Vancouver-based eSports company ESE Entertainment has launched a new iGaming division of its business, which will focus on expanding its existing business products and services to online gaming companies.
ESE is an entertainment company focused on providing technology to the video gaming and eSports industries. However, it is now looking to branch out into online gaming services and will aim to engage with the market through strategic partnership and new hires and advisors.
That move comes amid significant movement in the Canadian online gaming industry. Ontario’s new regulated online gaming and betting market finally got off the ground on April 4, with over two dozen operators and even more suppliers registered.
The new division, which will promote the company’s video games and esports offerings, will be led by Konrad Wasiela.
“The announcement that Canada will launch a new iGaming market in Ontario isgroundbreaking,” said Konrad Wasiela, CEO at ESE. “This opens an opportunity that cannot be ignored. Our company has the infrastructure and solutions to provide tier-one services to iGaming companies around the world. We believe this is an excellent opportunity for ESE to expand its offering into iGaming and leverage our complementary expertise in esports and gaming.”
Leading online gaming operator FanDuel has reached what the companies call a “first-of-its-kind” multi-year agreement with TSN to introduce its leading sportsbook to Canadian sports fans.
A news release explains that FanDuel will be the official sportsbook partner for TSN, starting first in the regulated Ontario market, which opened on April 4 and in which FanDuel is one of the first licensed private operators. The deal will provide an opportunity for FanDuel to undergo scaled expansion into other Canadian provinces and territories pending regulation.
Specifically, FanDuel will deliver its global expertise in mobile sportsbook and casino operations across TSN through original content and innovative digital products. The FanDuel Sportsbook will be the exclusive provider of sports odds across TSN programming and will have multiple “deep and meaningful integrations” across TSN platforms, including in-game broadcasts, digital marketing, mobile apps and co-branding opportunities.
TSN will also highlight a variety of FanDuel’s online gaming formats, notably its Same Game Parlay™ bets, as well as its leading casino platform and free-to-play games.
“Bringing our industry-leading sportsbook platform to Canada is a watershed moment for FanDuel,” said Dale Hooper, General Manager, FanDuel Canada. “Partnering with Canada’s most iconic and trusted media company was integral to our strategy of delivering gaming content to passionate Canadian sports fans in the most entertaining and responsible way possible.”
“FanDuel is the undisputed leader in sports betting, and with the launch of sports betting in Canada they were the clear choice for us as a sportsbook partner,” said Stewart Johnston, Senior Vice-President, TSN. “FanDuel delivers an entertaining, customer-centric, responsible gaming experience with attractive odds that Canadian sports fans will want to engage with and we believe that combining their sportsbook with our expansive portfolio of live sports properties will not only deliver the exciting content that our passionate fan base demands but will provide new opportunities to expand the TSN brand.”
FanDuel and TSN, two giants of their industries, are just the latest example of the kind of collaborations that are occurring between gaming operators and media in Canada as the country’s sports betting market continues to undergo a facelift. Online betting operators are prohibited from enticing customers with advertisements of sign-up offers and bonuses, and are instead focusing on partnering with big names.
Late last week, for example, sports betting information and news website Covers and Canadian media giant Postmedia announced a content partnership around sports betting. Meanwhile, in another example, Torstar partner NorthStar Gaming has signed up veteran Canadian sports broadcaster Rod Black to be an ambassador.
Paysafe, a leading specialized payments platform, has announced that it has gone live in Ontario’s expanded regulated online gaming market, which launched on April 4, to provide payment support to private iGaming operators in the province.
Paysafe has longstanding payments partnerships with the majority of Canadian provincial government-operated iLottery and gaming brands, and is now powering payments for leading operators in Ontario’s new private market.
The company, which has roots in the city of Montreal and over two decades of experience in iGaming payments, has processed online payments for the Ontario Lottery and Gaming Corporation (OLG)’s OLG.ca since its launch in 2015.
