Canada’s original gambling industry – horse racing – has been in the news a lot this year; some of it good, some of it the usual long list of challenges.
(And, before we go any further, from the Dept. of Full Disclosure, the author of this section of the newsletter works as the communications person for Ontario Racing, which oversees the province’s horse racing industry).
As we previously reported around the 167th running of the King’s Plate at Woodbine, the biggest news was increased funding from the Ontario government of $35 million per year for each of the next five years.
The vast majority of the money has been used to help the participant side of the game by raising purses and increasing funds in breed development programs. Since horse racing’s funding is largely dependent on wagering, and betting handle on the ponies has been negatively impacted by, among many things, Ontario’s massive open online gambling sector, the increased funding was extremely welcome news in the horse racing industry.
Purses that fund the expensive pursuit of breeding, raising, training and racing horses, had been largely stagnant for a decade prior to the additional government funding. Meanwhile, high inflation has made campaigning horses more expensive than ever.
Beyond tackling inflation, the main reasons Doug Ford’s government was willing to increase funding are two-fold: the industry supports a lot of jobs and most of them are in rural communities where Ford’s Progressive Conservatives are particularly strong.
In Ontario alone, live horse racing is still conducted at 14 racetracks and it supports some 18,000 jobs. Based on Ontario Lottery and Gaming Corporation (OLG) numbers, the horse racing industry in Ontario annually injects over $1.9 billion to the Ontario economy and provides approximately $330 million in provincial taxes.
Still, horse racing has its challenges. Last December, racing shut down at both Hastings Park in Vancouver and Fraser Downs in Surrey, BC. This year, the Hard Rock Casino announced it was ceasing horse racing at its Rideau Carleton Raceway in Ottawa.
And, the sport continues to face an aging and declining fan and bettor base.
That’s why it was encouraging to hear that John Hayes, the new/old independent chair of Ontario Racing, say one of his top priorities will be expanding the wagering offerings to help horse racing appeal to younger customers and drive the very handle that funds most of horse racing’s operations.
“[New bets are] what new potential customers would look at, rather than win, place and show and exotics,” Hayes said.
Hayes, who was previously the independent chair of Ontario Racing from 2018 through 2022, returned to the position on Nov. 1 after Andrew Gaughan announced he would not seek an additional term in the role.
New bets would require the approval of the Canadian Pari-Mutuel Agency (CPMA), and it’s a tricky issue.
Prior to the launch of single-game sports betting in Canada in August of 2021, the horse racing industry, led by the largest racetrack outfit, Toronto’s Woodbine Entertainment Group, successfully lobbied the feds to ban gambling operators from offering fixed-odds wagering on horse racing, which has traditionally been a pari-mutuel gambling product. Pari-mutuel means bettors are wagering against each other, not the house, which takes a cut for putting on the product.
The reason horse racing fought against fixed-odds wagering was simple: it frequently does not provide large enough margins to support the expensive endeavour of racing horses. The concern was it would be something of a death spiral: lower fixed-odds margins would lead to lower purses, driving more people out of the game and decreasing the very field size that attracts betting handle, which would lower handle and further reduce purses.
The challenge is pari-mutuel wagering is less attractive to bettors, particularly younger bettors who are used to that system while betting on other sports. Few things frustrate a new pari-mutuel bettor more than betting on a horse at 5-1 and getting less attractive returns for their wager thanks to late betting fluctuations and fluid odds.
So, now the horse racing industry is studying how it might be able to add a fixed-odds betting product that drives enough revenue to support the product.
In the meantime, Woodbine has been successful at getting its pari-mutuel product on two Ontario betting platforms – bet365 and the OLG’s Proline – with the bets being routed through Woodbine’s tote system.
Getting horse racing on more sites would likely help drive a little handle and, at the very least, exposure for the sport, but that’s proven challenging, so far.
Another challenge facing the sport is the fact it is at a major competitive disadvantage compared to the United States when it comes to attracting investment in horses.
