Search
Choose a style
Dark
Light

Entain makes big Canadian play with $300m Avid Gaming purchase

Entain announced in a press release Monday on February 7 that it has purchased Avid Gaming, owners of the Canadian operator Sports Interaction, from Middlebrook Investments for $300 million.

Founded in 1997, Sports Interaction is currently the official sports betting partner of the National Lacrosse League in Canada and previously had partnerships with a number of CFL teams, including the Ottawa Redblacks and Edmonton Elks.

The CEO of Avid Gaming, Will Golby, and other members of the executive team will transition to Entain, which already owns 50 per cent of BetMGM with MGM as well as Canadian brands bwin and Party.

Jette Nygaard-Andersen, CEO of Entain, called Sports Interaction the leading Canadian sports betting and gaming brand and said it is “is aligned perfectly with our own ambitions of great customer service and ambitious growth, coupled with an unwavering commitment to sustainability.” Nygaard-Andersen added that Sports Interaction is “highly complementary to our existing operations in Canada”.

It is operated by Mohawk Online, which is wholly owned by the Mohawk Council of Kahnawá:ke and is regulated and licensed by the Kahnawá:ke Gaming Commission in Quebec. Mohawk Online revenue is invested back into the indigenous community of Kahnawá:ke to provide essential funding for cultural and language programmes, schools, healthcare, and other public services. Roughly 50 per cent of Avid Gaming employees in Kahnawá:ke are Mohawk.

“Entain is a world-class operator with a genuine desire to positively contribute to the communities in which it operates,” added Kahsennenhawe Sky-Deer, grand chief of Mohawk Council of Kahnawá:ke. “Kahnawá:ke is well-known in the gaming industry, not only for our internationally recognized jurisdiction through the Kahnawá:ke Gaming Commission but also for our socioeconomic initiative, Mohawk Online. This new partnership between Entain and the Mohawks of Kahnawá:ke is mutually beneficial, and brings with it prime opportunity for bolstering our self-sufficiency through the continuing success of Sports Interaction.”

As the Ontario regulated market players begin to emerge, it remains to be seen whether Sports Interaction will receive licensing through the Alcohol and Gaming Commission of Ontario (AGCO). In the release, Entain called Canada a “highly attractive, fast-growing sports betting and gaming market”.

The acquisition is expected to deliver approximately $15 million in synergies for Entain in 2023 through sharing technology, content, and procurement efforts.

Meanwhile, Entain has also announced that it has joined an alliance of gaming and technology companies calling for higher standards and safeguards to better protect people who enjoy gaming. The Global Gaming Alliance, which also includes DraftKings, is a new forum seeking to address shared responsible gaming and player protection challenges in the rapidly-evolving global gaming industry.

NorthStar Gaming strikes Ontario deals with Kambi and Parleh Media

Nascent Canadian gaming brand NorthStar Gaming’s sports betting launch in the Ontario market will be powered by Kambi, the leading independent provider of premium sports betting and technology services.

A press release states that NorthStar Gaming’s collaboration with Kambi will provide customers with a high-quality entertainment and betting experience, starting with Ontario’s regulated online gaming and sports betting market which is expected to launch on April 4, 2022.

NorthStar Gaming and Canadian Gaming Association member Kambi are both committed to growing the Canadian sports betting market sustainably and responsibly following the legalization of single-event sports wagering, adds the release.

“Kambi’s data-driven sportsbook and flexible technology, along with our proprietary UX approach, will give us access to the market’s most innovative and differentiated sportsbook experience,” said Michael Moskowitz, Chief Executive Officer of NorthStar Gaming. “With valued partners like Kambi, our best-in-class online casino and local sportsbook brand will provide consumers with an engaging and frictionless experience.”

Kambi was selected as NorthStar Gaming’s sportsbook provider after a thorough evaluation process. It has already partnered with more than 35 operators around the world and is recognized for delivering highly tailored and customizable sports betting experiences via its data-driven sportsbook and flexible technology.

