Ontario, Canada will go live with its regulated sports betting and iGaming market on April 4. It will be regulated by the Alcohol and Gaming Commission (AGCO) and iGaming Ontario, which also created the legal architecture.
Recently a virtual webinar panel held at Brock University included representatives of private operators who will be swimming in this new regulatory sea.
Among the panelists were Amanda Brewer, country manager Canada of the Kindred Group and Nic Sulsky, chief commercial officer of PointsBet Canada.
They discussed advertising, the gray market and responsible gaming. They discussed how other provinces are waiting to see how Ontario’s market operates and whether it is successful before jumping in.
Brewer was enthusiastic about the new market, declaring, “Ontario is such a kickass model. … Ontario is saying we’ll give you almost every single sports betting product, so DFS, eSports, live in-game wagering, and you get to offer iGaming if you want, and you don’t have to tether, so full credit to the Alcohol and Gaming Commission (AGCO). They did a lot of studying, consulted with a lot of different jurisdictions.”
The regulators are processing about 30 license applications to operate in the province. Licenses cost $100,000 and operators pay 20 percent tax.
PointsBet was among the first to apply and to receive its license. It was joined by theScore Bet and Rivalry. Soon to be licensed is Unibet, a subsidiary of Kindred. Another Kindred subsidiary, 32Red may also seek a license.
Sulsky disagrees with Brewer that it’s a good thing to let in so many small fry. He said, “At the same time, the lower the barrier of entry, the more likelihood an operator will get in that doesn’t have above-board intentions as humanly possible.”
The province restrains sports betting advertisements to a large degree. Private operators, while able to advertise websites and use direct marketing to lure customers, can’t use incentive-based marketing. Or use cartoon characters to appeal to minors.
As Brewer explained it, “You can’t give people the impression their lives will be magically transformed by opening up a sports betting account or any kind of gaming account.”
Most patrons will rotate between several sportsbook apps on their phones until they find the one that suits them best, said Sulsky. “Once you get in a sports bettor’s rotation, then the best product will win out,” he said.
Both agreed that the 30 companies will eventually be winnowed out until operators can make a sustainable profit. Brewer said, “Consolidation is going to happen. Folks are either going to fail or get acquired.”
They will also be competing against the government-run PROLINE sportsbook platform that Ontario Lottery and Gaming Corp. (OLG) launched in August.
In the background—but very much there—are the gray market of illegal or offshore wagering sites that amounted to about $14 billion last year in Canada, said Sulsky. He noted that legal operators will try to convert gray market users into legal users.
That is a challenge, because the gray operators have a head start. Sulsky added, “In Ontario, because of the pre-existing gray market, there are dozens of operators that already have databases. A number of U.S. operators that have yet to enter Canada from a sports betting perspective already have DFS databases, poker databases.” That doesn’t include his own company, PointsBet Canada.
Brewer added, “We can all buy the same research reports. We know that Bet365 and Betway have the vast majority of the market share, and Kindred, PointsBet, and theScore and a whole bunch of others are trying to come in. We’re in here for the long haul, here to make a commitment to this market.”
Such companies, in order to operate legally in Ontario, will have to apply for a license by April 4. They will also need to convert their existing base of customers into legal accounts.
Sulsky concluded, “What I’m losing sleep over is my excitement for April 4.” He added, “I know what’s coming. I’m already prepared for how this day is going to be. I’m not scared. I’m excited. I just want the market to open already because I’m sick of watching all the same ads from the same crappy operators we’ve been watching for the last year.”
