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Connecting with Canadian sports bettors is how to win in the new world

A new gaming industry report from Deloitte Canada based on a survey of Canadians assesses the size of the opportunity presented to the nation’s gaming sector by the legalization, regulation, and expansion of single-event sports betting.

Deloitte Canada estimates the changes to the market could catalyze $28 billion in legal market wagering over the next five years. The report found that around four in 10 (38 per cent) of respondents had either placed sports bets over the preceding 12 months or expressed interest in doing so in the future.

The market will not be homogenous and a one-size-fits-all approach to promoting single-event betting is unlikely to be successful. But regulated sports betting, particularly in Ontario, undoubtedly promises to offer bettors a slate of safe and legal options, and there is huge revenue potential for operators and provinces alike in monitoring and taxing sports betting.

Awareness is still lacking

To maximize that potential, though, several steps are needed. It all starts with the awareness battle.

Possibly the findings’ most eye-catching statistic is that most Canadians don’t even know yet that single-event betting is available to them. In fact, fewer than one in five (19.2 per cent) of Canadian adults are aware that singles betting is now legal.

It’s not surprising that sports betting providers are ramping up their advertising campaigns in recent weeks, and the report concluded that communication and transparency will be key to capturing the potential consumer.

There is certainly interest. 37.1 per cent of respondents expressed eagerness to place legal sports bets, and the main barriers to a lack of interest currently seem to be a lack of information or certainty about the mechanism of doing so. The report concludes that “broadly, there is a need for an education and awareness campaign now that legislation has passed.”

Differing demographics

The crux of the report is that understanding bettors’ perspectives and behaviours will be critical to taking advantage, as will acknowledging that there are three distinct types of Canadian sports bettor: ardent, casual, and potential bettors.

Ardent bettors are a relatively small group, accounting for approximately 8.5 per cent of sports bettors, and bet often and sometimes for higher stakes. The majority are male, more than two-thirds of them are under the age of 45, and over half said they are likely to place single-event bets now that the relevant legislation has been passed.

Meanwhile, casual bettors make up one-third of sports bettors and skew slightly older than ardent bettors, while potential bettors didn’t place any bets on sporting events in the last 12 months but are open to doing so as Canada’s market opens up. This last category makes up the majority (58.5 per cent) of the sports betting community, illustrating the large untapped potential that currently exists in Canada.

With ardent bettors looking for a variety of options and rewards programs, casual bettors tending to hunt for the best odds, and potential bettors attracted to welcome bonuses and odds, tailoring offerings and experiences to each of these groups will be essential for operators and organizations to maximize this potential.

An omnichannel approach

Some of the report’s other conclusions include:

  • Single-event bets appeal most to the casual bettor group, but the likes of micro bets, live props bets, and parlay bets are also sought after by many bettors, particularly ardent bettors.
  • The legalization of single-event betting seems to be driving a spiking increase in online betting, with all three bettor groups wanting to have the option.
  • 50 per cent of respondents said they look for a trusted brand to bet with, ahead of rapid-win payouts (41.7 per cent) and the best odds (34.8 per cent).
  • However, relying on repeat custom may be risky, as only one-eighth (12.9 per cent) said that prior use of a specific brand might affect where they place a future bet.
  • Meanwhile, while celebrity endorsements appeal to brands, only 9.4 per cent of respondents would choose a platform based on them.
  • 32 per cent of respondents said their interest in following or watching sports would increase as a result of the expansion of sports betting.
  • Casual and potential bettors follow their target sports on TV (81 per cent and 85 per cent, respectively), but ardent bettors track a variety of sports, bet more often and at higher amounts, and are much more likely to use digital channels.
  • About 84 per cent of ardent bettors and 75 per cent of casual bettors say they will definitely or probably play other online casino games through sports-betting sites upon legislative changes.

How can operators win in the market?

Deloitte Canada concluded that lotteries and private-sector operators should focus on delivering an omnichannel brand to ardent bettors that offers numerous avenues for betting and engagement, while media organizations should aim to integrate betting into their direct-to-consumer viewing experience without distracting from the games themselves.

