Canadian Gaming Business Fall 2022

Canada's Premier Gaming Industry Magazine

Vol. 15 - No. 2 - Fall 2022

CANADA

THE EVOLUTION CONTINUES With Ontario’s market launch half a year ago, online gaming has been thrust into the limelight www.CanadianGamingBusiness.com

EDITOR'S n o t e

HELLO. WELCOME TO THE FALL EDITION OF CANADIAN GAMING BUSINESS! WELCOME TO THE FALL 2022 EDITION of the Canadian Gaming Business magazine. Please, allow me to introduce myself and SBC to you.

I am Charlie Horner, Business Journalist for SBC. I have to admit, I'm not Canadian.

I'm actually based in a city called Manchester, which is tucked away in the North-West of England. But like some parts of Canada, it's a bit cold and sometimes rainy.

Whilst I may not be familiar with the likes of poutine, the mounties, or the lyrics to every Justin Bieber song, I'd like to think I have become well versed in the developments taking place across the Canadian gambling market through my work on our news portal, SBC Americas. And it's safe to say that I’m excited to take the reins of this edition of this magazine.

SBC has completed the deal to acquire both the Canadian Gaming Business magazine and website, as well as the Canadian Gaming Summit, which will return to the Metro Toronto Convention Center next June, adding to the company’s events and media portfolio.

I would like to thank the previous editor of Canadian Gaming Business, Tom Nightingale, for being so accommodating and helping with the transition for this edition, as well as Chuck Nervick of MediaEdge - thanks for the help!

This edition sees Canadian Gaming Business continue to break down and analyze what has happened in Ontario since its launch back in April; we have the thoughts of theScore, AGCO, and more on Ontario’s market developments over the last six months.

Meanwhile, we also gain the perspectives of other key players in the Canadian industry, including from British Columbia Lottery Corporation on diversity and inclusion, and OpenBet on its latest deal to power sports betting in Saskatchewan. Tackling illegal gambling is on the agenda as the Lotteries Coalition reveals how it is putting pressure on the federal government to intervene in unlicensed, offshore sportsbooks and online casinos.

Payments take the spotlight, too, as several key industry players analyze how alternative payment methods can help operators in their customer acquisition and retention strategies.

We also have valuable contributions and insights from the likes of Receptional, VIXIO GamblingCompliance and Better Collective on insightful research conducted into the early stages of the Ontario regulated market with regards to marketing, how other provinces could follow suit and player trends.

This is just a taster of what is to come in this Fall edition of the CGB magazine - there are plenty more insights throughout!

Charlie Horner Managing Editor

Canadian Gaming Business | 3

CONTENTS Fall 2022

Volume 15 No. 2

The Canadian Gaming Business Magazine is brought to you by SBC - Sports Betting Community: Managing Editor

Charlie Horner

Editorial Team

Charlie Horner, Martyn Elliott, Andrew McCarron, Jessica Welman, Conor Porter, Nick Ware, Viktor Kayed, Erin Gallagher, Craig Davies, Ted Menmuir, Joe Streeter, Chris Murphy, James Ross, Lucia Mouriño, Jessie Sale, Fernando Noodt Molins, Callum Williams, Lucia Gando, Ted Orme-Claye, Danny Lee.

Sales Team

Rasmus Sojmark, Alyona Gromova, Conall McCabe, Jan Kowalczyk, Richard Deacon, Bob McFarland, Craig Brown, Juan Ospina

Layout & Design

Jessica Camilleri

Produced and published by Sports Betting Community Ltd:

All material is strictly copyrighted and all rights are reserved.

No part of this publication may be reproduced in whole or in part without the written permission of Sports Betting Community Ltd. Although every effort has been made to ensure the accuracy of the information contained in this publication, Sports Betting Community Ltd cannot be held responsible for any errors it may contain. Sports Betting Community Ltd cannot be held responsible for the loss or damage of any material, solicited or unsolicited. The views in the publication are not necessarily the views of Sports Betting Community Ltd or those of the advertisers.

Registered address: SBC, Riverbank House, 1 Putney Bridge Approach, London, SW6 3JD Tel.: +44 (0) 161 367 1250 Email: sales@sbcgaming.com Web: www.sbcgaming.com

Official Publication of the Canadian Gaming Summit

4 | Fall 2022

www.CanadianGamingBusiness.com

MESSAGE FROM THE CGA

FEATURE

7

16

Looking forward to new challenges

22

INFO 11

SBC prepares for Toronto debut at Canadian Gaming Summit 2023

INTERVIEW 8 Mohegan: Land-based casinos can go 12 18 20 34 38

hand-in-hand with online gaming

Lotteries Assemble! How a coalition is tackling illegal operators

32 36 40

Welcome to the party? Assessing the challenges other provinces face when following Ontario Receptional: How to win in sports betting in Ontario Seamless onboarding to help Canadian gambling operators get ahead of the game The Four Ts & the Canadian gaming opportunity Are Canada’s sportsbooks set for a soccer gold rush?

theScore Bet: Helping customers ‘Get Into Bet Mode’

SBC SUMMIT NORTH AMERICA

Sandy Austin: Spearheading BCLC’s 5-star pursuit of D&I excellence

24

Relax Gaming: How jackpots have evolved to suit the modern player

28

Kambi: Standing out in a ‘unique battleground'

CANADIAN GAMING SUMMIT 26

30

OpenBet: SIGA deal indicative of Canada's growth

The alternative payment methods that are driving player engagement in Canada

Ontario: Attracting and retaining users in a highly competitive gaming market Dave Phillips: Building the regulatory foundations for Ontario

INDUSTRY PROFILE 42

Better Collective: How are things in Ontario so far?