In the U.S. 100 per cent bonus depreciation means a person can write off all of their horse purchases against another business. In Canada, owners are capped at a deduction of $17,500 due to a tax rule known as Section 31.
For nearly two decades, horse racing has tried to get Section 31 repealed with little luck. The argument the industry makes is no other sector is subject to such restrictions. Though, at least Prime Minister Mark Carney appears to be very investor-friendly, as we saw in the recent budget. The hope is it will eventually lead it to scrap Section 31, giving Canadian horse owners the same tax fairness as other sectors, and putting them in lockstep with U.S. horse owners.
Again, encouraging horse ownership helps drive field size, which drives wagering, which better supports an industry that is labour-intensive.
Meanwhile, in Alberta, there was big news at the end of September when the Highfield Investment Group announced it had purchased Century Downs and Century Mile, two biggest horse racing tracks in that province, for $16.4 million total. The tracks were previously operated by Century Casinos.
Why this is interesting – besides the fact the Calgary track (Century Downs) and the Edmonton track (Century Mile) both have casinos – is the fact Highfield’s portfolio includes the breeding and training of thoroughbreds at its Highfield Stock Farm near Okotoks, AB. To put it in simpler terms: that means the two tracks are going to be operated by horse racing participants.
Frequently, horsepeople say they could do a better job running racetracks. We’re about to see if that is true in Alberta.
Beyond the jobs part of all this, like hockey and comedians, Canadians often punch above their weight class when it comes to horse racing. Ontario is truly a world-class horse racing jurisdiction, and that was never clearer than last Friday when Ontario-sired standardbred Beau Jangles – the reigning U.S. and Canadian Horse of the Year in harness racing and a prime stallion candidate – sold at auction in Harrisburg, PA, for a $3.7 million (U.S.).
That sum was double the previous record for a standardbred selling at auction of $1.85 million.
Beau Jangles, who was bred at Tara Hills Stud in Port Perry, ON, and did the bulk of his racing at Woodbine Mohawk Park in Campbellville, ON, had a strong following on the racetrack. In the auction ring, he certainly provided a much-needed jolt of excitement for a sport with its share of challenges.
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New Yorker piece on Jontay Porter raises many Spockian eyebrows
Let’s call it several splashes of fuel on the fire that is criticism of gambling across North America these days.
Nick Berardini’s profile of Jontay Porter and the banned NBA player’s gambling addiction in the latest edition of The New Yorker have had fingers wagging and pounding the keyboards on iPhones, Androids, Macs, PCs (well, you get the picture) since the feature story dropped Monday.
If you don’t have a subscription to the digital magazine, Berardini speaks about the piece in video form (with footage of Porter) and there’s a summary of his excellent reporting here. Also, Gaming News Canada collected a small sample of the reaction to Berardini’s reporting, including Porter’s relationship with FanDuel and illegal bookmakers, betting millions of dollars on table tennis, his decision to manipulate his performance while playing for the Toronto Raptors, and what stopped him from taking his own life at a shooting range:
One of the most eyebrow-raising sections in The New Yorker piece is Porter’s relationship with a FanDuel VIP employee who gave the gambler bonuses of $10,000 to make more bets.
Another was Porter receiving an email from FanDuel asking if he wanted to reactivate his account after being suspended by the NBA (Porter is still awaiting sentencing after pleading guilty to a federal charge of conspiracy to commit wire fraud).
Also, regarding VIP practices, DraftKings has sent a letter to a U.S. Congressional inquiry acknowledging it sent a personalized Cameo video to a gambler from New York Knicks guard Miles McBride.
Berardini’s reporting also tells the story of the evolution of online sports betting, including opposition from North American professional sports leagues to legalize betting to those same leagues doing an about-face when the U.S. Supreme Court overturned the Professional and Amateur Sports Protection Act in 2018, to those same leagues taking money from regulated sportsbooks and their data partners in the U.S. and Canada.