Striking a balance may be the key. Providing a personalized approach that reflects how Canadian bettors like to follow and engage with their favourite sports, as well as how they like to wager, can greatly improve operators, advertisers, media organizations, and sports teams and leagues’ odds of winning in this new landscape.

Read the full Deloitte Canada report here.

Playtech regulatory head Charmaine Hogan discusses Ontario leading the way

The CEO of betting software development provider Playtech, Mor Weizer, recently highlighted North America as the company’s biggest focus for operational expansion in the near future. The company has certainly been taking steps in that direction. In recent months, it has laid the foundations for its U.S. business to become one of its biggest growth drivers by doubling revenues in the region.

In Canada, as Ontario gears up to launch its regulated online gaming and betting market on April 4, Playtech has also been striking deals. A notable recent alignment saw it sign on to enter Canada by providing its platform and tools to power made-in-Ontario brand NorthStar Gaming’s online casino infrastructure through its launch in the province. The partnership with NorthStar, which is also uniting with other market leaders such as Kambi and Torstar Corporation, is a signal of Playtech’s intent to be a major player in the market moving forward.

Establishing this position means keeping abreast of regulatory discussions in the market. That’s the remit of Charmaine Hogan, Head of Regulatory Affairs at Playtech, who assesses the rules, regulations, and processes of new and emerging gaming markets and helps to determine the company’s road to entry.

Hogan has helped to oversee Playtech’s recent growth in the U.S. but, naturally, she has been very focused on Canada and Ontario in recent months. Canadian Gaming Business spoke to Hogan about recent developments and how Playtech is positioning itself for a role in Canada’s new gaming world.

*Some responses have been edited and condensed.

Has Playtech learned any lessons in the ever-expanding U.S. gaming market in recent times?

“One thing is that you’re seeing constant evolution of gaming offerings. The U.S. has been a leading example. Coming into 2022, we launched two state-of-the-art live casino facilities in Michigan and New Jersey with key operators. That was a landmark moment for us and for our strategic development in North America. Live casino is an increasingly popular product in its own right; wherever it launches it does fantastically well. We have also signed strategic distribution agreements with the likes of Scientific Games, IGT, Novomatic North America. What is important for us and is working for us is that we have adopted a state-by-state approach in the U.S., and it is working.”

What do you expect to see in Canada, which is leaving the rollout up to the provinces?

“Every market is different, sometimes very different. It’s highly interesting in Canada vs. the States. Many U.S. states went from zero to 60 on gaming, so to speak. But Ontario is not completely new as an iGaming market, and we have been focused on that market for some time now, keenly following the development and getting to know the regulator and the regulations. Ultimately, though, any new regulated market comes with its own challenges, even if there are tried-and-tested examples out there to follow. In an online, technological environment, small adjustments can be very big changes, and there are often no binary answers.”

Narrowing the focus to Ontario, how is Playtech mapping out the road towards the April 4 launch date and beyond?

“Ontario is our obvious focus, as it is for so many in the industry, as it is the province moving with speed. Our priority now is to register as a supplier in Ontario and we will look to support as many licensees as possible in the market. Entering into partnerships with known entities like we did with NorthStar is key, too. We have a slate of key offerings through our IMS player-management software platform, delivering key products like sports betting, online gaming, live casino, and constant support through the provision of that service. We will focus on operators that are moving forward with their operational registration process ahead of the April 4 launch date. You want to hit the ground running and be one of the first to enter the market and do it correctly.

“It’s exciting for us because Ontario is going to be so big. What we – and I think the industry in general – has liked about it is that there has been this ongoing consultation process for so long. That is key because you want to enter the market and you want the regulatory framework to be efficient. It takes an investment to enter a market and you want to recoup that investment, but if that market is not able to onboard a sufficient number of players, the market is not functioning and you are not recouping your investment.”

Given the importance of that consultation process, why was joining the Canadian Gaming Association (CGA) in late 2021 a priority?