Canadian Gaming Business | 5

THANK YOU TO ALL SPONSORS PLATINUM SPONSORS

PROVINCIAL GAMING SUMMIT HOST

SILVER SPONSORS

GOLD SPONSORS

BRONZE SPONSORS

VIP RECEPTION SPONSOR

LANDYARD SPONSOR

OFFICIAL WELCOME EMAIL SPONSOR

WIFI SPONSOR

HOTEL KEY SPONSOR

HAND SANITIZING STATION SPONSOR File Name:

Project Name:

Created By/Revised By:

Date Issued:

DB Full CMYK Rev Ball H.ai

Delta Bingo^Gaming

Stephen Cole

Nov 30, 2015

SUMMIT GOLF TOURNAMENT SPONSOR

SPORTS BETTING SECTOR SPONSORS

NAME BADGE SPONSOR

RG SECTOR SPONSOR

WHISKEY BAR SPONSOR

spcole.com

LEGAL SECTOR SPONSORS

REGISTRATION AREA SPONSOR

DELEGATE GIFT SPONSOR

Variation

Full CMYK

IGAMING SECTOR SPONSORS

DESSERT & COFFEE SPONSOR

PAYMENT SECTOR SPONSORS

SHOW GUIDE SPONSOR

SUMMIT SOCIAL SPONSOR

RUBICON STRATEGY BASES SECTOR SPONSOR

COFFEE & CONDIMENTS SPONSOR

BAG SPONSOR

ADVISORY SERVICES SECTOR SPONSOR

ONLINE/WEBSITE REGISTRATION SPONSOR

KYC & PLAYER PROTECTION SECTOR SPONSOR

INDUSTRY RESEARCH SECTOR SPONSOR

ONLINE CASINO SECTOR SPONSOR

SUPPORTING SPONSORS

CONSULTING SERVICES SECTOR SPONSOR

2022 PROVINCIAL LOTTERY & GAMING CORPORATION EDUCATION PROGRAM DEVELOPMENT PARTNERS

2022 SUPPORTING INDUSTRY PARTNERS

me ssa ge from CG A

PAUL BURNS: LOOKING FORWARD TO NEW CHALLENGES

BY PAUL BURNS, PRESIDENT AND CEO, CANADIAN GAMING ASSOCIATION

The Canadian Gaming A ssociation (CGA) is having a busier than normal year.

In addition to all our advocacy work, which I’ll touch on shortly, we also completed the sale of the Canadian Gaming Summit and Canadian Gaming Business Magazine to SBC. We’re thrilled to be the ‘Off icial Pa r t ner’ of t he 2 0 2 3 Su m m it ( back in Toronto!) and we will continue to support SBC however we can.

Our membership has grown exponentially this year and we look forward to seeing as many of you as possible at G2E in October.

I n t he mea nt i me, t he CGA’s B oa rd of Directors has initiated a process to create a new strategic plan for the Association.

O u r pr e v iou s pl a n , ‘ C G A 2 . 0 ’, w a s l au nche d i n 2 018 a nd s er v e d u s w el l through a very challenging time. Now we have a large membership base representing the top operators and suppliers in the global gaming industr y, and we need to update our roadmap. Members are currently being invited to complete a survey or participate in a focus group to help shape our direction.

Turning to our advocacy efforts specif ic to the launch of Ontario’s igaming market, as with any new market, growing pains are to be expected. On behalf of our igaming operator and supplier members who have business in Ontario, we have been liaising directly with both the Alcohol and Gaming C om m i ssion of O nt a r io (AG CO) a nd iGaming Ontario (iGO) to provide feedback on issues and seek clarification on standards.

A n e x a m pl e i s a f f i l i a t e m a r k e t i n g .

Operators are responsible for their suppliers, including affiliates, which aren’t individually licensed by the AGCO. Since the market launch on April 4, affiliate compliance has

been an ongoing issue and the work to identify non-compliance is labor-intensive and time-consuming for operators. The CGA reached out to the AGCO and asked them to engage with the industry to identify a more tenable solution for everyone and the AGCO has agreed to our request.

Focusing on AML, Canada’s Proceeds of Crime Money Laundering and Financing of Terrorism Act (PCMLFTA) requires the act to be reviewed ever y f ive years. The CGA’s Regulatory Innovation Committee launched its first sub-committee last winter in anticipation of this window opening to provide recommendations to modernize the PCMLFTA, as many of the provisions related to the g aming industr y require revision. The sub-committee will provide fe e db a ck for c on su lt at ion a nd i s a l s o working on a white paper to discuss how the industry’s adoption of emerging technology (cr y ptocurrencies, geolocation, cashless wagering) can streng then the industr y’s efforts to combat money laundering.

And f inally, retail sportsbooks. It's been just over one year since Bill C-218 – the Safe and Regulated Sports Betting Act – was proclaimed into law and there are still no retail sportsbooks operating in Canada.

It is disappointing that the provinces have not prioritized giving land-based casino operators the opportunit y to build their businesses back to pre-Covid levels.

T here’s no shor t a g e of work for t he Association, and I’d like to thank our Board and our members for their support. Lastly, my sincere thanks to SBC for inducting me into its Sports Betting Hall of Fame in July – I am honoured to be included with so many distinguished industry representatives.

Canadian Gaming Business | 7

MOHEGAN:

LAND-BASED CASINOS CAN GO HAND-IN-HAND WITH ONLINE GAMING Mohegan Gaming and Entertainment speaks to Canadian Gaming Business about the relationship between online gaming and land-based casinos and breaks down whether the former is a threat to its Fallsview Casino Resort.