“Our partnership with NorthStar Gaming marks an important strategic milestone for Kambi as we expand into Canada’s sports betting market,” said Kristian Nylén, Chief Executive Officer and Co-Founder, Kambi. “NorthStar Gaming is on a mission to create the most engaging online gaming and sports betting product in Canada. Thanks to our premium technology and service offering, NorthStar Gaming will be able to deliver a bespoke online sports betting experience to Canadian players and we are excited about the pending launch in Ontario and additional provinces.”

In addition, NorthStar announced on February 8 an exclusive partnership with Parleh Media Group that will see it become the exclusive and official sportsbook and casino affiliate partner for Parleh’s owned and operated digital channels in Ontario.

Specifically, NorthStar will utilize targeted video, audio, and social content to engage, attract, and retain sports bettors and entertain sports fans. The brand will syndicate the content across its own properties and with third-party platforms, including the digital and social platforms of Torstar Corporation, with which it entered a landmark omnichannel advertising and marketing services agreement late last year.

A release says that partnership “advances NorthStar’s position as a convergence leader in media and regulated online sports wagering across Canada”. Moskowitz said that video and other captivating multi-platform content “will really differentiate NorthStar Gaming in the market as we maximize the consumer impact of our syndication agreement with media partners”.

“It was clear from our earliest conversations with NorthStar’s leadership team that they understood how our videos will fill a sports-betting content void left by the major sports networks and the few U.S.-focused sports betting broadcasters,” said Mark Silver, CEO and founder of Parleh. “We’re delighted to have NorthStar as our first sportsbook partner and to work with the company to deliver a ubiquitous digital and social media experience.”

NorthStar Gaming, born out of a Canadian media business and news organization has been gearing up to hit the ground running with its betting offerings. The link-ups with Kambi and Parleh are just the latest in its string of partnerships with reputable and established industry players.

In January, it was announced the company had teamed up with Playtech, the world’s largest and most trusted online gaming software supplier, for its iGaming offerings. Utilizing Kambi’s software for its sportsbook means NorthStar now has two major global industry powers on its side.

New York illustrates sports betting potential with record-breaking first month

New York took less than a month to shatter the all-time US monthly record for a legal sports betting handle.

According to figures released on February 4 by the New York State Gaming Commission (NYSGC) consumers staked a total of US$1.63 billion during the first 23 days of legal online wagering in the state, between January 8 and January 30. Sportsbooks made $113 million in gross revenue, worth $57.6 million in tax dollars, aided by the state’s comparatively high gaming tax rate.

That total handle comfortably breaks the previous record handle, set at around US$1.3 billion by neighbouring New Jersey in October 2021. It means this will be the first month since January 2020 that New Jersey is not the state that leads the US in sports betting volume.

Mike Mazzeo, lead analyst at PlayNY.com, said that while New York overtaking New Jersey as the nation’s largest sports betting market was expected, “few thought it would take only three weeks”. He added, per SBC Americas, that “it’s clear that New York is going to be the flagship sports betting market in the U.S. for the foreseeable future.”

Seven sportsbooks are currently operational in the state. Four of those – the major market players of Caesars, FanDuel, DraftKings, BetRivers – were live on the market’s launch day, while BetMGM, PointsBet, and WynnBET all soon followed. In addition, Bally’s and Resorts World have been conditionally licensed to operate but have not been cleared to begin as of yet.

For the week ending January 30, FanDuel led the way with US$141.8m in wagers, followed by Caesars (US$128.1m), DraftKings (US$102.2m), BetMGM (US$37.5m), and BetRivers (US$10.2m).

Eric Ramsey, the lead data analyst for the PlayUSA.com Network, which includes PlayNY, added, per SBC: “The majority of states have struggled to maximize tax revenue from sports betting, but New York has certainly gone in another direction. Such a high tax rate could still lower the ceiling for New York’s sports betting market in the long term, but after three weeks of unprecedented volume, that seems like less of a concern.”

The situation in neighbouring New York will likely be of keen interest to those in the industry in Ontario, whose online gaming market, the first in Canada to adhere to an open and regulated model, is set to go live on April 4, 2022.