“We had eyes on joining the CGA for a while but it’s even more relevant now because you have to be registered as a supplier in Ontario. You want to be close to the processes and the discussions around the development of the market, because those discussions feed into the regulatory processes. The CGA is a known and respected entity with a broad membership base so it brings various views to the table, which can only be a good thing. As well as gaining the knowledge and insight it offers, we want to help share information and research findings to help the discussions be more evidence-led. Collaboration is so important – not just operators, suppliers, and regulators but academics, researchers, politicians, policymakers. The strong emphasis on responsible gambling from the outset has been fantastic, too. You want to not only meet those high standards but to champion them, and that’s what the CGA does.”

What do you see ahead after Ontario raises the curtain?

“Everyone is looking at Ontario and will continue to look toward Ontario on the key items – watching what the province does, the potential mistakes or drawbacks of its model, the successes, the challenges. I expect each province will look at not just the regulators, the operators, and the suppliers but the revenue figures, the number of players that onboard, the repercussions and then make its own decisions as to where it makes sense to go.

“As provinces keep a close watchful eye on Ontario, we will be keeping a close watchful eye on other provinces and will seek to engage constructively wherever we can and as early as we can, and ultimately respect where each province wants to go. To an extent, an online environment will always be a cross-border movement so there will be some commonalities. You want to regulate and regulate sensibly to have players in the market under your control and oversight. We are ready to engage and go with wherever Canada goes. Ontario is a huge, huge opportunity, but it’s just the start.”

Loto-Québec launches first-ever branded slot game

Loto-Québec has announced the launch of its first-ever branded slot game as an extension of its existing partnership with developer 1×2 Network.

The independent software company based in the UK and the crown corporation initially joined forces back in 2020. Now, Quebec players will be able to experience online slots via 1×2’s Branded Megaways, which allows operators to leverage the huge popularity of Big Time Gaming’s revolutionary mechanic by launching their own unique slot.

Branded Megaways provides regional operators with the chance to customize certain design aspects, such as incorporating their own logo or colour scheme. Loto-Québec will therefore get the freedom to create its own personality, character, and voice within the Megaways title.

Loto-Québec has also confirmed a separate partnership with US-based slot-maker High 5 Games that will see it launch the brand’s titles on its online casino platform.

The deal marks High 5’s first foray into the Canadian market. Its most popular titles, including “Secrets of the Forest Extreme” and “Triple Double Da Vinci Diamonds”, are expected to be added to Quebec’s official iGaming site.

In a third content move, the crown corporation has also renewed its existing deal with Instant Win Gaming (IWG) to continue the latter’s supply of InstantGames digital eInstant suite of games. IWG also recently renewed its deal with the British Columbia Lottery Corporation.

Auston Matthews signs with grey-market betting operator

Toronto Maple Leafs star Auston Matthews has become the first active NHLer to sign an endorsement deal with a betting company.

However, as Ontario gears up to open up a regulated sports betting market that would bring revenues back into the province, Matthews’ decision to sign with a grey-market operate may ruffle some feathers.

Per Sports Handle, Matthews has signed with Bet99, a sportsbook in Canada that is not currently licensed to take bets in Ontario. The deal, which is believed to be worth seven figures over three years, will see Matthews promote only Bet99’s free-to-play site in Ontario.

The company’s pay-to-play site is licensed in Canada by the Kahnawá:ke Gaming Commission, a Quebec-based tribal regulating authority. It is currently unknown if Bet99 has applied for an Ontario license to operate.

Matthews joins Canadian UFC fighter Georges St-Pierre as a Bet99 ambassador, and the company is also partnered with the CFL’s Montreal Alouettes and Canadian soccer club CF Montreal.

On Oct. 22, 2021, the National Hockey League Players’ Association had struck a deal with the league that allowed players to pursue advertising and promotional opportunities relating to sportsbooks, under the condition that both single-event betting and those endorsements are legal in the jurisdiction where the betting entity operates.

Quebec casinos will reopen on February 28

Loto-Québec will be welcoming customers back to Quebec casinos from February 28, the crown corporation has announced.

Gamblers will be allowed back to the Montreal, Charlevoix, and Lac-Leamy casinos and the Quebec City and Trois-Rivières gaming rooms from the final day of the month. The Casino de Mont-Tremblant will follow a few days later on March 3.

