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Super Group enjoys Q4 sports betting & online casino growth in Canada

Super Group has highlighted growth in Canada – with the exception of Ontario – for its sports betting and online casino divisions during the fourth quarter of FY2022.

Overall, Super Group’s sports betting revenue increased by $7.28m (+5%) to $16.47m, with growth in Canada playing an important role.

But its online casino revenue decreased by $4.37m (-1%) to $304.65m, attributed to ‘Ontario regulation transition’ and ‘decline in APAC markets’, though the group noted ‘some growth’ in Canada excluding the province of Ontario, mirroring that of its sports betting division.

Alinda van Wyk, CFO of Super Group, commented: “Super Group remains financially strong, and we continue to run our business profitably while investing in technology and marketing to support future growth.

“We remain focused on operating more efficiently in 2023 in order to improve scale and our operating margins going forward.”

Super Group’s owned sportsbook, Betway, was given permission to operate by the Alcohol and Gaming Commission of Ontario (AGCO) last April, while four of its casino brands – Jackpot City, Royal Vegas, Ruby Fortune and Spin Casino – were approved in June.

Meanwhile, the operator recorded total revenue of $480.8m for Q4 and $1.87bn for the full financial year.

Neal Menashe, CEO of Super Group, added: “Super Group is a leading global pure-play sports betting and online casino company seeking to continually optimize and grow our global footprint, including in the US.

“We continue to efficiently invest in our brand, enhance our technology platform and benefit from our consistent cash generation.”

Coolbet prepares to bid Ontario market farewell in April

Online sportsbook Coolbet has announced that it is withdrawing from the Ontario market next month.

Coolbet will stop offering its services in the Canadian province after Apr. 3, one year after the brand began operating under an iGaming Ontario (iGO) license.

Before that, Coolbet was only available to residents of Ontario via a licence from the Malta Gaming Authority (MGA).

But a transition process will now take place for the brand to leave the Ontario market.

The first step will occur on Mar. 21, when Coolbet turns off all deposit options. Players with low balance left in their account will then have two options; to use up all of the existing funds on bets or casino spins, or to top up the balance to withdraw all of the funds. The minimum withdrawal amounts are $1 (Interac) and $0.01 (Trustly).

Then, on Mar. 22, its casino and sportsbook will close. Bets that cannot be settled by then because the outcome is still unknown will be voided and refunded. This includes futures and in parlays; if any of the outcomes result is not known the part of that parlay will be voided and odds set to 1.00.

Furthermore, any bonus funds will be fully unlocked from wagering requirements on Mar. 23.

The final step happens on Apr. 3, when the coolbet.ca website and mobile app will be shut down.

Coolbet’s statement concluded: “Thank you for all the good times, and always remember…Stay Cool. Bet Responsibly.”

FansUnite completes $3.04m private placement

FansUnite has officially closed its previously announced $3.04m non-brokered private placement, issuing an aggregate of 37.97m units at an issue price of $0.08 per unit.

The Vancouver-based betting and gaming firm first revealed last week, Mar. 6, that it had secured a $2m non-brokered private placement of units of the company, agreeing to sell 13.75m units of the financing to Tekkorp Capital, a company which advises and invests in both public and private companies within the global gaming industry.

Two days later, on Mar. 8, FansUnite announced it was upsizing the private placement to $3m due to “strong investor demand”. The final amount has now been confirmed as $3.04m.

“We are pleased to confirm the successful closing of the financing,” said Scott Burton, CEO of FansUnite. “Led by our newest strategic investor, Tekkorp, the additional capital will allow us to invest in areas of our business where we are seeing impactful revenue growth while executing on our strategy to reach profitability in the near future.”

Insiders, management and employees of FansUnite also acquired 4.3m units, resulting in a total of $1.4m invested into FansUnite by both Tekkorp and FansUnite’s insiders and management.

Each unit consists of one common share in the capital of the company and one common share purchase warrant of the company. Each warrant entitles the holder to purchase one common share at a price of $0.12 per warrant share for a period of 36 months after the closing date of the offering.

Net proceeds from the offering – which is subject to the final acceptance of the Toronto Stock Exchange – are likely to be used for ‘general corporate working capital purposes’.

theScore Bet broadens operations in Ontario via launch of desktop version

theScore Bet is now live on the web after launching a new desktop version of its online sportsbook and casino product.

