PointsBet’s new parent company MIXI is planning for life in not only a regulated iGaming market in Alberta, but also one in B.C.
MIXI CEO and President Koki Kimura said on an earnings call for the Japanese company that the Canadian market is primed to expand “rapidly” as regulatory frameworks are discussed in multiple provinces beyond Ontario.
In an investor presentation, MIXI added that with Alberta expected to launch a regulated market in the coming year (PointsBet projects spring 2026) and other provinces “expected to follow,” Canada is a market with high potential for PointsBet. While PointsBet Canada’s operations are currently a loss-maker, its revenue has been growing and the EBITDA gap shrinking year by year.
“The [Canadian] market for both sports and iGaming is expected to grow at over 30% per annum,” stated MIXI, which acquired the majority shareholding of PointsBet in September. In a footnote in that presentation, it clarified that number assumes the launch of regulated online gaming in both Alberta and B.C.
Lobbying efforts continue in BC
While Alberta is in the process of setting up an iGaming conduct-and-manage organization and consulting on potential rules and regulations for the commercial online gambling market that it legalized this year, no such progress has been made on the west coast.
But several online gambling companies and industry lobbyists continue to push the B.C. government to work towards iGaming regulation, including the Canadian Online Gaming Alliance (COGA), whose members include companies affiliated with BetMGM co-owner Entain, bet365 and Betway and Jackpot City parent Super Group. For now, the British Columbia Lottery Corporation’s PlayNow platform remains the only government-approved option.
Troy Ross, a longtime industry lobbyist who represents COGA, presented research data at the Canadian Gaming Summit in June that suggested that only around one-quarter of B.C.’s online gambling play is being done legally with BCLC; the other 76% is on unregulated sites, he said, amounting to hundreds of millions in lost revenue potential for the government. The Canadian Gaming Association (CGA) and Ipsos estimated that around 60% of B.C. gamblers used unregulated sites. H2 Gambling Capital data shown to Canadian Gaming Business earlier this year suggested BCLC’s share of the market is more like 47%. Whichever stat you believe, the consensus is that the lottery has a minority.
Industry voices including Canadian Gaming Association CEO and President Paul Burns have suggested in the recent past that the B.C. government could be prepared to have discussions about moving down a path towards regulated iGaming. PointsBet and MIXI appear to be planning for that to be the case.
PointsBet to focus on social betting under MIXI
As for MIXI’s more immediate plans for PointsBet, there seems to be no indication that they will look to offload PointsBet Canada assets. MIXI’s rival bidder betr had planned to sell PointsBet’s Canadian operations to Hard Rock Digital if they had beaten MIXI to buy the Australian operator.
What MIXI does want to do is lean into an area that it feels it specializes in: social betting. MIXI acquired social betting app TIPSTAR in 2020, a platform that lets users not only bet but share betting tips and watch live streams. TIPSTAR has grown strongly in recent years, and Kimura said on last week’s call that he wants PointsBet Canada to embrace that opportunity.
“We aim to establish social betting in Japan, Australia and Canada and become a market leader,” he added. MIXI’s presentation stated that one of PointsBet’s key advantages is branding centered around sports betting “with the younger generation in mind,” citing its own research that suggests that around two-thirds of PointsBet’s customer base in Australia and Ontario are under the age of 35.
Wherever they go next, Kimura is confident that the combination of MIXI and PointsBet’s expertise will lead to good things for the online sportsbook, which also offers online casino play in Ontario.
“I believe the biggest factor behind the success of this M&A was, above all, a strong trust built between the two companies,” he added. “Throughout the deal process, the PointsBet board consistently supported MIXI, stating that MIXI is the most trustworthy partner. Since the start of October, we have been working together under the slogan go together, moving forward as one team.”
