Entain acquisition only the beginning
The gaming behemoth’s purchase of Avid Gaming to kick off Super Bowl Week is only the start of the M&A activity that will be felt by Ontario’s new legal industry.
In this issue
“Second shoe to drop”
Stepping up to the plate
A match made in Canada
Join us today at 2 p.m. ET on Twitter Spaces for our weekly sports betting industry live audio gabfest.
Entain deal is “second shoe to drop”
The steam was still rising from the first cup of coffee Monday morning when news broke on the internets that global sports betting and gaming giant Entain was acquiring Avid Gaming - owners of Sports Interaction - for 300 million loonies (OK, ignore the loonies reference).
The announcement caught industry watchers off-guard, even though it’s a widely held belief that M&A will be as much a part of the lingo in Ontario’s new open market as parlay, points spreads and money lines. As Geoff Zochodne reported on Covers.com Monday, the Alcohol and Gaming Commission of Ontario has already accepted 30 applications from online sportsbook and gaming operators planning to do legal business in the province come April 4th. There’s no doubt that there’ll be a consolidation of the industry over the next 12-24 months.
“(The Entain/Avid Gaming deal) is the second shoe to drop,” gaming investor and advisor Benjie Cherniak told The Parleh on Monday, reminding us of Penn National Gaming’s acquisition of Score Media and Gaming last year. “It’s a significant commitment to the Canadian marketplace by Entain (which also has a 50% stake in BetMGM). Sports Interaction is 100% Canadian and one of the five biggest players in the Canadian space today.
“Do I think there’ll be others (involved in M&A activity)? Yes.”
There was some grey and fuzzy around the deal with regards to whether or not Entain’s purchase of Avid Gaming means Sports Interaction would apply for a licence to operate in Ontario. A source told us Monday evening that the Mohawk Council of Kahnawà:ke retains a significant ownership stake in Sports Interaction. The sportsbook’s website is operated by Mohawk Online, which is licensed by the Kahnawà:ke Gaming Commission and the Jersey Gambling Commission.
In the Council’s news release, Grand Chief Kahsennenhawe Sky-Deer made it crystal clear that Sports Interaction will continue to offer its product to Ontario customers.
“Although Entain has made the decision to apply for licensure with iGaming Ontario for other brands under its umbrella, Mohawk Online and Sports Interaction will continue to be licensed under Kahnawà:ke jurisdiction,” said Grand Chief Sky-Deer in the release.
More chapters to be written on this in future weeks and we’ll discuss it on Twitter Spaces this afternoon.
Stepping up to the plate
We’re trying to keep track of the expected operators coming into Ontario.
So, in case you’ve used the commercial breaks during CBC’s coverage of the Winter Olympics to visit the loo or restock the trail mix bowl, BetRivers is spending significant money as an advertiser with the Corp. The Parleh Fashion Police are mulling over Dan O’Toole’s yellow/mustard/gold shirt and pocket hanky.
Also buying significant TV air time this week was Betway. And, despite having heard nary a peep from Bet365 about whether or not it will be seeking a licence, Ontario is going to be a very crowded house.
A match made in Canada
While going back and forth on email this week with the aforementioned Cherniak, we asked the native Montrealer for a thought or two on NorthStar Gaming’s agreement with Parleh Media Group (owners of this august newsletter) that was announced Tuesday morning.
“It is exciting to see two distinctly Canadian companies collaborating in advance of the April 4th launch date in Ontario,” said Cherniak, who is an investor in several sports betting and gaming businesses, including Parleh. “Bigger picture, we can see how Parleh Media is positioned to partner with sportsbooks on both sides of the border to enhance user engagement via compelling short-form content.”
For NorthStar, which will showcase Parleh video content through its relationship with Torstar - one of the largest media distribution companies in the country - this week’s deal comes on the heels of its previously announced agreements with Playtech and Kambi as it prepares for an April 4th unveiling of its sportsbook and online gaming product.
Rec Room, Parleh having a party (or nine)
Your humble messenger put the finishing touches on the newsletter from a hotel room in downtown Toronto this morning after attending a dinner with members of the sports betting and gaming biz last night. Gotta admit, it felt kind of normal and yet another sign that we’re moving in the right direction when it comes to putting COVID-19 in the rearview mirror.
With that in mind, The Parleh is linking arms with The Rec Room, which will be staging Super Bowl viewing parties on Sunday at its nine locations across Canada.