Now, it has bolstered its presence in Canada’s most populous province by extending its multi-state U.S. payment partnerships with a range of operators into the Ontarian market. Among others, these partners include PointsBet Canada and theScore Bet, both of which launched their offerings once the curtain was raised in Ontario on April 4.
Through a single, streamlined integration with Paysafe, these online sports betting and casino brands will be able to offer Ontarian players deposit options via credit and debit card, with all transactions processed seamlessly by Paysafe’s payment gateway. The gaming brands’ connectivity to Paysafe will also allow them to offer players the full suite of the company’s alternative payment methods, including its eCash solutions.
Paysafe is scheduled to unveil new iGaming payments products and operator partnerships for the Ontario market in the coming weeks. Its integrated platform offers solutions geared toward mobile-initiated transactions, real-time analytics, and the convergence between brick-and-mortar and online payments.
Zak Cutler, CEO of North America iGaming at Paysafe, said in a news release: “Today’s launch of the new, expanded Ontarian iGaming market marks a milestone for the North American industry and our global company, which has its origins in Canada. Ontario will likely rival the largest U.S. state iGaming jurisdictions when it reaches maturity, and we look forward to facilitating payments for operators and their Ontarian customers to help the market grow to its full potential.”
After years of advocacy and months of regulatory and operational preparation in all corners, the Ontario online gaming and betting market officially launched at 12:01 a.m. on Monday, April 4.
Thirteen private online gaming and betting sites were fully registered and licensed to operate in Ontario immediately once the market opened, and that remained the case as of the morning of April 7.
But today is not just about those brands and their work; the launch of the Ontario online gaming and betting market is the culmination of a sustained and carefully considered effort that has crossed industries and political party boundaries.
From sustained advocacy to previous proposed bills around regulated gaming being kiboshed at various stages of the process to finally getting legislation over the line last summer, the journey to Ontario being the first province to open a liberalized regulated market has been long and at times arduous.
Now, for the first time, private-sector operators of online sportsbooks and casinos can legally take bets from within the province, offering Ontario’s punters a wide range of platforms and betting options in addition to the PROLINE offering of the government-owned Ontario Lottery and Gaming Corporation, which has been the sole legal online operator since Bill C-218’s enacting in August.
Celebrations in the province
Monday morning was marked by celebrations from the industry.
Numerous licensed operators, including theScore Bet, PointsBet, and FanDuel, tweeted early during the day to officially confirm their launch, and the industry gathered in person in Toronto.
“This is a monumental day that establishes Ontario as an international leader in online gaming,” said iGaming Ontario (iGO) executive director Martha Otton in a news release. “After years of anticipation culminating in historic legislation followed by months of hard work by all stakeholders, we have reached today’s launch of a legal internet gaming market out from under its previous grey market standing.”
Speaking at a curtain-raising event at the Toronto Stock Exchange, Canadian Gaming Association (CGA) President and CEO Paul Burns took a moment to reflect on what it all means.
“The CGA believes the introduction of a regulated gaming marketplace allows the province of Ontario to reset its priorities for the gaming industry — online, land-based, and charitable gaming — to encourage competition while incentivizing capital investment, job creation, and economic growth. We support the government’s objective for Ontario’s iGaming model: to establish a competitive iGaming market that fosters exciting gaming experiences while protecting consumers and keeping Ontarians safe.”
Long cited as a key motivation for establishing a regulated Ontario online gaming and betting market is to eradicate the grey market of operation and bring revenues in-house. The Ontario government said last July that Ontarians were gambling nearly $1 billion a year over the internet and that around 70 per cent of that was via grey market websites.
“As of today. there will be no more grey market in Ontario; only black,” Burns said, to applause. “With regulations in place, Ontario finally has the tools to deal with unlicensed operators.”
Ontario is expected to generate approximately $800 million in gross gaming revenue from online gaming this year. Deloitte Canada estimates the legalization of single-event sports betting in Canada could grow to close to $28 billion within five years, with Ontario expected to rank second behind only New York in terms of sports betting revenue.
