Ontario iGaming Sees February Hangover After January Peak

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Tue Mar 31, 2026, 7:00 am ET

Read Time: 3 minutes

Ontario iGaming Sees February Hangover After January Peak

industry

Ontario's regulated iGaming market cooled in February 2026, following a record-breaking January according to iGaming Ontario's recent report. Industry analysts describe the slowdown as a typical "February hangover" effect. Despite the dip, the market remains one of the strongest in North America.

Both Canada online casinos and Canada online sportsbooks showed signs of normalization. However, underlying growth trends continue to support long-term expansion in Ontario gambling.

February Revenue Decline Signals Ontario iGaming Market Cooldown

Ontario recorded approximately $8.7 billion in total wagers in February 2026. That figure represents an 8% drop from January's $9.5 billion record.

Meanwhile, total gaming revenue fell to around $342 million. This marks a 15% decline compared to January's peak performance.

By the Numbers

  • Total wagers: ~$8.7 billion (down 8% month-over-month)
  • Total revenue: ~$342 million (down 15%)
  • Active player accounts: ~1.3 million (down ~2%)
  • Average revenue per player: ~$264 (down ~13%)

The slowdown follows a surge driven by NFL playoffs and seasonal engagement. Therefore, February's decline reflects expected market behavior rather than instability.

Sports Betting Performance Drops After Super Bowl

The Canada online sportsbooks segment experienced the steepest decline during February. Sports betting revenue dropped by roughly 29% month-over-month. At the same time, total betting handle decreased by about 20%.

This sharp decline stems from the end of the NFL season. The Super Bowl generated strong betting volume early in the month.

However, player-friendly results, including a decisive Seattle Seahawks win, reduced operator margins. Consequently, sportsbooks retained less revenue compared to January.

Additionally, February lacks consistent high-profile sporting events. This creates a natural gap before March Madness begins. As a result, sports betting remains the most volatile segment in Ontario gambling.

Online Casinos Continue to Anchor the Market

In contrast, Canada online casinos maintained stable performance despite the overall dip. Online casinos accounted for approximately 85% to 88% of total wagers in February. They generated about $275 million in revenue, even after an 11% decline.

Slots, table games, and live dealer offerings drove consistent engagement. Unlike sports betting, casino activity does not rely on seasonal events. Therefore, online casinos continue to serve as the foundation of Ontario's iGaming ecosystem.

Why Did February Revenue Dip?

Several factors contributed to the February slowdown across Ontario gambling markets. Active player accounts fell slightly to about 1.3 million users. Meanwhile, average spending per player dropped to roughly $264.

This decline reflects a shift in player behavior after the holiday season. Many users likely reduced discretionary spending following January's peak activity.

Additionally, fewer major sports events lowered betting frequency. Together, these trends created a temporary pullback in overall activity.

Year-Over-Year Growth Remains Strong

Despite the monthly decline, Ontario's market continues to expand year-over-year. February wagers increased by approximately 22% compared to February 2025. This highlights sustained growth across both casinos and sportsbooks.

The province now supports dozens of licensed operators and platforms. As a result, competition and product diversity continue to improve.

Outlook for Ontario's iGaming Market

Short-term projections suggest continued volatility in monthly performance. Seasonal trends will likely drive fluctuations in sports betting activity.

However, long-term expectations remain highly positive. Canada online casinos will continue delivering stable, recurring revenue. Meanwhile, Canada online sportsbooks will benefit from major sporting calendars.

Overall, Ontario's iGaming market is transitioning into a mature phase. Growth is stabilizing, but the foundation remains strong for future expansion. Early March indicators already suggest a rebound, driven by strong NCAA March Madness betting activity.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

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