BY JESSICA WELMAN

8 | Fall 2022

inte r v i ew

“We don't believe that there will be significant cannibalization; we think that this is going to be accretive to our business”

Once upon a time, in the not-toodistant past, brick-and-mortar casino operators thought online gambling was coming to ruin their business.

Now, many consider online casinos and sportsbooks as an extension of their business, appealing to an entirely different audience. For Mohegan Su n a nd it s Ont a r io la nd-ba sed casinos though, the relationship is not linear, it is circular. And the idea of cannibalization? Well, they don’t buy it.

“Online gaming has been alive and well in the province of Ontario for probably 15, if not 16 years,” Niagara Casinos President Richard Taylor noted. “To say it's now going to start to cannibalize our business? Well, if it was, it would have already done so. So we don't believe that there will be significant cannibalization, to the opposite, we think that this is going to be accretive to our business.”

Mohegan’s approach isn’t about thinking of online gambling purely as a new, additive market, it is about thinking through how the two can work together to grow the offering Fallsview can offer its customers.

For ex ample, any patrons w ith a M oment u m c u s t omer lo y a lt y membership from Fallsview can earn loyalty points playing on the PlayFallsview online casino and online sports betting sites, both of which soft-launched in August. The opportunity extends beyond loyalty points though, which is why the digital arm and the Fallsview brass are working together to create a unique experience rooted in retail in Ontario.

“The way that Mohegan Digital was set up is really to build a digital brand that is complementary to the retail brand in each of our markets. So here in

Connecticut it’s Mohegan Sun Casino, up in Ontario, it's PlayFallsview,” ex plained Moheg an Gaming and Entertainment President of Digital Gaming Rich Roberts. “[Mohegan Digital] was to be complementary to the business, complementary to the brand, complementary to the team.

One as a way to monetize our players when they're not at the casino, but also as a way for us to acquire new players.”

Taylor echoed Roberts’ excitement about not just the launch of online gambling but how the two groups can work together to better one another.

“This is the next iteration of gaming,” Taylor explained. “And we're certainly pleased as a land-based operator just to be part of this and this gives us an opportunity to keep connected with our customers.”

That level of interaction with the customers is also, in some ways, incredibly useful for market research.

Certainly, it makes it clear what is working on mobile gambling apps.

It can also inform brick-and-mortar (locations) about what should be on the gaming floor.

“Ideally, we'd like to get in a position where we know exactly what our customers are doing while they're here at Fallsview Casino, Niagara Casino and what they're doing from a digital perspective and to be able to trend that consolidated play. What games are they playing online? Do we have those games here? What are the setups that we need to do so that if we want to translate that customer from a digital standpoint into the bricks and mortar, we've got similar games that we know those customers want to play and vice versa,” Taylor explained.

Certainly, sports betting is part of

the plans as well, but Roberts admits that Mohegan Sun and Fallsview are committed to putting casino first as an offering.

“Our focus is all casino games. We know what the profitability is on casino games versus sportsbook,” he admitted.

“And so, the sportsbook is important to our business, but the casino games are the lifeblood of our business. So getting people to play on their phones on property is not really a priority for us. Our priority is to get those who are playing on their mobile devices onto property.”

As Roberts noted, the plans for PlayFallsview and how the digital and the retail interact is not to get people on property just to play on their phones.

It is about using the phone to persuade users to come to the casino.

Citing numbers from the results so far at Mohegan Sun Casino Resort in Connecticut, Roberts noted that in excess of 30% of customers who signed up for the mobile app were not Momentum cardholders. What is so exciting about the Mohegan Sunbranded online casino is that these customers are both signing up for the app despite not being familiar with the property. More importantly, though, these users signed up and then eventually came to casino to experience the brand in a land-based manner.

The brand and experience Fallsview and its idyllic location on Niagara Falls offers is how Mohegan Digital can craft a brand that appeals to Ontario. Leaning into the unique experience the property offers, one def ined by service and entertainment, will hopefully give them a leg up over other online gaming operators whose relationship with users stops once their phone is out of their hands.

Canadian Gaming Business | 9

A STEP-BY-STEP PROGRAM TO SYSTEMATICALLY IMPROVE YOUR IT DEPARTMENT

through unique IT research, best practices & advisory A self-sufficient IT team that improves & optimizes your core IT processes

A data-driven IT strategy that impresses your CEO & executive peers

An IT training & coaching program that develops A-players & your IT leadership team

Technology projects that get done on time & on budget

IT Vendor Contract Pricing Is Complex & Wildly Inconsistent Utilize Info-Tech benchmarking data and our extensive contract negotiation experience to reduce risks and save significantly on every IT vendor negotiation.

Contact the GHRC to get started today

Price Benchmarking & Negotiation

Achieve an objective assessment of vendor pricing and leverage exclusive negotiation intelligence to secure a market-competitive price on IT vendor contracts.

Erin Font

Managing Director, GHRC 1-548-888-1379 efont@infotech.com

Contract Review

Partner with an Info-Tech expert and leverage proven processes to improve your vendor contracts with an in-depth contract review process.

Larry Fretz

Sr. Managing Partner, GHRC 1-702-574-4575 lfretz@infotech.com

info

SBC PREPARES FOR TORONTO DEBUT AT CANADIAN GAMING SUMMIT 2023

The 2023 edition of the Canadian Gaming Summit (CGS) will witness a significant revamp, as international gambling industry events and media specialist SBC takes charge of the long-established conference and trade show for the first time.

BY CRISTIAN ROBALINO

The change follows SBC’s recentlyannounced acquisition of the show from its previous joint owners, the Canadian Gaming Association (CGA) and MediaEdge Communications.