It’s the same story for broadcasters, which have raked in billions of dollars in partnership and advertising money from online gambling operators over the past eight years on both sides of the border. For example:
During his most recent appearance on the Gaming News Canada Show, Canadian Gaming Association president/CEO Paul Burns, speaking about efforts by the federal government to pass Bill S-211, spoke about the need for the leagues and broadcasters to join the conversation when it comes to regulation of the Canadian gaming industry.
“Broadcasters and league partners need to work together a little bit more at looking at the outcomes from all of this (discussion around advertising),” Burns said. “We want to have a better dialogue with them. They have a role in the gambling industry because they’re in the gambling industry.
“They’re profiting from the sponsorships and advertising (and) we want to see more cooperation.’’
AGCO a supporter of IAGR’s new Illegal Gambling Awareness Week
Last weekend, as we were scrolling through ye olde Instagram catching up on the lives of family members, we were subjected to the usual barrage of fake/illegal online casino ads.
To wit:
On Monday, while sifting through the internets, we came across a LinkedIn post from AGCO COO David Phillips with the 411 on the International Association of Gaming Regulators’ inaugural Illegal Gambling Awareness Week. The initiative includes checkbeforeyouplay.org, a website “tool to help consumers identify and avoid illegal or unregulated online gambling sites”.
“Illegal gambling isn’t a victimless activity,” wrote Phillips, who is an IAGR vice-president and trustee on the organization’s board. “It exposes consumers to real risks, from unpaid winnings and misuse of personal information to the absence of the safer gambling and consumer protections that come with regulated markets.”
The Canadian section of the IAGR’s new website is a work in progress with only information appearing from Ontario, British Columbia and Manitoba on those provinces’ regulated gambling operators.
A news release from the AGCO on Monday announced the commission’s support of Illegal Gambling Awareness Week and the Check Before You Play campaign. iGaming Ontario also gave the initiative a thumb’s-up.
“Ontario’s regulated igaming market is built on clear standards that protect players, from responsible gaming safeguards to strong anti-money laundering controls,” said AGCO CEO and Registrar Dr. Karin Schnarr. “Sites operating outside that framework may offer none of that protection, and they can look just as legitimate. The AGCO is proud to support Illegal Gambling Awareness Week because Ontarians deserve to know who they’re dealing with before they place a bet.”
Speaking of Schnarr, she’s our guest on the next episode of the Gaming News Canada Show presented by Bede Gaming, and discusses the commission’s current work when it comes to fighting illegal operators. That includes improving cooperation with Meta when it comes to the posting of phoney igaming operator ads.
As we’ve mentioned before, our emails to the communications team at Meta have gone unanswered. Suffice to say, there’s still work to be done.
Niagara Falls’s new mayor says not so fast on casino-expansion plan
For Douglas Ford, it’s full steam ahead with the Ontario government’s plans for Las Vegas North.
On the other hand, the new mayor of Niagara Falls is saying ‘not so fast, Kaputnik’.
Lori Lococco, who knocked off long-time incumbent major Jim Diodati in last month’s municipal election, said last week she’s seeking community feedback about Ford’s Destination Niagara strategy to bring more casinos to the Falls. In a letter to Minister of Tourism, Culture and Gaming Zee Hamid – and obtained by the Toronto Sun – the two-term councillor requested input from beyond the province.
“I would welcome a provincially led public information and consultation process, or a collaborative process involving your ministry, the Ontario Lottery and Gaming Corporation, and the City,” Licocco wrote. “The information provided should explain the anticipated benefits, potential community impacts and proposed safeguards, including considerations related to local employment, infrastructure, municipal revenues and responsible gambling.”
Hamid said there’s already a spirit of collaboration in place by the province.
“We’ll continue listening to the community and their elected officials … (including) mayors and councillors in the entire region and Niagara Falls,” he said.
Ford, meanwhile, made it clear he’s all in on moving ahead.