Burns added that the province can use regulated iGaming to encourage companies to invest in Ontario and its workforce, as well as encourage growth of the numerous valued technology companies already located in the province.
A competitive market
As of the morning of April 7, the iGO website lists the following sports betting sites as licensed to operate immediately, all of which entered the market on Day 1:
More have also been approved to operate subsequently, such as Annexio’s LottoGo brand and Fitzdares, but are not quite ready to go from the kick-off. That field is expected to broaden more in the coming days and weeks with more than 30 thought to have applied for iGaming registration and 27 registered as of April 3. Some notable names, including U.S. giant DraftKings and European mainstay bwin, are yet to get off the ground.
Those include the likes of Toronto-based Bragg Gaming, which is supplying 888; Evolution, which is working with numerous licensed operators such as 888, BetMGM, LeoVegas, Rush Street Interactive’s BetRivers, and theScore Bet; and Gaming Realms, which is working with the likes of Rush Street Interactive, BetMGM, and Kindred. Myriad others are also active, including Vancouverian company FansUnite, Kambi, Scientific Games’ Light & Wonder rebrand, Everi, FSB, Playtech’s Quickspin, and many more.
Receiving a license from the Alcohol and Gaming Commission of Ontario (AGCO) is not the final step for operators; they must execute an operating agreement with iGO before they can legally go live, as well as satisfy other regulatory conditions such as achieving the Responsible Gambling Council’s RG Check accreditation.
“To complete these steps, these organizations will have met rigorous standards of game integrity, fairness, player protections and social responsibility,” the iGO website says. “Their sites will have controls preventing underage access and measures to enable more responsible gambling. They have entered legal agreements ensuring compliance with applicable laws, including anti-money laundering.” The iGO indicates the process of registering with the AGCO registration and executing an iGO operating agreement could take at least 90 days.
iGO said prior to the market opening that online sportsbooks launching in Ontario must first settle any action they’ve taken from players in the province, including outstanding futures bets. Any operators not licensed by the AGCO as of April 4 have been required to cease operating in the province.
Sports betting information and news website Covers and Postmedia Network have announced a content partnership that combines the two companies’ expertise to offer insights for Canada’s growing audience of betting enthusiasts.
A press release says that Postmedia’s audience of more than 17 million monthly unique visitors will gain access to expanded betting content from Covers “to help create smarter sports bettors”. Content will be available across Postmedia news brands and complement Postmedia‘s existing sports coverage and sports betting offerings.
“Our agreement with Covers is a great complement to our already strong sports coverage providing expert insights from the growing area of sports betting,” said Mary Anne Lavallee, EVP, COO and Interim CFO, Postmedia. “Postmedia is pleased to provide our broad and highly engaged audiences with in-depth insights as they explore this new area of sports entertainment, arising from the expected changes to legislation.”
Andrew Garven, Head of Marketing at Covers, added: “We’re delighted to be joining forces with Postmedia and excited to work together to bridge the gap between traditional media and sports betting in Canada. With 27 years of experience in the industry, Covers has become a trusted resource for over 20 million users annually. Canadians can therefore have confidence that they will be receiving high-quality, refined and engaging content with one broad intention; to create smarter sports bettors.”
Postmedia’s sports community will benefit from expanded insights from Covers, which boasts a roster of industry-leading analysts and a best-in-class offering for odds, picks, and guides.
In addition, Postmedia’s new sports betting newsletter, Closing Lines, launches this week ahead of Ontario’s regulated online gaming market opening April 4.
The Alcohol and Gaming Commission of Ontario has issued several more supplier licenses with just days to go before the launch of the regulated Ontario market on April 4.
While, as of March 31, 15 private operators have been licensed to rival Ontario Lottery and Gaming (OLG) in Ontario’s regulated market, the supplier market is dozens strong and growing almost by the day.
Raymond Kahnert, a spokesman for the Alcohol and Gaming Commission of Ontario, told Gambling.com that 41 suppliers were registered to operate by late last week. More than 700 online games have been certified for use in Ontario.