It is a deal that leaves the CGS in safe hands, as the new ow ner boasts extensive experience and an impressive portfolio of industry events, which includes SBC Summit North A merica, SBC Summit Barcelona, CasinoBeats Summit and SBC Summit Latinoamérica.

Anyone who has previously participated in an SBC trade show will know that they are very different from standard events, thanks to their blend of high-level knowledge sharing, outstanding business opportunities, and fun.

So what can delegates attending CGS

2023 at the Metro Toronto Convention Centre on June 13-15 expect?

Some aspects will be familiar to previous attendees. The CGA will continue its involvement as a strategic partner, providing guidance to ensure the event benefits the entire Canadian industry, from the growing online sports betting and igaming verticals to the established land-based casino, lottery and charitable gaming sectors.

What SBC will bring is its expertise in developing agendas and curating high-quality speaker line-ups, with the benefit of a contact book that features the world’s leading betting and gaming industr y executives and a host of renowned specialists.

Delegates can look for ward to a conference program that covers key issues

around regulatory shifts in Canada, the future direction of the industry, best practice for responsible gambling, the latest technology, and the most effective marketing strategies for operators.

There will also be an exhibition f loor comprised of leading platform, games, data, technology, and specialist services suppliers showcasing their latest offerings, with attendees having plenty of opportunities for face-to-face interaction with senior decision makers from Canada and beyond.

A nd f inally, that all-impor t ant element - fun. SBC is famed for staging imaginative net work ing events in spectacular venues, which all show delegates are invited to. Keep your eyes open for details of what SBC has in store for its Toronto debut!

Canadian Gaming Business | 11

c a t a g o ry s e c t io n

How a coalition is tackling illegal operators

BY CHARLIE HORNER

Steve Lautischer, EVP Business Development at Alberta Gaming and Liquor Corporation, speaks to CGB about the Lotteries Coalition's battle to eliminate illegal online gambling and why the body is seeking federal intervention on the issue.

12 | Fall 2022

inte r v i ew

“One of the key derivatives of that for the rest of Canada was the onslaught of advertising across the entire nation”

In early Aug ust, a coalition of provincial lottery corps announced they would band together to overcome the issue of illegal offshore operators advertising to Canadian gamblers.

British Columbia Lottery Corporation, Alberta Gaming and Liquor Commission, the Manitoba Liquor & Lotteries Corporation, Loto-Québec and Atlantic Lottery have all come together to take action against those operating in their respective jurisdictions illegally.

Lautischer explained that the coalition united on the back of two key factors: the legalization of single event wagers in 2021 and the opening of Ontario’s commercial igaming market.

These two events, he explained, have generated an 'onslaught' of advertising in Canada that risks causing harm to players nationwide.

Lautischer remarked: “One of the key derivatives of that for the rest of Canada was the onslaught of advertising across the entire nation. In Canada, the Criminal Code is explicit as to who has the lawful right to take bets in the country.

“Fundamentally, the rest of Canada's provincial lottery corporations came together because we have a common concern about the proliferation of these advertisements and the taking of illegal bets across the country.”

Illegal gambling, AGLC’s development lead outlined, poses a double-edged sword threat to harm Canadians. He noted that the black market can not only damage players who have little-tono security protection but also removes funds from the provincial funds that legal gaming helps to support.

“Key deliverables of the provincial lottery organizations across Canada

is that all we'll call the proceeds from gambling in our provinces are returned to the people of the province through different programs and ser vices,” Lautischer added. “ We are ver y concerned for our players as well because the illegal market or the unregulated market that is not been designated to sell into many of our provinces don't have the same safeguards or duty of care for the people that participate in their sites that that provincial organizations absolutely hold ourselves to a very high standard on.”

Whilst no specific event or threat directly forced the Lotteries Coalition to mobilize its proverbial troops, the beginning of the NFL season and other North American sports can be a catalyst for large swathes of advertising from black market incumbents.

Yet, the coalition has a trick up its sleeve, with each lottery corporation launching indiv idual adver tising campaigns to counter the marketing from illegal operators to make players aware of the dangers of illegal operators and promote their own regulated platforms. AGLC parodied three classic horror films in its television campaign.

Lautischer explained: “As a coalition, we plan to continue to do similar types of activities, but each of the individual provinces w ill also do their ow n regional tactics to make people aware.

“We (AGLC) launched a series of ads which really are bringing Albertans to the awareness of being careful where you're sharing your information, and who you who you're participating with.”

The coalition is seeking federal intervention to enforce the law on those who are infringing on the provincial

lotteries, which often maintain a monopoly position in their respective jurisdictions.

It is essential, Lautischer told CGB, that federal intervention must review how the illegal operators have been allowed to gain so much traction and take action to counter this.

“When it comes to advertising, we're looking to certain federal organizations that will call it puts standards and parameters around what is fair and legitimate advertising to be done,” he noted.

“A nd we're look ing for them to take a harder look at how the illegal operators have been able to proliferate the airwaves.”

Asked why Canada has been the target of the proliferation of illegal online operators, AGLC’s EVP detailed that Canadians are major sports fans and that since the opening of Ontario, outsiders have witnessed a successful gambling industry.

In summarizing, he said that “when you see success you see opportunity.

Everybody's going to try and take their piece of that piece of that pie”.

Mov ing for ward, the L ot ter ies Coalition is aiming to present an unrelenting, persistent campaign as it continues to keep Canadian players safe.

Citing a ‘long haul’ approach to defeating the black market, Lautischer concluded: “You'll hear a continual message from the coalition itself and from the individual provincial entities as well. I think it's a marathon, not a sprint.

