Toronto sports betting operators who gain licensure to operate mobile sportsbooks in Ontario will likely be subject to an 80/20 revenue share deal with the Ontarian government. So, Ontario would keep 20% of a private sportsbook’s gross receipts.
Toronto sportsbook tax dollars would go towards funding Ontario’s public programs. Therefore, it will most prominently be in:
- Primary Education
- Secondary Education
- Children’s and Social Services
- Justice Programs
- Other Ontario Public Services
Unlike some American markets, Toronto sportsbook tax revenue won’t go to a special fund. That means they will go into what American states call their general fund. Toronto sportsbook tax revenue will be part of Ontario’s top-line revenue.
Indeed, tax revenue from private companies makes up a small part of Ontario’s total tax revenue. Personal income and sales tax revenue make up over 60% of Ontario’s tax revenue. Private corporation tax revenue only makes up about 12-14% of Ontario’s tax revenue.
Raking in the bets: Ontario sports betting handle could generate $10B in first year | Chris Gerlacher
It’s projected to experience the most growth out of Ontario’s taxable revenue categories from the current fiscal year to the next. Most of that is likely influenced by continued coronavirus recovery. But a small portion of that tax gain will include Ontario’s private sports betting industry launching April 4. Following private sportsbooks into Ontario’s online gambling industry should pull bettors away from the gray market and into Ontario’s legal and taxable market.
Role Of Toronto Sports Betting In Ontario’s Financial Goals
Doug Ford’s party attached an amendment to its license sticker fee bill to move Ontario’s budget deadline from March 31 to April 30. In addition, the Ford government gained an extra month to release the Ontario 2021-22 budget. While the decision to delay Ontario’s budget process is controversial, April’s monthly breakdown could reveal the early impacts of Ontario’s private sports betting industry.
Toronto mobile sports betting will play a small part in Ontario’s larger budgetary goals. Even so, it could end up being one of the most important factors for Ontario’s continued financial recovery from the pandemic.