Since then, numerous more suppliers have been added to the list.
Those include Aspire Global-owned aggregator and content provider Pariplay, which says it already has deals in place with a number of operators and partners across the province. The company’ is already live in Alberta supplying content to Alberta, Gaming, Liquor and Cannabis’ PlayAlberta platform.
Slot developer Blueprint Gaming has been approved to launch over 50 games to operators and players, including titles such as The Goonies, ted, Sausage Party, and an adapted version of its Deal or No Deal-branded games.
Swedish Slot specialist Quickspin, whose parent company is gaming tech giant Playtech, has also been granted a license, as has Relax Gaming, for which Ontario will represent the first entry into the North American market. Relax plans to begin rolling out in the United States later this year.
Global B2B sports betting and iGaming service provider FSB has also been registered, allowing it to work with approved operators in the province and provide its omnichannel sportsbook product and online casino aggregation.
High 5 Games’ slot titles and casino-style games will be integrated across Game Play Network’s B2B network and B2C website and app in a new licensing agreement between the two companies.
High 5 Games’ CEO Tony Singer said: “GPN offers a unique innovative product, and we’re pleased to be one of the first major slot makers to ink an agreement with the company. Through this integration, our slots will be in front of even more eyes in previously untapped markets. It really is the perfect fit.”
High 5 Games, which boasts a library of over 500 casino games as well as its own full casino platform, recently obtained its Gaming-Related Supplier License from the Alcohol and Gaming Commission of Ontario, which will allow it to offer its games to AGCO-approved operators within the province.
Meanwhile, GPN already operates in 22 US states with the opportunity to launch in up to 40 in total.
David Marshall, GPN’s Chief Executive Officer, added: “We are thrilled to be working with High 5 Games to take our game catalogue to the next level. As one of the industry’s leading game developers, they have their finger on the pulse of what players want and a deep portfolio of hit titles that both our b spot [app] players and our B2B customers are going to love.”
Loto-Québec will supply iGaming content developer Gaming Realms’ content across the province.
The deal will see Gaming Realms roll out its Slingo portfolio in Québec with the lottery corporation. The games will be made available through the company’s North American distribution partner, Light & Wonder, which has been licensed as a supplier in Ontario’s regulated online gaming market. Alchemybet, a subsidiary of Gaming Realms, has also been licensed to operate in Ontario.
Gaming Realms is a studio that delivers online gaming content, bingo, slots, and other casual games by utilizing its proprietary data platform. Its Slingo brand is already available in the Québec lottery market, with several million Slingo scratch tickets sold each year.
“Hot on the heels of being awarded our Ontario iGaming license, we are delighted to have gone live with Loto-Québec,” said Gaming Realms chief financial officer Mark Segal. “2022 is set to be an exciting time for the Company as we move to establish a strong foothold in the Canadian market and work towards our longer-term plan of expanding further into the North American market.”
Stéphane Martel, Loto-Québec head of products and innovation, added: “Gaming Realms’ games are a great addition to our growing online casino game portfolio. Our players will enjoy this new offer.”
Loto-Québec also recently agreed to become the first Canadian lottery to offer games from Evolution-owned games studio Red Tiger on its Espacejeux.com platform.
In the new world of Canadian online sports betting, social media giants like Twitter will likely have a major role to play.
A recurrent theme in the discussions around launching sports betting both prior to and since the passage of Bill C-218 has been that live, in-play offerings will be highly sought-after, particularly if the evidence of the development of the US is anything by which to judge.
During a sports game — be it hockey, basketball, soccer, whatever — the odds of the winner, the highest points scorer, and other various wagers can shift dramatically. In that climate, Twitter’s minute-by-minute nature will be valuable for fans and bettors.
“Twitter is a sports bettor’s best friend,” Conor Clarance, Head of Sports at Twitter Canada, told The Parleh. “It’s the only place where you can get an information edge.