I think we were in it for the long haul.

And we truly are in it for the long haul.”

“Maybe I shouldn't be that unrealistic to say they'll just vaporize but of course, the goal would be to make it unpalatable for them to reside in the country.”

Canadian Gaming Business | 13

th

A 75ERS

IV N N A

RY

BLACKJACK

DURABLE

H O S P I TA L I T Y

POKER RELIABLE

SINCE 1946

S L OT S BACARRAT V LT ’ S

ROULETTE

MANUFACTURERS OF PREMIUM QUALITY GAMING SEATING:

Stay at the top of your game Developments in the regulation of the gaming industry in Canada have created incredible opportunities. Osler’s Gaming Practice Group has the expertise to help navigate the complex and evolving legal landscape. Our reputation as a trusted advisor in this sector has been built on specialized client service to leading financial institutions, gaming operators and provincial gaming authorities.

For more information, contact: Eric Levy, Chair of the Gaming Group at elevy@osler.com

Osler, Hoskin & Harcourt llp Toronto Montréal Calgary Ottawa Vancouver New York osler.com/gaming

2023 SAVE THE DATE – THE KEY CONFERENCES FOR YOUR DIARY

21-23 MARCH

MAY 9-11

INTERCONTINENTAL MALTA

MEADOWLANDS EXPOSITION CENTER, NEW JERSEY

JUNE 13-15

19-21 SEPTEMBER

OCT 31 - NOV 2

METRO CONVENTION CENTER, TORONTO

FIRA DE BARCELONA, MONTJUÏC

SEMINOLE HARD ROCK HOTEL & CASINO, HOLLYWOOD, FLORIDA

FOR MORE INFORMATION PLEASE VISIT WWW.SBCEVENTS.COM

SIGA DEAL INDICATIVE OF CANADA'S GROWTH

Cathryn Lai, OpenBet’s Chief Commercial Officer, discusses the challenges and opportunities she expects to encounter as the sportsbook technology and content supplier grows its presence in the Canadian market.

BY CHARLIE HORNER

As the British Columbia Lottery Cor poration (BCLC) ex pands its foot pr int in Ca n ada t h roug h a n agreement with the Saskatchewan Indian Gaming Authorit y (SIGA), OpenBet is cultivating a long-term relationship with the lottery as its sports betting provider.

Lai noted since she took her new role, the firm has gone ‘to the next level to be at the frontline of driving online and land16 | Fall 2022

based legalized gambling in Canada’.

She explained: “OpenBet is excited to seal another tribe partnership with SIGA, allowing us to be a part of bringing online gambling to the people of Saskatchewan, and we feel we are well-placed to be the region’s sports betting partner of choice.

“There is set to be a lot of innovation in the sports betting space in Canada over the next few years and OpenBet

will be at the forefront of that. It’s exciting to be part of an organization with such continued promise.”

OpenBet has enjoyed a long and productive relationship with BCLC which has helped to evolve governmentregulated gambling in North America.

This agreement, Lai explained, will only serve to enhance the relationship between the two parties as they enter another province.

f e a tu re “Partnering with SIGA," she added, "is a testament to the organization’s commitment to being the top performer in a lot of categories in North American gambling. OpenBet has been BCLC’s sports betting platform provider for over a decade, and this move strengthens our relationship further.”

One challenge of this partnership is that consumers in Saskatchewan are not used to sports betting. With sports betting an immature market in North America, and Canada especially, OpenBet intends to show players how sports betting can add to the entertainment value of sports.

“OpenBet’s experience will help newcomers like Saskatchewan to succeed – we were also a partner with BCLC in bringing online gambling to the people of Manitoba, so are well-placed to deliver what is needed,” she noted.

“By moving quickly to understand the nuances of different territories, we can ensure that we’re serving operators, lotteries, and tribes the way they want to be served.

“Th is mea ns ma k ing sure our

"OPENBET’S EXPERIENCE WILL HELP NEWCOMERS LIKE SASKATCHEWAN TO SUCCEED"

technology, content, and services are delivered in a personalized way that meets their exact needs. This is especially important when you consider the top sports for bettors; differences in sport and live betting, and the way that plays out, are extremely important for us.”

Lai praised SIGA’s ability to foster a gaming industry in Saskatchewan which has provided invaluable opportunities for local communities and detailed that partnering with BCLC is another move that will have ‘a lasting impact’ in the province with the resulting economic opportunities.

Praising the work that the association has done, Lai remarked: “SIGA has been a positive driving force for Saskatchewan since 1995, established as a non-profit entity to create opportunities and give back to local communities.

“The organization is dedicated to investing in economic opportunities that have a lasting impact, and this deal with BCLC represents just that. We’re proud to have formed another tribal partnership alongside SIGA.” Moving for ward, OpenBet also revealed several plans to expand its Canadian operations further, with the SIGA deal displaying ‘evidence of our continued efforts’ in the country.

Yet Lai is seeking further Canadian growth, noting that the firm is ‘ready to serve and help operators’ across the country.

She concluded: “OpenBet has a very strong historic presence in Canada, primarily with BCLC and also LotoQuébec, and can continue to replicate the successes we have seen over the years. We were the f irst regulated sportsbook platform provider to offer singles betting in Canada, and the recent SIGA deal is evidence of our continued efforts.

“We also work with the Atlantic Lottery Corporation and we need to explore more opportunities to work with the other jurisdictions as well.”

Canadian Gaming Business | 17

c a t a g o ry s e c t io n

theScore Bet:

Helping customers ‘Get Into Bet Mode’

BY CHARLIE HORNER

Aubrey Levy, Senior Vice President of Content and Marketing at theScore, lifts the curtain on the company’s ‘Get Into Bet Mode’ campaign which boasts theScore’s fully integrated media and betting app in a relaunch this fall.

