Ontario’s regulated online gambling market crossed the $5 billion annual revenue threshold in its second full year of operation, delivering a windfall of provincial tax revenue while raising questions about responsible gambling enforcement that other provinces are watching closely.
The Alcohol and Gaming Commission of Ontario (AGCO) released figures showing the iGaming market generated $5.23 billion in gross gaming revenue during the 2025-26 fiscal year, up from $3.67 billion the previous year. That translated to $658 million in provincial tax revenue at the 20% rate operators pay.
The growth reflects both market maturation and aggressive operator marketing. Ontario now has 62 licensed online gambling operators, including major international brands like bet365, DraftKings, and PointsBet alongside homegrown companies.
Dave Forestell, interim CEO of AGCO, characterized the market’s growth as “exceeding expectations while maintaining regulatory standards.” But critics question whether those standards are being adequately enforced.
Responsible Gambling Council data shows that calls to Ontario’s problem gambling helpline increased 34% year-over-year, with the sharpest growth among 19-25 year-olds. Self-exclusion registrations also jumped significantly, raising concerns that aggressive marketing is driving problem gambling rates upward.
The Ontario government points to mandatory responsible gambling tools built into all licensed platforms, including deposit limits, time-outs, and self-exclusion options. But research from McMaster University suggests many players don’t utilize these tools until gambling has already become problematic.
Other provinces are watching Ontario’s experience as they consider opening their own markets. Quebec continues to protect Loto-Quebec’s monopoly, arguing that a single operator allows better problem gambling controls. Alberta is studying the Ontario model but hasn’t committed to market liberalization.
The revenue numbers are undeniably attractive for provincial governments facing budget pressures. Ontario’s $658 million in iGaming tax revenue exceeded initial projections by over $150 million, money that flowed into general revenues.
But the social costs are harder to quantify. Addiction treatment services report longer waitlists and more severe cases presenting for help. Financial counselors note increased gambling-related debt among clients.
The regulatory challenge is balancing revenue generation against harm prevention. Ontario’s model allows market competition while imposing player protection requirements, but whether those requirements are sufficient remains hotly debated.
One thing is certain: the market isn’t slowing down. Operators continue entering Ontario, and average revenue per player keeps climbing as sports betting, casino games, and poker all grow simultaneously.