Previously, the Toronto-headquartered brand was only accessible via its app which proved so popular following the launch of Ontario’s regulated online gaming and sports betting market last April, establishing a “very strong lead” against other mobile sports betting apps for number of downloads after three weeks.

But ahead of the NCAA Men’s and Women’s Division I Basketball Championships starting today, a new version of its online sportsbook and casino product is now available and is compatible with all modern web browsers.

Noah Levy, SVP of Product Management for theScore, commented: “Launching desktop is another example of how we’re continually building out our product to best serve customers.

“The web version increases accessibility, providing another way for fans in Ontario to play with theScore Bet, browse the breadth of available markets and enjoy their favorite casino games.”

The desktop version includes all of the same features, wagering markets and online casino games as the app, and users can now view lines, odds and other content without signing up or logging in.

Ontario remains the only market in which the brand is currently active, following last year’s decision to pull out of the US in order to focus on its efforts in Canada, specifically Ontario, where it became one of the first sportsbooks to go live in the newly regulated market.

HeadsUp consolidates assets ahead of proposed reverse triangular merger

HeadsUp Entertainment has announced it is the subject of a reverse triangular merger with an unnamed company.

The Calgary-headquartered global gaming operator joined forces with Enteractive Media last June to launch multiple revenue platforms in Ontario and six US states, but the firm is now in the process of consolidating its assets alongside a number of previously announced and upcoming new transactions.

This forms part of several corporate finance agreements that will see it move to a high tier exchange.

HeadsUp recently served a ‘mandated quiet period’ under a series of NDAs, but has broken its silence to reveal that it has been identified for the completion of a reverse triangular merger.

The company’s management is now preparing to complete two years of audited financial statements and a registration statement to meet exchange requirements for finalization of the proposed transactions.

This process will also provide the information required by the Alberta Securities Commission to request the removal of the Cease Trade Order in Canada with the submission of these items.

Addressing the merger, HeadsUp explained: “Through the process of completing the audits and registration statement, the company will begin to outline details of multiple transactions including acquisitions, new strategic partnerships and new global product launches that until recently had been under strict non-disclosure commitments.

“Management cannot yet publicly disclose the name of the targeted consolidation vehicle but will make all material disclosures required as it navigates through the corporate finance process, and as required by the various exchanges, through its filings.

“New additions to the management team are also forthcoming which will clarify the scope of the enhanced business model in its multi-pillared monetization plan for the gaming, lottery and media sectors.”

Engine Gaming & GameSquare merger receives Ontario SCoJ green light

The proposed business combination between GameSquare Esports and Engine Gaming and Media has received approval this week from the Ontario Superior Court of Justice.

Announced last December after approval from shareholders of both Toronto-based firms, the arrangement will see GameSquare shareholders own approximately 60% of the combined company, with Engine Gaming shareholders holding the other 40%.

Engine Gaming will acquire all of the issued and outstanding common shares of GameSquare at an exchange ratio of 0.08262 of an Engine Gaming common share for each GameSquare Share.

Going forward, the combined company will trade on the NASDAQ and TSX Venture Exchange under Engine Gaming’s ticker symbol ‘GAME’.

Furthermore, the combined entity is expected to change its name to ‘GameSquare, Inc.’ and retain the ‘GameSquare’ brand globally.

Meanwhile, GameSquare’s CEO Justin Kenna is set to lead the newly merged company, with Lou Schwartz, CEO of Engine Gaming, acting as President.

The Board will keep its formation with Dallas Cowboys owner Jerry Jones and Chairman of Goff Capital John Goff remaining as the largest investors.

Playtech to roll out online casino content in Canada via Hard Rock Digital tie-up

Playtech has announced it has secured a small stake in Hard Rock Digital (HRD), the interactive gaming and sports betting division of Hard Rock International and Seminole Gaming.

The online gaming software supplier has purchased $116.36m of stock in a “low single-digit minority equity ownership” and, consequently, will now deliver its technology solutions and online casino content to Hard Rock Digital in the US and Canada.

Playtech launched in the Ontario market last June through a strategic partnership with NorthStar Bets and, four months later, helped Mansion to deliver its online casino brands in the province.

Last month, Playtech also completed its $12.3m investment in NorthStar Gaming, parent company of NorthStar Bets.

“The Playtech team is thrilled to announce our strategic partnership with HRD,” commented Mor Weizer, Playtech CEO. “Hard Rock International has cemented itself as a marquee name worldwide, not just in gambling, but more widely in entertainment.