18 | Fall 2022

inte r v i ew

“It's an all-encompassing strategic focus for us as a company, even more deeply into our product and culture”

Fall presents an incredibly exciting period in the year for all sports fans. The NFL and college football seasons are right around the corner and, this year, the FIFA World Cup will cap off a hectic period of sporting action towards the end of 2022.

With such a packed calendar of sports, marketing activities are essential for betting operators to activate customers in a busy market. In Ontario especially, which is heading into its first fall since regulation, operators are gearing up to activate new customers.

But for Levy, bringing back the ‘Get Into Bet Mode’ campaign, which enjoyed success earlier this year, is an ‘all-encompassing strategic focus’ that helps bettors understand the user experience focus on theScore’s app.

“We aim to simplify your life as a sports bettor and provide you everything you need in one ecosystem so that we can reduce the friction and let you get back to enjoying the game, which is what betting is about. It's about the enjoyment of the sport, the team match that you love,” he explained.

“It's an all-encompassing strategic focus for us as a company, it extends across our marketing activations, but even more deeply into our product and culture.

How do we empower your experience so that it is the best experience possible?”

‘Get Into Bet Mode’ comes with ad spots that feature celebrities such as Patrick Adams and Jon Lovitz, who bring a light-hearted, humorous tone whilst highlighting the main features of theScore app and also ‘talk to the power of media and betting combined.’

Levy noted: “It's about finding the right talent for the right message, rather than just trying to find the biggest name you can find.

“We actually show one of the primary use cases (which) is that you are living on theScore with our media, you're following the game, you're getting data, you're reading editorial, and all of that is informing

your betting decisions and you can, from within the media app, build your bet slip. All the way up to the point of placing the bet and in that last mile, we take you over to theScore Bet, you place your bet then come back to theScore.”

And humanizing theScore’s Bet Mode feature was a key priority of the campaign for Levy, who believes that fans consume sports in a ‘myriad of ways’.

Another key marketing activation for theScore this fall is its 10x Tailgate Tour, which is ‘an amazing in-person activation’ to get the brand out on the ground with customers in their local area.

So just how important is getting out on the ground and meeting potential customers to theScore?

“We have a tremendous brand advantage in Canada with the score. But that's not something we take for granted, Levy detailed. “There's a lot of our competitors that have a lot of unique advantages to each of them. Some have big casino databases, other fantasy databases, and some who've been in the grey market for a very long time and have actually been able to facilitate play when we couldn't.

“So our brand means something to people in Canada. And so that gives us an opportunity, but that also gives us the challenge to continuously reinforce that brand and continuously win your loyalty.”

Levy was eager to stress theScore’s ‘immensely powerful’ brand strength in Canada, which led to the decision to focus on the Canadian market, whilst Barstool Sportsbook would be PENN Entertainment's US wing.

Concluding his thoughts on the Tailgate Tour and theScore’s brand strength, Levy remarked: “That provides a really big opportunity but also a huge bar set for us to achieve because we have to validate and we have to fulfill against that brand. People have an expectation of who we are and what we're going to do for them. And it's very, very high. So we have to keep matching it.”

Canadian Gaming Business | 19

i nt e rv iew

SANDY AUSTIN:

Spearheading BCLC’s 5-star pursuit of D&I excellence

The Chief People Officer shares the blueprint behind the success of British Columbia Lottery Corporation (BCLC) and its diversity and inclusion efforts, following its 2022 recognition as a five-star employer in the field.

BY NICK WARE

Diversity and inclusion may be just buzzwords to some organizations, but BCLC is living proof that this way of thinking does not apply to all. The lottery corporation has been servicing the gaming industry for over three decades.

And a commitment to its people has been at the forefront of its success.

Sandy Austin hasn’t been at BCLC since its inception in 1985, but her 22 years (and counting) of service is no mean feat. She has witnessed significant changes in the industry and many comings and goings at BCLC, but one thing has remained constant - the importance of ensuring people feel valued.

20 | Fall 2022

“Diversity, Inclusion and Belonging (DI&B) is a core focus for BCLC,” Austin explained to Canadian Gaming Business.

“As an employer, it’s our goal to create an environment free of discrimination and open to diverse perspectives, where all employees feel they are seen, heard, and that they belong.

“As a business, we believe we must create experiences that are sensitive and responsive to the communities and players we serve. And as a Crown cor poration, we must ref lect the commitments our province has made and contribute to building a society where all have equal opportunities and

are treated fairly.”

Last year, BCLC launched a new DI&B policy to support its core values of respect, integrity and community, three different components which all have an important and unique meaning.

“Respect means we treat all people w it h d i g n it y, a nd v a lue d i ver se perspectives. Integrity means that the games we offer and the ways we conduct business are fair, honest, transparent and trustworthy. Community means we create a positive impact for people and the planet.”

BCLC’s DI&B journey has been u nder pi n ned by t he work of it s

inte r v i ew employees, ma ny of whom have volunteered as part of the program.

“Engaging with our employees to listen to their diverse perspectives is an essential component of our DI&B Policy and Strategic Action Plan,” Austin explained.

“We’re currently one of the few publicsector organizations in British Columbia with such a plan, demonstrating our efforts to foster inclusion and empowerment in partnership with our people.