“You can’t just sit back,” the premier said. “It’s not good – it’s just not a great destination. We want to make it the greatest destination in the world, and status quo is unacceptable.”
Count FanDuel among the operators bullish on Alberta
Well, you can include the proprietors of FanDuel among the folks feeling really, really good about being in business in Alberta.
Speaking about Flutter’s third-quarter financials on an investors call last week, new CEO Dan Taylor was rather ebullient with FanDuel’s entry in Canada’s second regulated sports betting and igaming market back in mid-July.
“Alberta is the first new online casino market for some time. The success there has astounded us,” Taylor said on the call. “We’ve reached 20 per-cent-plus market share within the first quarter, which is already well ahead of where we thought we would be, particularly given there were existing grey-market operators in that [province] beforehand.”
Taylor also pointed to an overall rosy picture around FanDuel’s online casino business with new products and features – combined with the Alberta launch – provided a spike in player frequency of 12 per cent and Average Monthly Player growth of 24 per cent in North America.
As Tom Nightingale pointed out in a Canadian Gaming Business piece on the financial results, the arrival of Alberta’s regulated market is a boon to operators doing business in North America. The acceptance of regulated igaming in U.S. states continues to be an uphill battle, and we wonder if the predicament around prediction markets makes elected officials south of the border even more reluctant to regulate online casino games.
In his article, Nightingale pointed to a quote from FanDuel senior veep Cory Fox during a panel discussion on the Canadian gambling market at the Global Gaming Expo in September.
“Canada has, for quite a while, been one of the best opportunities for North American online gaming operators,” said Fox, sharing the stage with Service Alberta Minister Dale Nally, Alberta iGaming Corporation chief legal beagle Steve Inglis and GeoComply VP Elizabeth Cronan. “When new jurisdictions and provinces open within Canada, they typically include both casino as well as sports betting, which is hard to come by in U.S. jurisdictions.
“There is also a real history of online gaming in Canada. It’s happening in the grey market, but that allows the regulated operators to really quickly establish a business.”
Montreal’s the site for a gaming industry gathering
During your cordial editor-in-chief’s conversation with Paul Burns on this week’s Gaming News Canada Show presented by Bede Gaming, the topic came up about the deep talent pool across the country with regards to the gambling industry.
That includes Montreal, hence, the motivation for acquire.bet head honcho Allan Petrilli to organize a gathering of industry types at the Lord William Pub on November 26.
“There is a large igaming community in Montreal - much larger than most people here assume, and it is time we start getting people together,” wrote Petrilli in a LinkedIn post.
The CGA is lending a helping hand to the event and registration is available here.
People on the Move
Morten Pedersen Tonnesen is appointed interim Chief Executive Officer at Bragg Gaming.
Former Product Madness senior veep Matthieu Labbat is named CEO at SciPlay.
Bluberi names Kate Lowenhar-Fisher as Chief Legal and Compliance Officer.
Booming Games name Darja Roos as Chief Financial Officer.
At Sportbet, Christina Ruiz is appointed Chief Product Officer and Kathy Schokman as interim Chief People Officer.
Matthew Cullen, ex of EDGE Markets and BetPARX, joins Trustly as Senior Vice President & General Manager.
Mikkel Munch-Jacobsgaard has more responsibility in his new role at Better Collective as Senior VP, Group Strategy, Investments & Investor Relations. Craig Harman is appointed VP, Product and Technology.
John Robinson has a new position at Electronic Arts as VP and General Manager, New Business.
Catena Media promotes Stefan Grech to Senior VP, Technology.
Hard Rock International promotes Trudie Yau to Vice President, Player Development.
Betty appoints ex-WeWork legal beagle Jane Wang as General Counsel and Joel Wilson as Vice President of Capital Markets.
Gavin Knapp, ex of Light & Wonder, joins Aristocrat Interactive as Vice President, Content Operations.
Frank Legato will retire as Editor-in-Chief of Global Gaming Business at year’s end but will continue to write for the media company.