Twitter Canada research shows that 70 per cent of sports fans agree that the site helps them keep up-to-date with what’s happening in their favourite sports, noted Conor Clarance, Head of Sport at Twitter Canada. A growing segment of this sports conversation is around sports betting, focused on tips, strategies and other essential info for fans looking to wager. Twitter users are thought to be 51 per cent more likely to have used a betting, gambling, or lottery website or app than non-users.
“Twitter is a sports bettor’s best friend,” Clarance toldThe Parleh. “It’s the only place where you can get an information edge.
For operators themselves, too, there is huge potential for promotion, advertising, and brand differential.
So far, that two-way revenue potential has been limited to OLG. Grey-market operators are allowed to have accounts, but are unable to spend advertising dollars or boost posts on the platform. That is going to dramatically change with the influx of operators getting the stamp of approval from the AGCO and iGO and joining the chase for customers.
In a climate when sportsbooks, shorn of the ability to offer lucrative sign-up bonuses or offers, are relying on things such as celebrity star power to differentiate themselves from the significant pool of competition, they will be looking for guidance around the promotion of their products on the social networking site. Meanwhile, Twitter itself will spy an opportunity to increase revenue by doing deals with operators. All of this, of course, must fall entirely within the regulations set by the AGCO and iGO.
For its own part, Twitter is certainly embracing the potential. Earlier this year, with an eye firmly on the Ontario market launch on April 4, it partnered with OLG for #OLGGamePlan, a new interactive digital sports betting series. which is Twitter’s first brand-led sports betting show in Canada and OLG’s first-ever sports programme.
Ultimately, as with most things in the gaming and betting industry, the symbiotic relationship between social media and sportsbooks will likely evolve in real-time depending on conclusions drawn from customer behaviour.
“We are excited to see what kind of innovation will happen,” added Clarance to The Parleh. “Who’ll post live odds on Twitter as soon as something happens within a game. In Ontario, you’ll have all of these brands in one place, so how do they choose to innovate and compete with each other?”
Rush Street Interactive has appointed former Alcohol and Gaming Commission of Ontario executive Bruce Caughill as Managing Director, Canada.
Caughill joins Rush Street prior to the planned launch of the company’s leading BetRivers online casino and sportsbook brand in Ontario when the province’s regulated online gaming and betting market opens on April 4, 2022.
Caughill was previously the Chief Legal Officer at the AGCO, where he oversaw all legal matters and played a key role in developing the legislative and policy infrastructure for Canada’s first legal regulated iGaming industry, says a Rush Street release.
In total, he has over two decades of experience in Canada’s commercial gaming industry, having previously served as CEO/President of Caughill Management Consulting and Vice President/General Counsel, Corporate Secretary, and Chief Compliance Officer at Falls Management Company, operator of Niagara Casinos. In 2008, he received the Canadian Gaming Association’s national award for industry leadership and outstanding contribution.
As the Managing Director of the Canadian Rush Street team, the Ontario native will provide leadership and support in the commercial and administrative activities associated with the company’s pursuit of business opportunities in the country.
“We welcome Bruce who, with his unparalleled legal, operational and regulatory expertise in Canada’s gaming industry, will provide strong insight, guidance and counsel in this exciting new online market,” said Richard Schwartz, Chief Executive Officer of Rush Street Interactive. “Bruce’s proven leadership capability, extensive experience and strategic thinking make him a great addition to RSI.”
“I am excited to bring my years of experience in Canadian gaming to support RSI’s pursuit of opportunities in Canada,” said Caughill. “I am particularly excited at the prospect of supporting the many local Canadian employees as the company establishes its Innovation Hub here.”
Meanwhile, Rush Street Interactive announced on March 31 that it has become “the first US-based online casino and sports betting company” to receive the Responsible Gambling Council’s RG Check accreditation for its BetRivers and PlaySugarHouse sites. BetRivers has been licensed to operate in Ontario. The company added that it has achieved accreditation more than two years ahead of iGO‘s mandated schedule for Ontario iGaming operators.