In May 2021, BCLC also launched a first-of-its-kind self-identification portlet for employees. “ We r e c ei ve d a n enc ou r a g i n g response rate and are using the key learnings to inform our DI&B strategy and understand systemic and process barriers,” noted Austin. “ Un d e r s t a n d i n g t h e v a lu e o f list en i n g a nd lea r n i n g f rom t he diverse perspective of our employees, we continue to host workshops and conferences focused on diversit y,

"WE BELIEVE WE MUST CREATE EXPERIENCES THAT ARE SENSITIVE AND RESPONSIVE TO THE COMMUNITIES AND PLAYERS WE SERVE"

identity, culture and inclusion.”

BCL C ’s work in the f ield wa s recognized earlier this year when it was listed as a 5-star Diversity & Inclusion Employer by HR Director Canada.

“It’s certainly a nice recognition of BCLC’s efforts as a social-purpose company working to generate ‘winwins’ for the greater good, and towards fostering a more inclusive culture.

“It also speaks to the direct results of DI&B being embedded within our various employee-resource groups and across our organization as a whole. The insights from the many different people within these groups have continued to inform our

actions and enabled us to enhance how we action various DI&B initiatives.”

Notably, though, BCLC was the only Canadian company, with employees ranging bet ween 500 -2,499, to be selected in the 5-star category.

So what advice does Austin have for companies aiming to emulate BCLC? “Listen to and consider the perspectives of your people, whether it’s building inclusive policies, processes and structures to foster that inclusive culture, or creating or changing your work environment to be open to diverse perspectives from all employees.”

The journey has been an eventful one for BCLC and Austin, but there are still plenty of ideas floating around and numerous events on the horizon.

“Our DI&B journey will continue to evolve with our employees and we’re very excited to continue engaging with them to consider how we can further our work to promote an even more inclusive workplace.

Canadian Gaming Business | 21

WELCOME TO THE PARTY? ASSESSING THE CHALLENGES OTHER PROVINCES FACE WHEN FOLLOWING ONTARIO.

VIXIO GamblingCompliance reporter Matt Carey examines the state of play across Canada and explores the challenges and opportunities for other provinces that may follow in Ontario’s footsteps.

22 | Fall 2022

f e a tu re

“Following Ontario’s lead into a more open market is a more complicated proposition than it may seem”

BY MATT CAREY

T h e e x c i t e m e nt s u r r o u n d i n g Ontario’s launch of a competitive, regulated sports betting and online casino market has naturally led to many observers, both in Canada as well as internationally, asking if, and when, other provinces will follow suit.

Those observers have reason to be excited about the potential of a more open Canadian online gaming market.

According to V I X IO Gambling Compliance projections, Canada’s online gaming market could reach $5.8bn by 2026 with only some liberalization for online sports betting in Alberta, British Columbia, Manitoba, and Saskatchewan.

However, Ontario’s open market alone would be responsible for more than $3.2bn of that, despite only accounting for just over 38% of the country’s population.

Following Ontario’s lead into a more open market is a more complicated proposition than it may seem from the outside, particularly for international operators.

The expansion of liberalized online gaming through Canada faces a myriad

of challenges, including political roadblocks and addressing the effect on the entrenched gaming structure that exists in many provinces today.

The impact of single-event sports wagering remains a relatively new concept in Canada’s regulated gaming space.

Provincial lottery corporations have only just begun to see the effect of single event wagering on their own products, particularly in competition with grey market operators that remain in operation.

Grey market operators loom large over the conversation regarding almost every province, and Ontario’s decision to allow those operators to transition into the regulated market without ever halting their operations may not be a one-size-fits all solution that other provinces can easily replicate.

O t her pro v i nc e s , l i k e Br it i sh Columbia, have taken harder stances against some operators regarding alleged illegal activities, and many operators entering the Ontario market have complained that the decision to permit the grey market operators to transition has made it difficult to compete with the entrenched operators in the early stages of the market.

Moreover, lotter y cor porations in other provinces provide different structures and different levels of success that make it more diff icult to implement a private operatorbased system that either challenges or supplants existing products. In Quebec, the lottery corporation directly operates all forms of gaming, including land-

based casinos, and British Columbia’s lottery corporation includes the most successful government-run online casino product in the country.

And while the four Atlantic Canadian provinces are banded together through the Atlantic Lottery Corporation, each province remains entitled to make its own decision on reform, adding an additional degree of complexity to any decision.

Alberta will likely be the next to pursue a competitive model of some kind, already holding a request-for-proposals to select two commercial operators to compete with its PlayAlberta product.

The remaining provinces will also undoubtedly be looking at the early returns from Ontario’s new model for themselves, including revenues, how the government-run PlayOLG product performs as a challenger to the private operators, and the effects of regulators ultimately dropping the proverbial gate on grey market operators who have yet to transition into the regulated space.

Ultimately, those returns will have to show a result worth upending the existing structure. Even in Ontario, with a conservative government that favors privatization as general policy, it still took three years for Ontario’s eventual model to go from an idea to a launch.

The end result is that while change will likely come to Canada’s other provinces over the next five to 10 years, it likely will not be overnight, and when it does come, the reforms may not be as sweeping and as hospitable to potential new market entrants as Ontario’s new model.

Canadian Gaming Business | 23

ONTARIO:

Attracting and retaining users in a highly competitive gaming market Customer acquisition, retention strategies and player safety were all in the spotlight during the ‘Online in Ontario - igaming in North America’s fifth largest market’ panel at SBC Summit North America.

BY CONOR PORTER

Since opening its doors to igaming in April, the Ontario market has been watched very closely by online gaming industry executives across the world because of its potential to be one of the biggest markets in North America.

Scott Vanderwel, CEO of PointsBet Canada, took part in the discussion and was asked by the panel’s moderator Paul Burns, President & CEO of the Canadian Gaming Association, what he has seen in the early days of the market in terms of onboarding customers.