Former Digitain exec Anna Alikhanyan is named Head of Strategy & Financial Control at Ineco Group.
At IC360, James Lephew is named Deputy Managing Director & Executive Managing Director, Financial Crimes Advisory.
Abhirup Mukherjee joins Midnite as Head of Product, Real Money Gaming.
Stephen Grech is promoted to Head of Operations at Swintt.
Akrivi Papadaki joins The Alcohol and Gaming Commission of Ontario as Senior Advisor, Corporate Performance and Prioritization.
Christian Erlandsson departs his Director of Sports gig with Coolbet to join Kambi as Director of Product – Acquisitions and Retention.
Evan Essig is appointed Director of Compliance at Aristocrat Gaming and Jerome Moulin-Comte is named Director, Supply Chain Planning & Procurement.
The Malta Gaming Authority names Kim Dalli as Director of PR, Events & Communications.
Aidan Roy has a new gig at Atlantic Lottery as Manager, Media & Performance.
Marta Parry-Jones is promoted to Group Corporate Communications Manager at Allwyn.
Nicolo Venturoli has a new role as Playersbest as Business Development & Partnerships Manager.
Jack Alisat has a new position at OLG as Manager, Customer Care – Performance Enablement, Customer Success & Recovery Team.
Courtney Zahara is named Creator Marketing Manager at Bet99.
Classified (Jobs) Information
On the Home Front
The Saskatchewan Liquor and Gaming Authority is hiring a Director, Gaming Integrity and Licensing Branch.
Ahead of its Ontario launch, Midnite is seeking an Anti-Money Laundering Lead, a Fraud Lead and a Responsible Gaming Lead.
Eilers & Krejcik Gaming has paid contract opportunities in Canada with its Product Analyis team.
The Alberta iGaming Corporation is on the lookout for a Senior Accountant.
AGLC requires a Manager, Contracted Services.
Wanted at the Alcohol and Gaming Commission of Ontario: a Senior Human Resources Business Partner.
The Saskatchewan Indian Gaming Authority is seeking a Marketing Cloud Technologist and an Advertising Specialist.
BCLC is hiring a Manager, Indigenous Relations.
OLG is searching for an External Accounting Advisor.
Betty has an opening in Toronto for a Brand Marketing Analyst.
Tonybet is seeking a Brand Manager, Canada.
In Ottawa, the people’s wire service has need of a Reporter Editor, Parliamentary Bureau.
CTV News in Atlantic Canada is looking for a News Director.
There’s an opportunity at Tennis Canada for a Marketing Advisor.
South of the Border
ALT Sports Data has an opening for a Senior Account Executive, Operator Sales.
In New York, Fanatics Betting & Gaming is hiring a Senior Manager, Strategy & Operations.
In LA, PENN Interactive is seeking an Account Executive.
DraftKings has a remote opening for a Manager, Knowledge Management.
BetMGM is on the lookout for a Senior Portfolio Manager.
FanDuel is searching for a Product Advisory Manager.
White Hat Studios has an opportunity for a Key Account Manager.
There’s an opening at Front Office Sports for a Director, Branded Content and a Manager, Partnership Marketing.
Wanted at Netflix: a Product Manager, Sports Experience.
Across the Ponds
Relax Gaming is searching for a Senior Compliance Manager.
Ontario and Alberta licensee Betty is looking for leaders to join the company as CEOs for new regulated gaming markets.
Wanted at LSports: a Chief Marketing Officer.
For Your Perusing Pleasure
ConnexOntario executive director Nerin Kaur lent her voice to a new Health Canada report on men and boys.
Mark Keast of Casino.org reported on a recently released study on the growing popularity of online gambling in Montreal, including reaction from the Quebec Online Gaming Coalition.
Some folks at McCarthy Tetrault did a deep dive into the Financial Action Task Force’s Mutual Evaluation Report on Canada’s AML/ATF structure.