Ontario is the fifth-largest jurisdiction in North America and its population of roughly 15 million would make it the second-biggest market in the continent’s regulated sports betting and iGaming sector to open to date. It is predicted to generate gross revenues of nearly $1 billion in its first year of operation and is expected to be one of the most competitive markets in North America.

As some of the predicted major players in the market begin to confirm their licensing to operate in Ontario, developments in New York will be of keen interest.

Responsible gambling: A year in review

By the Responsible Gambling Council

2021 was a year of hardships and challenges for many. Globally, it feels like we’re still trying to understand the implications of a new normal. RGC’s Centre for the Advancement of Best Practices (CABP) turned these challenges into opportunities by continuing to study how changes to the industry impacted players and communities.

CABP is a research engine that promotes the identification and adoption of best practices to reduce the incidence of problem gambling. Over the past year, CABP researchers published many studies that not only informed RGC prevention programming and campaigns but greatly contributed to the research community and industry as a whole.

COVID-19 and gambling

COVID-19 and the effects of the pandemic is a major theme in research today. Senior Researchers Alex Price, Ph.D. and Sasha Stark, Ph.D. conducted a longitudinal research study, alongside members of the Ontario Gambling Research Society (OGRS), on the impacts of COVID-19 on gamblers in Ontario – the first of its kind in Canada and one of the first in the world.

Findings coming out of this important research showed respondents had increases in online gambling due to emergency measures and increases in intoxicated gambling and gambling while feeling anxious or depressed. The value of this study lies in how it can inform harm prevention and minimization:

COVID-19 has led to rapid and evolving changes in population health. At a time when gambling participation and markets are also rapidly changing, longitudinal research is critically important to understand the implications of these changes on consumer safety and player health so that we may adapt and pivot to emerging challenges in the field of responsible gambling.

– Dr. Alex Price, Senior Researcher

Because knowing is half the battle, research such as this becomes invaluable to industry, treatment professionals and the research community. More broadly, this evidence goes a long way in informing strategy and programming that ensure consumer safeguards reflect the current gambling landscape and help address new risks.

Digital wellbeing

The proliferation of technology has also had impacts that are far-reaching. Mobile usage is the highest we have ever seen – in fact, in Canada 98 per cent of kids aged 15 to 24 have a smartphone and 58 per cent of them check in every 30 minutes. How do we offset the gambling and other risks involved in this digital society when it comes to vulnerable populations, such as young adults?

Sasha Stark, Ph.D. explored this question in-depth to better understand links between online gambling and digital wellbeing – the positive and negative impacts of time spent across online spaces – among young people.

“’Young people are often at high risk of both poor mental health and gambling harms – and this innovative research shows that they’re also at high risk of lower digital wellbeing. By documenting the links between online gambling harm and lower digital wellbeing, this work demonstrates the need for holistic initiatives and safeguards to support people – particularly young people – across online spaces.”

Dr. Sasha Stark, Senior Researcher

The goal of this digital wellbeing research is to generate awareness among and outline practical next steps for the many different stakeholders across online spaces, to foster collaborations for supporting the digital wellbeing of young people.

The importance of research

The gambling industry is constantly changing, evolving, and being influenced by the environment. Research is a critical tool to keep stakeholders informed of how these changes influence those who gamble, their support networks, and communities. This knowledge can inform organizational direction, policy development and programming to support a safer industry. The legalization of single-event sports wagering, Ontario’s expansion of regulated online gambling and COVID-19 are just a few examples of this massive change in Canada.

So, where do we go from here? We posed this question to CABP Senior Researchers and a few common themes emerged:

  1. The examination of Canadian regulatory developments related to standards and guidelines for single-event sports betting and its associated advertising, sponsorship and in-play betting and promotions are on our radar. Learnings from other jurisdictions have shown us that sports betting marketing and advertising overexposure negatively impacts vulnerable populations, such as youth. The development of standards that consist of the proper restrictions will help Ontario uphold its strong commitment to consumer safeguards.
  2. The pandemic had the world pivoting. Our adaptation to a new normal will likely continue over time, which means that we need to continue examining the impacts of COVID-19 on gambling behaviour and the impacts of new gambling offerings being introduced into markets.
  3. Responsible gambling isn’t a one-size-fits-all approach. The longitudinal study completed by the CABP team during the height of COVID emergency measures revealed that people of Chinese and South Asian descent who gambled had a much greater likelihood of experiencing severe gambling problems, intoxicated gambling, mental health problems, and endorsing risky gambling motives, compared to the general gambling population. Through this data, we know that there is a strong need for the development and pilot testing of appropriate, targeted and segmented responsible gambling messaging for these ethno-cultural populations in Canada.
  4. Core principles of responsible gambling should become a call to action for the community to continue researching and studying their value. How to effectively incentivize responsible gambling and the usage of pre-commitment tools is perhaps more important than ever when we think about the rise of online gambling. Additionally, looking at new approaches for affected others and the expansion of supports already available to prevent financial harms can further help players and society as a whole.

As the research community comes together, momentum is naturally carried forward. Because evidence and data span borders and continents, we have an opportunity to be a part of a global knowledge-sharing network. Research allows for the identification of gaps and areas of need, which is what advances best practices and responsible gambling throughout the industry.

Find a full list of publications by CABP researchers here.

Ahead of April opening, the potential Ontario market players are emerging

Within mere days of the announcement last week that Ontario’s long-awaited regulated online gambling and sports betting market would officially open on April 4, predicted major players in the market are confirming their licensing.

Beginning on that date, private gaming operators that have registered with the Alcohol and Gaming Commission of Ontario (AGCO) and have executed an operating agreement with iGaming Ontario (iGO) can begin operating gaming sites in the Ontario market on behalf of the province.

Ontario’s will be the first licensed and regulated iGaming market in Canada and will provide players with a broader selection of legal bookmakers. Until April 4, the offerings of Ontario Lottery and Gaming Corporation (OLG) are the only legal gambling options available to Ontarians within the province.

Long before even that confirmation of a firm timeline, it had been predicted that big-name companies in the US market such as DraftKings, FanDuel, PointsBet, Rush Street Interactive, and Penn National Gaming would be aggressively seeking licenses from AGCO to compete with OLG in the Ontario market.

Announcements are already coming. On February 3, just six days after the confirmation of the market opening timelne, PointsBet Canada became the first private operator to confirm it has been granted AGCO approval to operate as a licensed iGaming provider and sportsbook in the province’s new regulated market.

PointsBet Canada CEO Scott Vanderwel said in a news release that licensing was “a momentous step” for the company and confirmed the brand’s offerings would be ready to hit the ground running from April 4.

Vanderwel opined that PointsBet’s approval is a testament to the fact it has “remained genuine to our promise of building a Canadian sportsbook, with Canadian employees, for the Canadian market”.

Within a couple of hours on February 3, Toronto-based made-in-Canada sportsbook theScore Bet announced its own registration as an iGaming operator in the Ontario market.

The licensing of theScore Bet, which was the first prospective operator to secure Gaming Labs International (GLI) certification for Ontario and RG Check iGaming Accreditation from the Responsible Gambling Council (RGC), gives Penn National a strong foothold in the market. Penn acquired theScore for around C$2.5 billion in October.

theScore CEO John Levy said the company, a long-time advocate of opening up and broadening the Ontario market for online gambling and betting, is “thrilled” to be among the first operators to receive registration.

One thing both operators have in common is that they have been steadily ramping up their Canadian-focused operations and struck numerous partnerships in recent months.

PointsBet has become the official betting partner of organizations such as Curling Canada and the NHL’s Alumni Association, while theScore has teamed up with Golf Canada, amongst others.

While the two brands were the first to parade their registration, others, such as Toronto-based Rivalry, have also confirmed their licensing.

More announcements will of course follow.

Covers reported on February 3 that at least 30 operators of online sportsbooks and gambling websites have applied to the AGCO for registration so far. By the time April 4 rolls around, the market will be taking shape.

As Levy puts it: “Finally, the countdown to launch has begun.”

