Over the past few months, Canada’s economy has been a far hotter topic than usual, primarily due to US tariffs. This has led the nation and its provinces and territories to re-evaluate their regulations and ability to be self-sustaining economies. Ontario is no exception to this self-reflection and is taking steps to be more self-reliant. Much of the groundwork for bolstering its economy was introduced before the tariffs were imposed, but these efforts have been further enhanced and emphasized in light of the changing dynamics of international trade partnerships.
The province has opened its economy to different sectors and enterprises through a surprising tactic: regulatory updates. By developing comprehensive regulatory updates, the province has welcomed emerging sectors, enabling enterprises and businesses of all sizes to enter the market and establish a lasting, scalable presence within the province.
Perhaps the most notable of these regulatory changes was the development of iGaming Ontario, a regulatory body designed to shift a grey-market activity into a legal industry that has become a global example for the online gambling industry and a significant revenue driver. Ontario has also responded to tech advances and changing consumer preferences by embracing industries such as fintech and AI.
Additionally, Ontario has put great effort into shaping a business-friendly environment that attracts diverse enterprises, stimulating the economy across sectors. This article will explore the impacts that smart, responsive policies shaped by evolving needs and preferences can have on building a robust, adaptive, and resilient economy that drives revenue, job creation, and other key factors impacting individuals and the province as a whole.
How Ontario Builds Trust in Emerging Markets
By implementing regulatory frameworks for emerging industries, Ontario has generated billions of dollars, created thousands of jobs, and shaped thriving marketplaces. These impacts are felt across sectors as diverse as digital health, cannabis, and online gambling and are shaped by regulatory developments and ongoing oversight. The province has developed frameworks that outline how these industry-specific products and services are delivered and implemented to prioritize individual safety, and in the case of industries like digital health and fintech, to streamline access for both urban and rural residents. This enables residents across the province to access the products and services, and for businesses to set up operations with a clear framework for navigating and implementing the policies, licensing, and other pertinent legal obligations within their industry.
Beyond shaping laws that embrace these industries, the province also provides funding, tax benefits, and other incentives that allow industries to innovate, excel, and ideally become hubs not just in Canada, but also on a global scale. An example of this is Ontario’s development of an AI-friendly business environment that aims to leverage its reputation for building some of the earliest AI models and to implement the development of large language models (LLMs) on a broader scale. The province is working towards this by funding venture capital (VC) initiatives, developing safe and responsible AI use policies, and attracting global talent through its post-secondary education system.
Ontario’s consistency, oversight, and funding shape a stable and reliable market that builds trust for investors in emerging industries, making the province an attractive hub for operations, whether for an established company or a startup. The effect of this is evident in the success of industries like fintech and cannabis but is most apparent—and newsworthy—through the province’s regulations for online gambling.
From Grey Market to Global Model: The iGaming Rollout
In the 2024-25 fiscal year, iGaming Ontario generated $63 billion in wagers and $2.4 billion in gaming revenue, demonstrating the financial success of the controversial rollout of the online gambling marketplace. This success has only been shaped in recent years; before April 2022, online gambling remained a legal grey area in Ontario. Digital gambling wasn’t prohibited, but it lacked regulation.
- The legal grey area previously led online gamblers in Ontario to rely on offshore gaming sites.
- These offshore sites were not held to player safety or data security standards, putting users’ information and well-being at risk.
- For the province, this also meant lost revenue that could have supported:
- Health funding
- Education funding
- Ontario addressed this by developing a regulated digital gambling market with strong licensing policies for online casinos and platforms.
- The regulated market launched in April 2022 and has already generated billions in revenue within just a few years.
The development of these regulations has led to a marketplace with dozens of operators and gambling sites to choose from, as well as a plethora of review sites that help players stay informed before sharing their personal information with the operators they are considering signing up with. As a result, it has significantly increased player trust in online gambling platforms, which must be licensed and meet player safety standards regarding problem gambling and securing the use and storage of personal information. Meanwhile, it has provided operators with opportunities to grow awareness of their platforms and increase their revenue.
Regulation as a Growth Engine
Source: Freepik
The regulation of online casinos and other industries like cannabis or AI may sound like it would restrict growth and innovation opportunities, but Ontario has demonstrated this is far from the truth. Instead, the development of a stable and trustworthy framework enables consumers to enter emerging markets confidently and for operators to develop healthy competition that propels innovation. The marketplace has attracted global operators to the province and supported businesses like affiliate marketing firms and compliance tech operators, shaping a diverse and dynamic industry and creating jobs.
- The cannabis industry has had similar success for Ontario’s economy.
- In 2024, over $2 billion worth of cannabis was sold.
- The industry has created 48,000 new jobs since legalization.
- Like online gambling, cannabis regulations have enabled a diverse ecosystem of businesses, from small enterprises to large international companies.
- These regulations were designed to:
- Mitigate underage use
- Protect users
- Offer safe, licensed options that consumers can trust
- This regulatory framework:
- Funnel revenue back to the province
- Provides Ontarians with more consumer choice
- Supports long-term industry growth
These two key industries have displayed how the development of licensing isn’t a hurdle to operations but is instead an asset that helps build consumer trust, revenue, and long-term success.
The Business Culture of Oversight
Ontario’s approach to economic growth by implementing regulatory systems has shaped a reputation for prudence that leads to long-term stability. The approach has enabled a wide range of industries to find footing in the province, with the potential for long-term stability and payoffs. Frameworks from iGaming are influencing other industries to facilitate a thriving marketplace that caters to Ontario consumers and enables operators to find success.
For instance, the emphasis the online gambling industry places on secure operations and data handling translates well to other regulated digital markets, like those in AI and fintech. They help establish clear policies regarding the safe collection and use of personal data, preventing criminal activities like money laundering, and protecting against cybersecurity risks. These enable companies, whether they’re an online casino operator or a banking service provider, to show Ontarians how they’re protecting them when delivering their services, enabling them to build trust and long-term relationships.
Conclusion: Prudence and Consistency Pay Off
The cautious approach that Ontario has taken for emerging industries is practical for all parties involved. By emphasizing these efforts, the province is shaping consistency and stability to be a self-reliant economy that supports provincial projects, businesses, and Ontarians. While iGaming Ontario stands out as a shining example of this, it’s far from the only success story in the province, and more success stories are likely to follow.