This announcement comes after the province confirmed loosened COVID-19 restrictions earlier this month.

Loto-Québec will also reactivate the video lottery terminals in the bars when they reopen and will resume Kinzo operations.

Noting that its top priority is “to ensure that its resumption of operations is as healthy and safe as possible for all employees and customers, in a pleasant and entertaining environment”, Loto-Québec confirmed that major restrictions will be in place, including mandatory proof of vaccination and masks.

Capacity at casinos will be limited to 50 per cent.

Quebec had ordered all casinos to shut down by December 20 amid what was then a surge in Omicron variant COVID0-19 cases.

“The alternation between opening and closing periods has been hard on employee morale, while Loto-Québec has been forced to make temporary layoffs,” said Loto-Québec president and CEO Jean-Francois Bergeron, per CTV News. “You’re already affected by the pandemic, but you’re also affected in terms of your job and your income.”

Loto-Quebec considering crypto in the future

Meanwhile, Bergeron hinted the crown corporation is considering introducing cryptocurrency payments for its consumers.

“It will have to be in the cards for the next few years,” he said. “Because the cryptocurrency, I think it is a lever. Banks are becoming more and more interested in it. Governments are getting more and more interested in it… The payment experience is now part of the thinking that organizations that have to interact with consumers are thinking about and putting a lot of effort into.”

Alberta draws interest from major North American market players

Since the Alberta Gaming, Liquor and Cannabis Commission (AGLC) issued a request for proposals (RFP) in December 2021, looking for two companies to work with the province’s casino operators in developing sports betting in the province, numerous major players in the US and prospective Canadian market appear to have expressed interest.

Proposals were accepted until February 14, a date delayed from January 31 due to high interest in the Alberta market.

While it’s unclear at this stage which companies may have actually applied, Covers reports that the RFP’s list of “interested vendors” includes some of the biggest brand names in sports betting, such as BetMGM, Caesars, DraftKings, and FanDuel. Meanwhile, PointsBet has also recently expressed its desire to focus on Albertan opportunities after receiving registration for the Ontario market.

Joining that list are prominent technology companies like IGT and Kambi, as well as several Canadian lottery corporations as well as various other types of businesses and service providers.

AGLC is aiming to launch the new retail and online sportsbooks later in 2022 and will continue its vetting and evaluation processes over the next several months.

“Currently, AGLC does not announce the number of organizations who submitted proposals or their identities,” said Karin Campbell, manager of communications at the agency, per Covers. “As AGLC awards the contracts to the successful proponents, an announcement will be made communicating the vendors to the public. That announcement is expected in the second half of 2022.”

Currently, the only authorized sources of sports wagering in Alberta are AGLC’s PlayAlberta website and Western Canada Lottery Corp.’s games offered via certain brick-and-mortar retailers.

AGLC wants to provide a core betting service that could be used by the province’s 28 casinos in the form of retail and mobile sportsbooks and could potentially be adopted by the province’s professional sports franchises down the line. That set-up would be unique in Canada, where most provinces have allowed their government-owned lottery and gaming corporations to act as the only legal provider of sports betting, but would be distinctly different to the open model in the works in Ontario.

Horse racing ready to be a major sports betting player, says Woodbine CEO

As Ontario gears up to launch its regulated online gaming and sports betting market on April 4, Woodbine Entertainment Group CEO Jim Lawson is adamant that racetracks and entertainment centres are ready and waiting to be a key part of the rollout.

“We’ve got the deepest physical sportsbook localities in the entire province when you think of Woodbine, Mohawk, Greenwood, WEGZ,” Lawson told Canadian Thoroughbred. “There is an opportunity for the government and for the racetrack industry.”

Lawson, a longtime advocate for horse racing’s role in Canadian gaming, emphasized that Woodbine group seems to tick all the boxes for what Ontario and Canada appear to be looking for in a licensed operator. It is a Canadian company with a nonprofit mandate, good technology, and a familiar relationship with the Alcohol and Gaming Commission of Ontario (AGCO).

