Two online sportsbook operators that aim to make a splash in Ontario say they’ve now obtained a key approval from a provincial regulator.
Penn National Gaming Inc. CEO Jay Snowden said Thursday that the Alcohol and Gaming Commission of Ontario (AGCO) had approved the registration of theScore Bet as an internet gaming operator in the province.
TheScore Bet became a part of Penn after the Wyomissing, Pa.-based company bought Toronto’s Score Media and Gaming Inc. last year. TheScore has also received a certification from Gaming Laboratories International for the sports betting and iGaming app it plans on using in Ontario.
“These are two important milestones before theScore Bet can begin operations in the province on April 4th, and theScore continues to work to satisfy all remaining requirements including execution of an operating agreement with iGaming Ontario,” Snowden said during a conference call.
Ontario recently announced that it would open a new market for internet-based sports betting and casino gambling in early April. For an operator to start taking bets in the province, it must register with the AGCO, a regulator, and sign a commercial contract with iGaming Ontario, a government agency and AGCO subsidiary.
PointsBet announced on Thursday that it too had received a similar approval from the AGCO, leaving it, like theScore, in need of only the iGaming Ontario agreement.
“We are proud to be one of the first iGaming operators regulated by the Alcohol and Gaming Commission of Ontario,” said Chantal Cipriano, vice-president, legal, compliance, and people at PointsBet Canada, in a press release. “It demonstrates the confidence that regulators have in our ability to deliver an innovative, safe, and responsible experience to Ontario consumers.”
The little things
Both theScore Bet and PointsBet are already taking wagers in several U.S. states. However, both are also intent on being major players in Ontario, a province with a population so large it would rank as the fifth-largest state south of the border.
Ontario’s size has made it an object of interest for some of the biggest names in sports betting. So, too, has the fact that the province’s government is creating a market that will allow private-sector companies to take bets online, which would be a first for Canada. The market is scheduled to open on April 4.
While Ontario’s iGaming market bears a resemblance to what is happening with U.S. states that have legalized sports betting, the laws of Canada and the province’s regulations will create some seemingly small but important differences, such as the licensing structure.
Some other differences were touched on by Penn’s Snowden during the conference call the company held to discuss its fourth-quarter financial results.
For starters, Canadians are already estimated to be placing billions of dollars in bets at “grey market” sportsbooks that may be licensed offshore or outside the provinces, but not by the provinces themselves.
One of the goals of Ontario’s iGaming market is to bring at least some of those operators and their customers in from the cold so that they can be regulated in Canada.
“So, we'll have to see how that competitive dynamic with grey market operators in Canada plays out,” Snowden said during the call.
Another change of pace with Ontario is the province’s rules for advertising for online sportsbooks will be much stricter than in the U.S. For instance, the AGCO’s iGaming standards say the advertising of sign-up bonuses is banned except for on an operator’s website, or if a customer consents to receive offers via email, texts, or social media.
Snowden said Penn likes this aspect of Ontario’s market, which lines up with the company’s current marketing strategy that relies on the personalities of Barstool Sports. In Ontario, Penn’s plans also revolve around theScore, the digital media app from which is already popular in the province.
“Obviously, we’re going to be very focused on the conversion of sports media to sports betting,” Snowden said.
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PointsBet, meanwhile, has been covering itself in Canadiana recently. While the bookmaker’s roots are Australian, it has rolled out a very Canadian marketing strategy, such as announcing on Wednesday that it had partnered with Alpine Canada, the governing body for alpine, para-alpine, and ski cross racing in the country.
“Since day one, we have remained genuine to our promise of building a Canadian sportsbook, with Canadian employees, for the Canadian market,” said Scott Vanderwel, CEO of PointsBet Canada, in a press 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.”