PointsBet Canada gains AGCO approval for Ontario operation

PointsBet Canada has announced that it has been approved by the Alcohol and Gaming Commission of Ontario (AGCO) to operate as a licensed iGaming provider and sportsbook in the province’s new regulated market.

Noting that PointsBet has remained fully committed to building “a Canadian sportsbook, with Canadian employees, for the Canadian market”, PointsBet Canada CEO Scott Vanderwel said in a news release: “Today’s approval of PointsBet Canada as a licensed sportsbook in Ontario effective April 4, 2022, is a momentous step in unveiling our authentically Canadian gaming experience to the province.

“In just 60 days, PointsBet Canada’s unmatched speed and ease of use, unrivalled in-game betting capabilities, and unique local partnerships will bring Ontario sports fans a new, responsible, and dynamic form of sports betting and entertainment.”

It was announced last week that Ontario’s long-awaited regulated online gambling and sports betting market would officially open on April 4.

Beginning on that date, private gaming operators that have registered with the AGCO and have executed an operating agreement with iGaming Ontario can begin operating gaming sites in the market on behalf of the province.

PointsBet Canada, which has been steadily ramping up its operations over recent months, is the first private operator to announce it has received AGCO approval.

Chantal Cipriano, VP of Legal, Compliance & People, added that the company is “proud to be one of the first iGaming operators regulated” by the AGCO.

“It demonstrates the confidence that regulators have in our ability to deliver an innovative, safe, and responsible experience to Ontario consumers,” Cipriano added. “We look forward to applying our expertise from Australia and the United States to help build a trusted, competitive, regulated iGaming market in Ontario, establishing an important foundation for our nation.”

Ontario’s will be the first licensed and regulated iGaming market in Canada and will provide players with a broader selection of legal bookmakers. Until April 4, Ontario Lottery and Gaming Corporation’s offerings are the only legal gambling options available to Canadians within Canada.

AGEM Index declines nearly 5% to start 2022

The AGEM Index declined by 45.71 points to 925.87 in January 2022, marking a 4.7 per cent decrease from December 2021.

Compared to one year ago, the index increased by 229.80 points for an annual growth rate of 33.0 per cent.

In the latest period, nine of the AGEM Index companies reported stock price decreases amid a broad market decline. As a result, three companies posted positive contributions to the index, while the other nine posted negative contributions.

The top contributor to the monthly index was Konami, whose 11.1 per cent increase in stock price led to a 16.69-point gain for the index. The largest negative contributor to the index was Aristocrat, whose 7.4 per cent drop in overall stock price resulted in a 35.24-point decrease in the AGEM Index.

Meanwhile, a double-digit drop in the stock price for Scientific Games was also a driving factor in the monthly drop in the index. The company reported a 13.7 per cent decline in stock price, which led to a 15.63-point decline to the index.

January’s decline is only the second that the index has experienced since July 2021 and comes after 2021 ended with an improvement of 11.39 points to 971.59 in December, a 1.2 per cent increase on November.

The latest drop came in the context of the fact that the three major U.S. stock indices decreased over the latest period. The Dow Jones Industrial Average declined 3.3 per cent, while the S&P 500 fell by 5.3 per cent. Meanwhile, the NASDAQ experienced a 9.1 per cent fall.

The Association of Gaming Equipment Manufacturers (AGEM) produces the monthly AGEM Index that comprises 12 global gaming suppliers throughout the world. The index is computed based on the month-end stock price (adjusted for dividends and splits) of each company and weighted based on an approximation of market capitalization.

Playtech shareholders reject Aristocrat takeover

Aristocrat’s publicized and drawn-out attempted acquisition of Playtech has collapsed as the latter’s shareholders this week rejected the takeover.

Playtech shareholders convened on February 2 to review Aristocrat’s recommended £6.80 (C$11.71) per-share cash offer.

An approval rate of 75 per cent was needed to approve the resolution and progress the deal, but a Court Meeting returned a 56.13 per cent rate and a General Meeting yielded an even lower proportion, 54.68 per cent.

As a result, the proposed £2.1 billion (approximately C$3.6 billion) acquisition of Playtech has officially been terminated and Playtech is no longer in an offer period.

