Ontario has prohibited online betting advertisements from showcasing celebrity athletes.

Updated:26.09.2023

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Effective February 24, 2023, companies involved in iGaming and casinos in Ontario can no longer use athletes or celebrities in their advertising campaigns, as per the decision from the Alcohol and Gaming Commission of Ontario (AGCO).

This change follows raised concerns about the effects that endorsements from well-known personalities may have on younger audiences regarding gambling. Notable figures, including hockey superstar Wayne Gretzky and current NHL athletes Connor McDavid and Auston Matthews, had previously featured in various promotional initiatives. Ontario began accepting Since the legalization of independent online gambling platforms last year, the debate has intensified.

Tom Mungham, who serves as the registrar and CEO of AGCO, provided the following statement:

“Young people and children are significantly influenced by the famous athletes and celebrities they admire. Therefore, we are enhancing measures to protect Ontario's youth by banning the use of these influential personalities for promoting online gambling activities.”

Regulation Changes Follow Public Consultation

The ongoing tension between Ontario's provincial government, its voters, and the gambling sector has drawn attention since the activity was legalized at the beginning of last year.

Part of the justification for the ban stems from ongoing pressure and criticism from advocates and parents directed at the government. Various mental health organizations, gambling analysts, and gaming businesses have voiced their concerns. Canadian Senator Marty Deacon, who sponsored the proposal, however, believes that the measures taken are still insufficient and anticipates that other provinces may implement similar regulations.

He said:

“While this is a positive development, I would have preferred to see more comprehensive actions. If other provinces start allowing private betting markets, there is no requirement for them to adopt similar advertising practices.”

How Popular Is iGaming in Ontario?

Data from the third quarter of 2022 indicates that gambling activities are widespread in Ontario, complicating the regulators' task of finding balance.

According to the recent iGaming Ontario market performance report for the second quarter of the fiscal year 2022-23 (covering July 1 to September 30, 2022), there has been a substantial increase in both total wagers and gaming revenues. In total, the stakes rose to $11.53 billion, marking an impressive 91% increase compared to the second quarter without accounting for promotional bets or bonuses.

Furthermore, the total gambling revenue for Q3 reached $457 million, reflecting a 71% rise from Q2. This revenue encompasses all cash wagers placed by players, including fees from rake, tournaments, and others, while deducting player winnings from cash wagers without factoring in operational costs.

As of December 31, 2022, there were 36 operators, representing a 50% rise from Q2, and the number of gaming websites surged to 68, which is a 62% increase from Q2. For the most current list of operators and gaming sites, check iGaming Ontario's official website.

The count of active player accounts rose significantly to reach 910,000 in Q3. This indicates a 45% increase from Q2 and covers both cash and promotional wagering activities. It is worth noting that not every account corresponds to a unique individual, as some might possess accounts across multiple operators.

Why is Ontario's Regulatory Framework Unique?

Ontario's approach to structuring its iGaming sector is quite innovative. Instead of following the conventional route of simply granting licenses to operators, the Ontario government has set up iGaming Ontario. This organization allows operators to enter the iGaming market as private contractors, functioning under the guidance of a government entity.

This collaborative framework allows both iGaming Ontario and the operators to influence the future development of the iGaming landscape, rather than relying solely on advancements from within the industry. Additionally, Ontario adheres to an extensive range of regulations at both regional and national levels. These regulations encompass standards such as the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) andthe Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), along with the continually changing regulations set forth by the Alcohol and Gaming Commission of Ontario. What Changes Can We Expect in Gambling Advertising in Ontario?

Depending on your viewpoint regarding the gambling industry, you might see this as either a positive or negative development. One fact remains clear: it will substantially alter marketing strategies within this sector.

From an optimistic perspective, this could spark a competitive atmosphere in Ontario. Without the draw and influence of well-known personalities, advertising will need to refocus on the core aspects of their offerings, such as inventive game mechanics, appealing odds, or distinctive customer experiences. As a result, the landscape may become fairer, allowing smaller firms to compete effectively against larger corporations that previously depended on high-profile endorsements to increase brand recognition. This may encourage a more competitive environment, promoting ingenuity and fresh approaches in marketing tactics.

Conversely, some may contend that the prohibition could ignite discussions about free speech and the rights of industries concerning their preferred advertising strategies.

Dmitry Rogalchuk, with over five years of experience in the iGaming sector, heads a content team at CasinoCanada, ensuring that each article on their website is both informative and engaging for readers.