Showing up at the front door doing the Ickey Shuffle and wearing a Vince Ferragamo Rams jersey won’t be good enough, so we’ve provided a link to ticket information simply because we’re nice folk. As always, enjoy responsibly.
Are you Skrilling it yet?
Skrill is the iGaming digital wallet that is sweeping the regulated states of the US. It’s a wallet that is dedicated to managing your bankroll: for players who want instant funding and payouts, VIP level limits, underpinned with bulletproof security.
Skrill has been available to players worldwide for 20 years, which means we know more than anyone about online gamers and how they move and make money.
Whilst Skrill is built for everyone from high rollers to Sunday casuals, the more you use Skrill, the better it gets: loyalty bonuses, lower fees, higher limits, 24/7 support and access to events throughout the year.
More than that, Skrill is building a community of players, so you can send money to your buddies or access your funds via your Skrill Visa® Prepaid Card. With integrated sports content and acceptance at your favourite operators, you’ll never feel limited with what you can do with your bankroll.
For more information visit: skrill.com
On the Home Front
We have a feeling we’re going to be using “yesterday’s news” an awful lot between now and April 4th. But hey, ICYMI, PointsBet Canada, theScore and Rivalry are licensed and ready to roll in Ontari-ari-ari-o.
Dave Briggs of PlayOntario.com did the interview thing with native New Brunswicker Sarah Robertson, the senior VP of sales for Kambi, about the company’s recently announced deal with NorthStar Gaming, and other matters.
It would appear OLG is experiencing some growing pains with its revamped retail platform for ProLine, writes Greg Warren for SportsHandle.com.
Also from Warren’s keyboard, some really good insight into player location validation technology as a priority for the new Ontario market.
As reported here last week, OLG is launching a new show called Game Plan. OLG is collaborating with Twitter and Corus-owned so.da on the sports betting series. One of football’s rather extraordinary Joes made an appearance on the curtain-raising show.
Rivalry has itself a sports betting licence to do business Down Under.
And, in case you missed it at the beginning of the week, OLG is the first official sportsbook partner in Canada for the NFL.
And coming to Nova Scotians first thing Friday morning:
Matters of M&A
The chair of Bally’s Corporation broke bread with Sportico’s JohnWallStreet (most likely over Zoom) and discussed consolidation in the gaming space.
Let’s Get Together
CrossBet will be getting a boost from BetMakers as it prepares to enter Ontario.
U.S. Integrity announced a partnership this week with the Oneida Nation to support its sportsbook business in Wisconsin.
Kambi and Kindred Group have each signed the dotted line on a new agreement for Kambi’s B2B sports betting services. The bigger story, however, according to Wagers.com Earnings+More is that Kindred will have its own in-house sportsbook by 2026.
Liz Mullen of Sports Business Journal had the goods first on FanDuel’s new deal with mobile live-sports platform Buzzer.
State Side Stories
In case you need to be reminded (again) why the heart gets pumping a little faster about a regulated gaming industry in Ontario, their neighbours to the south collected more than $61 million (U.S. currency) in state tax revenue last month.
A call to action for the lawmakers in the Empire State to keep a close watch on problem gambling in the new world.
The folks way down in Georgia have fingers and toes crossed that legal sports betting comes to the Peach State in 2022.
Nearly $4 billion was wagered in Colorado last year. Now, that’s a lot of betting on table tennis. . . . .
The FOX Bet sportsbook was having technical difficulties last week (this update came Tuesday). If only that happened with FOX News, especially during prime time hours. . .
Today, legal sports betting in the state of New York. Tomorrow, a casino in New York City. . .
Good reading from the American people’s wire service on why pro sports teams, and sportsbooks, are eager to have retail shops inside arenas and stadiums.
Mobile sports betting in South Dakota clears another hurdle.
American Affiliate has been granted the green light to operate in Louisiana’s new sports betting market.
Jill Dorson and Chris Altruda from SportsHandle.com did a deep dive and discovered a whole lotta money would have been bet in California and Ohio with legal sports wagering. Stakeholders in Ontario can be seen waving their arms frantically. . . . .
Next week’s Fantasy and Gaming Association conference in Las Vegas will have a virtual component to it.
The state of Ohio continues to inch its way towards online gaming.
Speaking of the Buckeye State, the Cleveland Cavaliers have a partner when sports betting is launched there. Rhymes with Jubo Naming.
