The Ontario government may be pocketing billions in gambling revenue, but that windfall has come with some serious downsides.
Driving the news: A new study from the Canadian Medical Association Journal found that calls to Ontario’s mental health hotline for gambling issues have skyrocketed over 300% among young men since the province legalized private online gambling in 2022.
Researchers found that calls jumped 108% for men aged 25-44, while calls from 15 to 24-year-olds increased by 317%. The report comes as betting volume in Ontario hit a record high of $9.5 billion in January.
Catch-up: Ontario is the only province in Canada that allows private sportsbooks and casinos to operate. The province takes a 20% cut of what they bring in from Ontario bettors, amounting to a staggering $2 billion in tax revenue since 2022.
Why it matters: The growing number of hotline calls underscores just how quickly the public's gambling habits can shift when the market is opened up to private online sportsbooks and casinos. The surge in gambling problems is a stark warning to other provinces, like Alberta, that are following Ontario’s lead.
Studies have found that in areas where online betting is legal, average credit scores dropped by 1% and the likelihood of filing for bankruptcy increased by 25% to 30% after four years of legalization.
Zoom out: Even with stricter regulations in other provinces, ~60% of Canadians are now gambling every month. Ontario is showing what can happen when a province really opens the floodgates.—LA