“There’s no reason whatsoever to think that sportsbooks should be going to casinos or just to casinos,” he added. “We acknowledge there could be competition. We’re not looking for exclusives on sportsbooks, but we’re basically turnkey on sportsbooks.”

On top of its own 48 Champions Teletheatres, Woodbine-operated HorsePlayer Interactive (HPI) has deals with all the tracks in Ontario, offering the potential for sportsbooks at tracks around the province, from Ottawa to Hamilton to London.

Lawson noted that makes Woodbine group is a strong candidate to set up on-location sportsbooks across the province to provide the greatest return on the proceeds of sports betting for the government. However, he admitted concern that Ontario’s model may shut horse racing out of the sports betting game by focusing on casinos, a model chiefly demonstrated in Las Vegas and the U.S. but by no means universal across other jurisdictions. 

“A lot of the sports betting operators across the world find their origins in horse racing when you think of the big names like William Hill and Tabcorp and others,” Lawson added. “They are all horse racing operators… I think there’s a misconception that somehow sportsbooks and sports betting goes with casinos… If you think of the ways that sports betting operates in the United Kingdom, in particular, and in Ireland and France and Australia, it’s a coordinated sportsbook… It’s all horse racing and sports betting. It’s not this concept that somewhere casinos have sportsbooks.”

Lawson stressed there are multiple advantages of ensuring horse racing is at the sports betting table. Not only would it prevent damage to the racing industry, but it would help to reduce its reliance on government subsidies and support.

“There’s a real opportunity for the government to earn money and, at the same time, support the horse racing industry and start to chip away at eliminating altogether the subsidy for horse racing. Put horse racing on independent, healthier grounds.”

Woodbine has already seen success in getting Canada’s single-event sports betting bill, passed in late August, amended to ensure racetracks’ own pari-mutuel model continued to be viable. “Woodbine worked very hard to lobby and have the government understand that unfettered, unconditional sports betting coming into Canada would destroy the horse racing business,” said Lawson. “They listened. They pulled pari-mutuel wagering out of the sports betting legislation. That was a good start.”

RELATED: Woodbine takes North America’s largest 2021 handle

Lawson emphasized that Woodbine Entertainment Group could be ready to open bricks-and-mortar sportsbook locations almost immediately if authorized to do so, and noted that the group’s Champions lounges in particular are virtually already there in terms of the infrastructure required. He would like Ontario to follow the New Jersey model that does not require a casino on-site at the racetrack, and suggested that either Woodbine group could operate its own sportsbook or the group could unite with the Ontario Lottery and Gaming Corporation (OLG) or other partners to ingrate HPI into their existing operations.

Either way, he concluded, ensuring horse racing is brought firmly into the fold is “critical” to its future.

“We need to play a role in sports betting and we will. We’re working with the regulators to ensure that we can integrate. But we’re serving a major retail sports betting network on a silver platter that will generate huge amounts of revenue to the government.”

Strive Gaming to power Golden Nugget’s planned Ontario launch

iGaming technology provider Strive Gaming has agreed a deal to provide its player account management (PAM) platform to Golden Nugget Online Gaming’s (GNOG) operations in Ontario, as well as the U.S. state of Arizona.

Strive Gaming’s PAM will initially power GNOG’s online sportsbook launch in Arizona, followed by a planned launch in Ontario, where GNOG is seeking an iGaming licence.

“As we rapidly expand our online presence across North America, GNOG needed a PAM partner who could quickly integrate and launch our chosen sports betting engine, without sacrificing any of the flexibility or functionality expected from a top-tier PAM,” said Golden Nugget Online Gaming president Thomas Winter. “We are confident in our choice of Strive Gaming and have been very impressed with what we’ve witnessed from both the team, and the platform, to date.”

Strive Gaming CEO Max Meltzer added: “The Golden Nugget Online Gaming team is one of the most experienced online operators in the US. After a thorough examination of the PAM supplier market, GNOG’s choice of Strive is a testament to what we have developed and are now capable of offering via our North American focused services and solutions.”

