Will Ontario raise taxes on gambling operators to drive much-needed revenue?

Faced with tough economic times driven by U.S. tariffs it’s not off the table, but still unlikely. We explain why.

May 21, 2025

Will the Ontario government raise taxes on online gambling operators to help fill a budget shortfall? Not likely, but the release of the province’s tariff-fighting budget last week, coupled with an interesting piece Steve Ruddock had in his excellent Straight to the Point newsletter on Tuesday, certainly doesn’t put future gambling tax increases out of the question for Canada’s most populous province.

The budget, billed as “A Plan to Protect Ontario” touted major spending measures to protect workers and jobs impact by the tariff war started by the United States. Though we could not find any specific references to Ontario’s burgeoning gambling industry in the document, the financials do show an obvious need for increased revenue. That’s where Ruddock’s writing comes in.

Ruddock, who’s been covering the industry since 2009, detailed many examples of U.S. states considering raising taxes on sports betting operators as a way to deal with budget shortfalls, including this:

“From Louisiana’s proposed hike to 32.5% to North Carolina’s potential doubling to 36%, these efforts are pitting revenue versus industry growth. To date, only two states have raised their sports betting tax rates post-launch, but five others have increased tax burdens on operators.”

Ruddock reported that eight states — Louisiana, New Jersey, Massachusetts, Maryland, Indiana, Ohio, Colorado and North Carolina — are engaged in ongoing efforts to raise sports betting taxes.

In Ontario, online gambling operators are taxed at a relatively-fair rate of 20% when compared to other North American jurisdictions.

That’s unlikely to be raised anytime soon because unlike most U.S. states, Ontario’s online sector was designed to attract as many grey market operators into the regulated space. Ontario did that by offering a fair tax rate, relatively low licensing costs, the ability to offer online casinos — which offer higher margins and potential profits — and were allowed to take their existing customer lists with them from the unregulated space to the legal one (much to the consternation of those operators that did not operate in the grey market prior to launch).

Raising taxes and/or fees on Ontario operators now to drive much-needed revenue raises the spectre of operators leaving the regulated market for the grey one. That not only would mean fewer operators in the legal space to drive revenue, it works against another stated goal of regulation: better consumer protection.

Besides, as we told you in our April 26 newsletter, revenue from Ontario online gambling operators has increased in each of the first three fiscal years since the sector launched in April of 2022 and has already exceeded $7 billion lifetime. That growth should continue and the budget document predicts it will. That means online gambling very likely will already be contributing more to Ontario coffers in coming years without the necessity of raising taxes.

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Could B.C. be the third Canadian province to launch an open iGaming sector?

Here’s one we missed initially from a few weeks ago: Geoff Zochodne, the senior news analyst for Covers, reported that online gambling companies have been lobbying the British Columbia government to launch an open online gambling market similar to the one in Ontario and the one expected to launch in Alberta in the first half of 2026.

No real surprise that the lobbying has happened. But where does the current B.C. government stand on the issue?

Zochodne wrote: “There's no indication yet that B.C.'s NDP government is interested in a competitive iGaming market, but it's at least ‘open’ to talking about it, according to one industry leader.”

Currently, the only legal online gambling option in Canada’s westernmost province is the PlayNow platform operated by the BC Lottery Corporation.

Despite the ongoing efforts by the Quebec Online Gaming Coalition, there’s been no indication from Francois Legault government of going down the same path as Ontario and Alberta.

Play Alberta signs deal with CFL Elks

A more recent story from Covers, this one by Ziv Chen, reports that Play Alberta — currently the only legal online gambling entity in the province — has signed a multi-year deal to become the official sports betting partner of the CFL’s Edmonton Elks.

The deal will include the renaming of Commonwealth Field to Play Alberta Field.

Play Alberta is the online gambling platform operated by the Alberta Gaming, Liquor and Cannabis (AGLC). Play Alberta is expected to retain a monopoly on the legal online gambling market for the rest of 2025 while the province prepares to launch an open online market early in 2026.