“HRD will combine the strength of this global brand with a proven management team, some of whom we at Playtech have known for many years and believe to be among the strongest in the online gambling industry.

“For Playtech, this partnership significantly advances our position in the North American market and is very much in line with our B2B strategy.”

Under the terms of the agreement, Playtech has also committed to supplying Hard Rock’s online casino with its igaming content including its slots, random number generators, and live dealer table games to be deployed across the operator’s existing offering.

“This partnership will act as an accelerator to Hard Rock Digital’s planned strategic initiative to expand its online gaming offerings to international markets, becoming the first operator with a global omni-channel offering under a singular, irreplaceable brand,” added Jim Allen, Chairman of Hard Rock International and Chairman of the Board of HRD.

“This announcement only reinforces our commitment to lead innovation in the gaming industry and expand the ‘Hard Rock’ experience worldwide.

“We look forward to providing an authentic, digital experience for Hard Rock’s global fan base within a comprehensive, omni-channel offering.”

Insider Knowledge at Canadian Gaming Summit: ‘Leaders’ Track Showcases Top Operators and Regulators

Apart from a vibrant exhibition showcasing various products and services and numerous networking opportunities, the Canadian Gaming Summit — the country’s premier gaming and betting event — will host a conference with an unrivaled line-up of first-rate speakers, handpicked by the event organizer, SBC.

The ‘Leaders’ conference track, which will take place on June 14 at the Metro Toronto Convention Centre, is an undisputed highlight of the event’s 26th edition, as it spotlights the most influential decision-makers, thought leaders, and innovators in the Canadian gaming industry.

Attendees will gain unparalleled insights from Canada’s most successful operators, including representatives from PointsBet, BetMGM, Kindred, and FanDuel. Furthermore, event visitors will have the opportunity to hear directly from regulators and exchange ideas with their peers in the gaming industry.

The opening panel of the ‘Leaders’ conference track will delve into Canada’s potential to become an international hub for iGaming innovation. Esteemed industry executives Scott Vanderwel (CEO, PointsBet Canada), Amanda Brewer (Country Manager Canada, Kindred), Dale Hooper (General Manager Canada, FanDuel), and Scott Woodgate (VP Canada, BetMGM) will explore how Canada can leverage its status as a well-established tech hub and center for global investments to emerge as a worldwide center for iGaming innovation.

Drawing upon their experiences as established operators who were among the first to obtain legal operator titles in the Canadian market, the panelists will compare Canada’s situation with that of US states and discuss how local operators can compete with larger organizations for market share. In addition, the speakers will discuss the prospects of regulatory collaboration across jurisdictions and examine the potential of other provinces outside Ontario to chart a course.

The second panel is dedicated to regulators, who will reflect on the key takeaways from the opening of the province of Ontario and explore how these lessons can be applied to other provinces and Canadian territories. The panel will feature Martha Otton, Executive Director of iGaming Ontario, a subsidiary of the Alcohol and Gaming Commission of Ontario that was established to regulate the new market, and Tom Mungham, Chief Executive Officer of the AGCO.

The panelists will examine how various provinces across Canada can collaborate and align on best practices and expansion tactics. They will also analyze the accuracy of the predictions that were made when the market opened in Ontario. With their firsthand experience in the regulation of the industry, the speakers will provide invaluable insights into how Canada’s gaming sector can continue to thrive in the years to come.

The closing keynote fireside chat will feature Ray Pineault (CEO, Mohegan Gaming & Entertainment) and Ilkim Hincer (EVP & Chief Legal Officer, Hard Rock International). The experts will explore the convergence of iGaming, land-based gaming, and provincial lotteries and elaborate on how the established land-based businesses and lotteries can capitalize on their knowledge by translating their core values to digital platforms. The speakers will also discuss the importance of partnerships with regulators and First Nations and the potential of simultaneously fulfilling the needs of various audience clusters through omnichannel experiences.

Rasmus Sojmark, CEO & Founder of SBC, said: “There’s a lot to learn in Canada, especially since Ontario became the first province in Canada to regulate online gambling, legalizing what was previously a grey market. Ontario’s regulation of online gambling has set the stage for the Canadian gaming industry’s growth and has already provided valuable insights that could be applicable to other provinces and territories in Canada.

“There are no better candidates to educate the industry on the potential and the lessons learned than industry leaders representing some of the biggest players in the region and the regulatory bodies who hold registered operators to high standards of responsible gambling, player protection, and game integrity. We’re excited to host some industry titans who will share their insights with the audience.”