The Strive PAM is specially developed to meet the compliance needs of “post-PASPA” North American digital operators who desire to conduct a unified customer experience across multiple U.S. states. It runs through the Infinity Engine, a flexible rules-based engine bringing operator insights and customer relationship management closer to real-time player data.

Six Nations and Kahnawà:ke unite on gaming

The Mohawk Council of Kahnawà:ke and the Six Nations of the Grand River First Nations have announced they have entered a mutual cooperation agreement which they say will “strengthen our joint efforts in defending our interests”.

Both parties say the agreement will “defend, by any means possible, our Indigenous jurisdiction over gaming” as well as the socio-economic benefits that the communities get from their gaming industry.

The partnership facilitates a memorandum of understanding between each community’s gaming regulatory bodies and creates a space where discussions on potential mutually beneficial opportunities in the iGaming industry can occur.

“Today’s agreement signifies an important milestone as our communities come together to address our collective concerns,” said Six Nations Chief Mark Hill. “This type of partnership is the first step in demonstrating the possibilities of what we can achieve as Iroquois communities if we work together.  We are much stronger not as individuals, but as a collective, and these relationships will strengthen us as we assert our rights and jurisdiction within the gaming industry and beyond.”

Both communities argue that the recent changes to Canada’s Criminal Code and gaming industry has “effectively shut out First Nations by willfully ignoring the legitimate interests of indigenous peoples in the gaming industry”. They have been critical of Ontario’s iGaming model, which they say “will not benefit SNGR or Kahnawà:ke’s socio-economic business, Mohawk Online, as it closes off access to one of its largest local markets”.

Hill added the communities are “disheartened” to learn the Ontario government has moved forward with its iGaming initiative without holding meaningful consultation with First Nations communities in the gaming market. In particular, Six Nations and Kahnawà:ke say that iGaming Ontario’s roadmap will negatively impact Mohawk Online, an online gaming service featuring sports betting, casino and poker games owned by the Mohawk Council of Kahnawà:ke and “closes off access to one of its largest local markets.”

“Gaming is not new to Six Nations of the Grand River,” Hill added, per the Brantford Expositor. “It’s an activity that Haudenosaunee people have done for centuries; long before European contact; long before Canada was a country; long before Ontario was a province, and, certainly, long before the Alcohol and Gaming Commission of Ontario was established.”

The Six Nations Gaming Commission was created in 1996 to regulate and license gaming in the territory. Since that time, says Hill, the proceeds from those gaming activities “have had an incredible socio-economic impact to the benefit of our community – but so much more is possible.”

The First Nations communities will collaborate on legal, political, and public relations strategies to defend their respective jurisdictions and interests in the gaming industry, as well as welcome other Indigenous communities to the collaboration. They will also begin development on a national body of Indigenous gaming regulators.

IGT launches Wheel of Fortune bingo for Ontario’s charitable gaming market

International Game Technology has announced that it is launching its top-performing Wheel of Fortune-branded games as a premium electronic bingo game in Ontario’s charitable gaming market.

The Wheel of Fortune Double 3X4X5X Pay Bingo and Five Times Pay Bingo are now available to the 37 community gaming centres in Ontario that are approved for electronic bingo.

IGT is also signing agreements with individual operators.

“The introduction of IGT’s premium-branded Wheel of Fortune titles as electronic cabinet bingo games has the opportunity to engage new and existing players in Ontario’s charitable gaming market,” said David Fraser, Senior Director, Charitable Gaming, Ontario Lottery and Gaming Corporation (OLG), in a release. “These exciting additions will elevate gameplay and create additional product choice for our service providers which all contribute to strengthening charitable gaming and raising money for local charities.”

“IGT is committed to enhancing the player experience for Ontario’s charitable gaming market, through the addition of Wheel of Fortune-branded electronic bingo games,” said David Flinn, IGT Regional Vice President, Canada, South and Central America. “IGT will continue developing new products with innovative technology, and contemporary play styles to support the important work of charitable bingo halls throughout Ontario.”

IGT has been a partner of the OLG for over two decades and has been supplying electronic bingo games in the market since 2018. It licenses the Wheel of Fortune brand from Sony Pictures Television and has created more than 250 versions of the branded games since 1996.