Speaking of AML, Kinectify global guy and Canadian Gaming Association board member Derek Ramm weighed in on the introduction of Bill S-8 in the Senate last week.
On a new episode of the Safe Bet Show, Marty Lycka spoke with the brothers Segev about the changing gaming scene on the north side of Lake Ontario.
GeoLocs guys Owen Compton and Will Whitehead spoke with Fernando Noodt of Canadian Gaming Business about some takeaways from the first three-plus months of the Alberta market.
Four Calgarians have parlayed their friendship into a $90 windfall via the Lotto Max.
Workers at Great Canadian Entertainment casinos in Ajax and Pickering (Ontario) headed back to work Monday after voting in favour of a tentative collective bargaining agreement.
The sale of lottery tickets at Dollarama stores in Quebec is raising some eyebrows.
Artificial intelligence, wrote Danielle Groen of The Globe and Mail, is raising a ruckus in the world of fantasy sports.
On Grey Cup week, FanDuel and Nickelback are getting together to support both the Calgary Food Bank and the CFL Alumni Association Support Fund.
Meanwhile, theScore Bet has . . . er. . . inked a deal with tattoo business to open a pop-up tat shop in Calgary.
Evoplay and St8 are getting together with an eye on Evoplay’s existing Ontario business.
Soft2Bet launched Monday its third brand in Ontario’s regulated market. Betinia will offer igaming and sports betting to customers.
Dr. Sanjay Gupta, on CNN’s Chasing Life podcast, covered a wide swath of topics around online gambling including some advice for parents.
Bloomberg journalist dug into three years of data around online sportsbooks operating in Massachusetts.
An interesting read from Suswati Basu of Gambling Insider around the rigged-pitches case involving MLB pitchers Emmanuel Clase and Luis Ortiz.
The headline hit the nail on the head for Jeff Edelstein’s piece on the bunfight between election forecasters.
There appears to be a desire by Democrats to put more guardrails around prediction markets.
Speaking of the Democrats, one of the post-election stories to follow in the gambling space focuses on Texas.
Speaking of the Lone Star State, Dallas Cowboys owner Jerry Jones reiterated his support for a regulated market.
Sports Betting Dime’s Robert Linnehan took a broader look at the potential impact of the midterms.
Covers guy Ryan Butler wrote on what could happen in New York with iGaming and prediction markets post-election.
And Steve Ruddock put the proverbial Pro-V on the tee for today’s scheduled Congressional hearing on sports betting across U.S. college campuses.
Very nicely done by the Gaming Intelligence editorial team in perusing and summarizing the latest financials from Genius Sports.
Flutter CEO Dan Taylor spoke last week with Barron’s journalist Nick Devor about FanDuel’s trial for a digital rips product.
From Betway proprietor Super Group’s Q3 financials:
On Monday, the UK Gambling Policy Commission announced the launch of an independent review of the legislative framework governing gambling.
A 2025 evaluation by the Intercantonal Gambling Supervisory Authority shows continuing risks in sports betting and problems with age controls at retail outlets in Switzerland.
There’s a new study in the Scandinavian Journal of Public Health around “electronic gambling machine availability and area-level socioeconomic disadvantage associated with local residents’ gambling losses and share of local revenue”.
Scott Longley and the earnings+more gang led Monday’s newsletter with reaction to DraftKings’ latest financials.
Peru’s gambling regulator has plans to expand its authority.
NEXT.io grand poobah Pierre Lindh posted on the LinkedIn a response to news from SiGMA World that it’s moving its spring conference to May, hence going head-to-head with NEXT’s Valletta gaming gathering.
Geez, even Warren Buffett is talking about betting on sports.
High Roller Technologies has launched its ROLR iPhone app.
There was reporting Monday from Andrew Marchand of The Athletic that Dianna Russini, the publication’s former NFL insider is returning with a streaming show on BetUS TV’s website.
Finally, for the folks who share our geekdom around communications/PR, Richard Deitsch summarized a Sports Business Journal roundtable discussion on the topic.
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