amidst Increased Competition

The Ontario Lottery and Gaming Corporation, known as OLG, has increased its online casino gaming offerings and increased revenue due to a wave of private-sector competition.

Taking Action

A review of OLG ‘s operations in 2022 by the Auditor General triggered decisive action by Ontario’s government-run gaming agency. The report dug deep into the agency’s digital sports betting, online casino and lottery business, noting that it now faced “significant competition” from private gaming firms after the online market was opened to them in April 2022.

The report contained many suggestions and recommendations that were embraced by OLG, and the most recent report from the Auditor General noted the swift and deliberate action taken to counter competition from the private gaming platforms in the province.

“As part of this strategy since our 2022 audit, OLG began introducing games every week with new features to drive engagement,” Tuesday’s follow-up report said. “Between February 1, 2024, and April 30, 2024, OLG introduced 80 new games, or about six new games per week.”

Game Changer

As opposed to standing still with old titles, OLG was proactive in introducing new games and formats to not only satisfy their core customers but to attract new business to the site. The agency now offers live casino games broadcast from a studio it shares with other provincial lotteries.

“As of June 2024, OLG is exploring options for new product offerings and whether to join a national network or keep the product within a specific region,” the follow-up added. “A potential implementation of the new option is expected by April 2025.”

The Ontario government receives 45% of OLG’s iGaming revenue as profit while receiving only 5.7% from the private gaming firms’ revenues. The financial health of OLG is vital to the province, and the improvements it has made to its products have paid dividends. OLG reported a year-over-year increase in digital gaming revenue of $81 million, from $669 million in FY 2022-2023 to $750 million in FY 2023-2024, ending March 31st of this year.

National Poker Network

OLG is also looking to expand its online poker network to other provinces, perhaps joining the “Canadian Poker Network” that is shared by British Columbia and Quebec.

Major strides have been made since the 2022 audit, and it appears OLG is looking for more ways to expand its footprint and improve its product in preparation for the next audit. However, some of the suggestions from the previous audit like cross-selling lottery customers on mobile sports betting and iGaming were no longer relevant.