A new bill in Arizona could open the door to more mobile sports betting licences.
A recent webinar shone a bright light on the impact of gambling ads on problem gambling.
Here’s the latest on the push for the legalization of daily fantasy sports in NY.
Speaking of shining a light, the NBC Today Show featured the rising popularity of online sports betting this week.
The latest on the sports betting landscape in the U.S.
While sports betting isn’t yet legal in Minnesota, three tech companies in the state are banking on the Super Bowl to boost business.
Across the Pond
Mum’s pretty much the word from the CEO of Betsson Group on plans for Ontario and the Netherlands.
The down low on UK sportsbook operators who wrote a cheque for a responsible gambling charity last year.
Swedish-based Betsson Group is bringing its iGaming business to Buenos Aires.
Lloyd Danzig and his Sharp Alpha Advisors firm is a leading investor in a seed funding round conducted by an Israeli-based motorsport technology company.
An Australian casino company is writing a lot of cheques for a lot of money (or using e-transfer) after shortchanging its employees for five years.
In addition to its Avid Gaming acquisition this week, Entain is also planning to enter the metaverse.
The iGB Affiliate London conference in mid-April will have a decided American flavour to it.
Entain is joining the Global Gaming Alliance, a group of gaming and technology companies calling for higher standards and safeguards to better protect gamblers.
Quarter(s) Pole
Toronto-based Enthusiast Gaming released its preliminary Q4 2021 results Tuesday.
Penn National’s Q4 2021 financials included the completion of its acquisition of Score Media and Gaming.
Vancouver-based FansUnite Entertainment reports that 2021 was a very good year for its McBookie business.
Kindred Group’s revenue from harmful gambling saw a small QOQ uptick in the fourth quarter of 2021.
Gambling Group is projecting a bigly rise in revenue for its preliminary 2021 financial results.
Swedish online gaming behemoth Evolution has also put out its 2021 financials.
Esports Technologies had a rather profitable first quarter for 2022.
Quick Hits
The CEO of a sports tech company wrote more than a few bon mots on how micro betting will change the sports landscape.
The International Betting Integrity Association is planting its flag in both Canada and the U.S.
Barstool Sports founder Dave Portnoy is taking digital publication Insider to court.
The Athletic’s survey of NHL agents included a sports wagering reference.
A tick tock of sorts on the company that opened the floodgates to crypto’s plunge into the sports industry last year.
Sports Info Solutions CEODan Hannigan-Daley provided his own take on the future of sports.
Last week’s submission to The Toronto Star from your humble author served as a primer for wagering on the Winter Olympics. This piece helps explain the high level of betting engagement with biathlon. Really. . . .
The president and CCO of Strive Gaming presented an abbreviated state-of-the-company address with an eye towards 2022.
People on the Move
Global gaming provider Zitro names Derek Mooberry as the new CEO of Zitro USA as it looks to expand in the U.S. and Canada.
Classified (Job) Information
PointsBet Canada has an opening for a Sports Betting Loyalty Manager.
Bally Sports is hiring a Chief Operating Officer/General Manager for their DTC streaming service.
A betting and casino business is seeking a Chief Operating Officer. For more information, contact Jonathan Revie at Bettingjobs.com (Jonathan@bettingjobs.com).
Wanted at Maple Leaf Sports and Entertainment: a Manager, Creative Strategy.
Toronto’s professional baseball club is looking for a Director, Partnership Marketing.
The very, very good people at The Gist are hiring a Managing Editor, U.S. of A.
Canada’s Sports Hall of Fame is searching for a Lead, Partnerships & Engagement.
Hockey Canada is hiring a Director of Sports Safety.
The PGA Tour of Canada is seeking a Communications Specialist.
About the Numbers
Hey, it’s Super Bowl Week, so of course this week’s ATN is all about the big game.
According to a poll conducted by the Responsible Gambling Council, 42 per cent of Ontario sports bettors will lay at least one wager on the Rams-Bengals game.
Beware the safety prop bet, writes ESPN’s David Purdum.
Mattress Mack is all over the Bengals like an offensive line tucking in their napkins at a ribfest.
And, something to consider when tossing a toonie or two on the Super Bowl MVP.
Finally, a sneak peek at the DraftKings commercial that’ll appear in the U.S. on Sunday:
And from FanDuel:
Follow us @TheParleh on Twitter for our daily picks and other video content. And for the latest news on the industry, go to @ParlehM.
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