Playtech had said earlier on February 2 that, in the event that Aristocrat’s offer was not approved by shareholders, the company plans to explore other opportunities to unlock shareholder value. It added it is evaluating “attractive M&A proposals” it has received from third parties regarding its B2B and B2C businesses.

Aristocrat managing director and CEO Trevor Croker voiced disappointment at the collapse of the deal and added the developments since the initial acquisitive announcement in October 2021 had “been highly unusual” and “largely beyond” its control.

“In particular, the emergence of a certain group of shareholders who built a blocking stake while refusing to engage with either ourselves or Playtech materially impacted the prospects for the success of our offer, which had been recommended by the board of Playtech,” Croker said, per Reuters.

However, Croker stressed that Aristocrat’s commitment to the RNG sector as part of its wider strategy will not be altered.

Meanwhile, Brian Mattingley, Playtech’s chair, said he was not disappointed because the process had “highlighted the fact that the company is valuable”, reports the Financial Times.

According to BNN Bloomberg, Playtech was contacted by TTB Partners about a potential takeover within hours of the Aristocrat bid being rejected, although there is currently no offer on the table. TTB’s parent company, Gopher Investments, withdrew its official interest in acquiring Playtech in November.

PointsBet named Alpine Canada’s official sportsbook

PointsBet Canada has been named as Alpine Canada Alpin’s official sportsbook as part of a new partnership between the two organizations.

Alpine Canada is home to the national alpine, para-alpine, and ski cross teams and recently celebrated its 100th anniversary.

The multi-year agreement commences with the current 2021-2022 season.

“Alpine Canada is thrilled to welcome PointsBet to the ACA corporate family. They are a true Canadian operator in an exciting emerging space, and their support of athletes and the ski community in Canada is a wonderful reflection of that,” said Therese Brisson, Alpine Canada’s CEO and President.

“PointsBet Canada is committed to bringing our nation’s fans gold medal experiences, and we are excited to be partnering with our world-class Canadian skiers as they follow their dreams and represent our great country on the world stage,” commented Scott Vanderwel, Chief Executive Officer of PointsBet Canada.

PointsBet lays claim to being one of the fastest-growing online gaming operators in the United States and has seen rapid growth in Canada as it looks to establish a market leadership position as the sports betting and iGaming market opens up this spring.

In recent months, as well as making several key hires to lead its operations north of the border, PointsBet has also struck sports betting and marketing partnerships with organizations including the NHL Alumni Association and Curling Canada.

Gambling.com acquires BonusFinder with eyes on North American expansion

Gambling.com Group has furthered its North American growth strategy with the acquisition of NDC Media, the publisher of BonusFinder, for around C$88 million.

The company said in a release it anticipates an accelerated rate of expansion across the U.S., as well as becoming “strategically positioned” to capitalize on developments across Canada, starting within Ontario’s soon-to-open market.

Fintan Costello, chair of BonusFinder, commented: “These organizations complement each other well as partners within the North American market. Gambling.com Group has demonstrated its leadership position within the online sports betting and iGaming industry, and its proprietary technologies and experience will provide BonusFinder with the tools to maximize growth in this exciting new era of North American regulation.”

Charles Gillespie, Gambling.com’s CEO, said that the acquisition of BonusFinder will give his company additional scale in the North American online gambling market.

“BonusFinder’s strong presence in Canada is expected to drive increased market share for the group ahead of the anticipated Ontario online sports betting and iGaming market launch in April,” added Gillespie. “We believe that the combination of these two complementary businesses is immediately accretive to our fiscal 2022 earnings, and establishes a foundation for a leadership position in North America which will drive value creation for our shareholders. We believe the deal structure provides an attractive risk/reward balance for the group.”

Amsterdam-based NDC had launched BonusFinder.com as its flagship portal in 2019 to provide a bonus and sportsbook comparison service for customers within newly liberalized U.S. states.

BonusFinder recently predicted in a report that once Ontario’s regulated open iGaming market is up and running, it will quickly become the most attractive iGaming market in North America for players and brands, surpassing all of its U.S. online counterparts in 2022.