Ontario’s regulated online gambling sector recorded a broad decline in February, pulling back from record figures posted the previous month while still maintaining solid growth compared to last year.
Data released on March 26, 2026, showed total cash wagers reached $8.735 billion, an 8% decrease from January’s peak of $9.52 billion. Non-adjusted gross gaming revenue also dropped, falling 15% month-over-month to $342.4 million. Despite the monthly slowdown, both figures remained about 22% higher than February 2025 levels.
Monthly Drop Follows Record January
February marked the lowest monthly totals for wagering and revenue since September 2025, ending a stretch where both metrics had consistently exceeded $9 billion in handle and $400 million in revenue between November and January.
Player engagement softened slightly. Active accounts declined 2% to approximately 1.298 million, while average revenue per active player fell 13% to $264. That figure represented the lowest monthly return per player in a year.
The provincial government continues to collect a significant share of industry proceeds. With operators taxed at around 20% of non-adjusted gross gaming revenue, Ontario generated roughly $68 million in tax revenue during February.
Sports Betting Revenue Drops Sharply
Sports betting experienced the steepest decline among all verticals. Revenue fell 29% month-over-month to $61.3 million, even as wagering volume reached $946 million. That handle represented the lowest level since August, though it still edged slightly above the same period last year.
The timing of the Super Bowl on February 8 influenced the results. The event traditionally drives peak betting activity, and a slowdown afterward is common across the sector.
Casino gaming, which dominates Ontario’s online market, also recorded a monthly decrease but continued to show strong annual growth. Casino wagers totaled $7.65 billion, down from January but up 26% year-over-year. Revenue from this segment rose 29% compared to February 2025, reaching $275.7 million.
Peer-to-peer poker remained a small portion of the market. Wagers came in at about $135 million, while revenue stood near $5.4 million, both lower than the previous year. The segment continues to operate within a closed player pool limited to the province.
Competitive Landscape Continues To Shift
At the start of February, Ontario had 48 licensed commercial operators running 82 regulated sites, though both figures decreased slightly during the month after one operator suspended activity.
Competition intensified in the sports betting segment following the rollout of an upgraded platform by Ontario Lottery and Gaming in late January. That activity is not included in the main market data but adds pressure on private operators.
Additional entrants are expected. Streaming platform DAZN has secured approval to launch its betting product in the province, signaling further expansion in the near term.
Regulatory developments may also affect the market’s direction. A court decision that could allow shared international liquidity for online poker remains under appeal to the Supreme Court of Canada, leaving uncertainty around future growth for that segment.
While February’s results highlight short-term fluctuations, the broader trend points to continued expansion. Year-over-year gains across wagering and revenue suggest the market remains on a strong trajectory even as monthly performance varies.
Source:
“29% Drop in Ontario Sports Betting Revenue in February“, nationaltoday.com, March 26, 2026
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