There will be three conference stages running simultaneously at the Canadian Gaming Summit. The first stage will host the following tracks: “Leaders” and “Land-based” on June 14 and “Growth and Leadership” on June 15. The second stage will host the “Sports Betting” track on June 14 “Affiliates and Advertising” track on June 15, while the third stage will focus on “iGaming” on June 14 and “Payments & Compliance” on June 15.

Visit the Canadian Gaming Summit website to access the conference agenda and purchase your tickets at the Early Bird discount of CA$795, a CA$200 saving from the regular full event ticket price. The Early bird deal expires on April 14, 2023.

Operators and affiliates with an interest in the Canadian gambling market can register for free. To qualify, operators must fill in this form, while affiliates need to fill in their information at the following link.

For exhibition and sponsorship opportunities, please contact sales at [email protected]

Tiidal agrees $13.25m sale of Sportsflare to Entain

Esports firm Tiidal Gaming has confirmed this week that it has entered into an agreement to sell all of its shares in esports betting developer Sportsflare to Entain.

Under the terms of the deal, the Toronto-based organization will exchange all of the issues and outstanding shares of its New Zealand subsidiary for consideration of $13.25m in cash. The purchase agreement includes payment of a $500,000 termination fee that is payable by Tiidal Holdings to Entain in the case of ‘certain terminating events’.

The move arrives less than seven months after Tiidal’s Board decided to focus its efforts and resources exclusively on its Sportsflare technology division and ‘embark on the process of divesting its competitive esports team assets’.

Thomas Hearne, CEO of Tiidal, commented: “I am incredibly proud of what the Sportsflare team has done over the last year. Given the capital markets environment, we believed it was best to find a great home for Sportsflare in order to maximize value for Tiidal shareholders.

“Sportsflare will be a great fit with Entain’s strong presence in the industry and our board of directors is confident that Sportsflare joining Entain is the best long-term solution for its employees and partners.”

The deal is still subject to shareholder approval with a meeting to consider and approve the transaction expected to take place on Apr. 26.

Directors, officers and certain shareholders holding an aggregate of 31,024,382 common shares (37.29%) have signed customary voting support agreements to support and vote in favour of the transaction at the meeting.

Furthermore, the Board of Directors has approved the purchase agreement and the transaction and has unanimously recommended that the shareholders vote in favour.

BDO Canada LLP has provided a fairness opinion to the Board of Directors of the Company, ruling the consideration to be ‘fair, from a financial point of view, to the shareholders’.

Meanwhile, the parties have entered into a definitive loan agreement with Ladbrokes Group Finance, an affiliate of Entain, in connection with a secured credit facility in the aggregate principal amount of up to $1.41m.

AGCO begins search for new CEO after Tom Mungham announces retirement

The Alcohol and Gaming Commission of Ontario (AGCO) has confirmed it is looking for a new Registrar and CEO following news of Tom Mungham’s impending retirement.

Mungham joined the AGCO in 2006, initially serving as its Director of Licensing and Registration before becoming CEO until 2020, when the organization added the role of Registrar alongside his existing title.
But he is set to depart the company in the fall, leading the AGCO to enlist an executive search firm to support its search for his successor.

Lalit Aggarwal, Chair of the AGCO Board of Directors, commented: “On behalf of the Board and staff, I want to thank Tom for his tremendous contributions throughout his 17-year career at the AGCO, and most importantly, for his exceptional leadership as our Registrar and CEO.

“We extend [to] him our deepest appreciation for his guidance in fulfilling AGCO’s mandate with unwavering commitment to the values of integrity, respect, accountability, and public interest.

“We wish him the very best for this next, well-earned chapter.”

Mungham’s service at the AGCO has included initiatives such as the modernization and expansion of land-based casinos, the regulation of OLG lotteries, the expansion of the charitable gaming sectors and the Ontario Racing Commission’s merger with the AGCO.

Most recently, he oversaw the development and regulatory oversight of Ontario’s new online gaming market – a regulatory framework that earned international recognition, receiving the International Association of Gaming Regulators’ Regulatory Excellence Award in 2022.

Diversity, Inclusion, and Accessibility (DI&A) have also been centre points under his leadership, and the agency is currently implementing a ‘strong, meaningful’, multi-year DI&A strategy.

Mungham will continue as Registrar and CEO while the search for his replacement goes on, and he will remain to support a smooth transition until his replacement begins.