AGLC is also getting additional bang for the proverbial buck through its partnership with the Edmonton Oilers, who begin their Western Conference final against the Dallas Stars this evening.

FanDuel details Real-Time Check-In on latest Gaming News Canada Show

FanDuel’s senior commercial director, Jill Watkins, and the company’s vice-president of public policy and sustainability, Cory Fox, joined host Steve McAllister to talk responsible gambling on the latest Gaming News Canada Show.

Specifically, the pair of FanDuelers spoke about their company’s Real-Time Check-In tool designed to increase responsible gambling. Watkins and Fox walked us through Real-Time Check-In and spoke about the use of artificial intelligence in the creation of the new tool, the motivation for the operator’s increased investment in responsible gambling, and if there have been any lessons learned from operating in Ontario.

FanDuel has previously launched other RG tools and campaigns. At the end of 2024, FanDuel introduced its My Spend tool and also agreed to a partnership with Kindbridge Behavioral Health,

You can listen to the show via your favourite podcasting app, or watch it here:

People on the Move

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Classified (Jobs) Information

There’s an opening in Louisville for a Vice President Marketing – Sports Betting/iGaming.
Sportradar is hiring a Senior Sales Executive - Brand Partnerships & Sponsorship for its London offices.
GamesBeat wants to add a Strategic B2B Partnerships Director to its team.
DraftKings has some engineering needs and is looking for Canadian talent. There’s also a remote opportunity in the U.S. for a Retail Sportsbook Program Manager.
PointsBet Canada is in hiring mode for a Compliance Analyst.
FanDuel is searching for a ~~Weather~~ Workforce Management Forecaster.
Wanted by Bet99: a Bilingual Junior Affiliate Associate.
They’ll need an enlarged business card if they land this mat leave opening at Entain for a Specialist Resourcing Partner – Performance Marketing, Sportsbook and Gaming.
Fanatics is searching for a Senior Manager, Payments and a Senior Responsible Gaming Analyst.
Seen while perusing the Google Careers page: a Business Development Manager, Content Acquisition, Play Games Partnership.
The Ontario Lottery & Gaming Corporation is seeking a Senior Premium Customer Care Specalist, and is also looking for a Senior Retail Sports Analyst.
Swintt is in the market for a Marketing Manager.
Digital Gaming Corporation is hiring a Paid Social Manager in New York.
There’s a Risk & Fraud Specialist role up for grabs with Rhino Entertainment.
Electronic Arts has an opening in Orlando for an Esports Brand Marketing Manager – Sports.
Kambi has an opportunity for a U.S. Sports Trader in the City of Brotherly and Sisterly Love.
There’s an Account Manager opening at Push Gaming.
Manitoba Liquor & Lotteries has an opportunity for a Social Responsibility Consultant.
BCLC has a posting for a Player Rewards & Incentives Manager.
SharpStakes is seeking to onboard a Finance Manager.
Not-for-profit Fintechs Canada is hiring an Executive Director.
Stats Perform has an opportunity for a Performance Integrity Manager.
Glitnor Group is looking for a Senior Accountant.
Apple is in hiring mode for a Head of Creator Experiences.
Canucks Sports & Entertainment is hiring a Director, Social Media & Content.
Wanted by the Professional Women’s Hockey League: a Senior Manager, Business Analytics, and a Communications Manager, West Coast.
Maple Leaf Sports & Entertainment is on the lookout for a Director of Security Operations and a Liaison Officer.
Needed at National Football League HQ: a Broadcasting Associate.
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Among the Ottawa Senators’ offseason needs is one for an Account Manager, Suite Sales & Service.
Also in the nation’s capital, the lacrosse Black Bears are hiring a Manager, Marketing and Activations.
The proprietors of the Winnipeg Jets are in the market for a Manager, Partnership Integration.
Delatre has an opening in Madrid for a Project Manager.
Tourism Calgary is hiring an Account Manager, Sport, Culture and Major Events.
There’s an opening for a Data Scientist with the Golden State Warriors.
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