Vanderwel said: “The competition for customer acquisition is pretty high. One of the dynamics of the market that we were talking about a little bit before coming here is that the regulatory framework involves iGO, AGCO and the financial regulator, and that produces a whole bunch of gates and hurdles in the acquisition process that makes the initial onboarding of customers a little bit more complicated.

“I think we're going to see people fighting hard to hold on to the customers that they're able to acquire because the effort and energy required to get someone into your environment has been relatively high when compared to the US, for example, or other jurisdictions for that matter.”

24 | Fall 2022

Joining Vanderwel on the panel was Richard Roberts, President of Digital Gaming at Mohegan Gaming & Entertainment; Oren Cohen Shwartz, CEO of Delasport; Will Whitehead, Commercial Director of mkodo; and Kent Young, CEO of Spin Games.

Whitehead backed the points made by Vanderwel, adding that retention will be vital for Ontario operators as well, as it's something that mkodo had noticed while working with OLG over the past few years before the igaming market was regulated.

He said: “Acquisition is key, but I think retention will be as well - and that's what the lottery has focused on. You have to have a really good CRM system. It's not just what you need to acquire, but you don't give up then. You have to focus on retention as well. It's crazy competitive, it's going to get even more competitive.”

A strong brand was emphasized by Shwartz as an important factor for customer acquisition and retention purposes.

He also underlined user experience as being a crucial component, stating: “Everybody has the same access to content, everybody has the same access to slots, the same features in sports. So it's about the service from A to Z, from

SB C Summit NorthAmer i ca "THE EFFORT AND ENERGY REQUIRED TO GET SOMEONE INTO YOUR ENVIRONMENT HAS BEEN RELATIVELY HIGH RELATIVE TO THE US"

how easy it is to register, to deposit, to get the withdrawal, what do I get as extra? What are the levels of personalization that exist? It’s also about the service that they get from customer support, etc.

“I think what will break it or make it when it comes to retaining the players in the market will be the level of service that the player will receive. This is where they decide whether to stick and continue with the specific brand.”

From an operator perspective, Vanderwel stressed that if an operator is not pushing responsible play, it's not facilitating sustainable play, commenting: “I think you're going to find that it is an absolute imperative for any operator that has a long-term vision of participating in Canada to put responsible play as one of its central pillars.”

Shwartz also emphasized that education is vital to support all the regulatory requirements in Ontario. “The market was open before, players were playing in a certain way,” he said.

“Now there are restrictions. Whether it's cooldowns, spins, the time between spins in the individual slots. Some of these players might go to the operators that are still operating in the grey market or even use a VPN to play with the offshore operators.

“This is a matter of education of the market because the players didn't change in one day. There's a new law. Everybody reset, so it's a matter of time. It's a mutual walk that both the regulator and the operators need to do in the market.”

Seamlessly onboard players and comply with regulation Verify Identity, Age and Documents Monitor Transactions and Behaviour Perform KYC and AML checks Case and Referral Management

Protect

|

Comply

|

Expand

Providing a safe environment for players to enjoy both online and land based gambling.

LexisNexis and the Knowledge Burst logo are registered trademarks of RELX Inc. RiskNarrative is a trademark ofLexisNexis Risk Solutions UK Limited.

Copyright © 2022 LexisNexis Risk Solutions

Scan Here

Canadian Gaming Business | 25

THE ALTERNATIVE

PAYMENT METHODS THAT ARE DRIVING PLAYER ENGAGEMENT IN CANADA

As online gambling grows across Canada, not just in Ontario, advancing payment methods will become increasingly essential to success when it comes to retaining customers, according to a panel of experts.

BY VIKTOR KAYED With the gaming industry constantly innovating to ensure an efficient and smooth user experience, payments are also being looked at with great care.

At this year's Canadian Gaming Summit, Chuck Nervick, Managing Director of MediaEdge, was joined

by Ont ar io L ot ter y and Gaming Corporation's icasino and ilottery Senior Director, Andrew Darley, VP of Business Development at Paysafe, Greg Kirstein, and SVP of theScore Bet, Noah Levy on a panel titled 'The New Canadian Playing Field: Payments, Product & Maximizing Customer Conversions'.

26 | Fall 2022

Directing a question towards Darley a nd t he OL G plat for m t h at wa s launched back in 2 015, Ner v ick enquired about the role that payments have had for OLG’s broader product offering since the company’s inception, as well as the importance of a smooth payments process for both customer retention and acquisition.

Darley responded: “Payments are very important. It’s kind of a core part of the funnel. When you bring in a new customer, making sure that the payment journey is as seamless as possible is obviously super, super important.

“From a deposit standpoint, the key thing is giving the proper opportunities for folks to deposit, and cater to the different customers. Our high-value customers favour debit, while our medium and low-value customers will favour credit. We have to make sure we adapt to the different customer segments.”

Turning the coin on its other side, Darley asserted that it is also essential to think about the methods that a player may use to withdraw funds. “We talked a lot about deposits,” he said. “But it has been just as important for us to look at what we can do from a withdrawal standpoint as well.”

Ca na dia n Ga ming Sum m i t Moreover, a smooth withdrawal process can be a useful tool from a responsible gambling perspective, not just helpful with regard to player retention.

“From a responsible g a mbling standpoint, mak ing sure that the withdrawal happens quickly can prevent problem gambling behaviour. A customer who is sitting on that money and it can’t be withdrawn quickly may be encouraged to go back and keep playing.”

Moving the discussion for ward, Nervick asked about the differences bet ween payments in the US and Canadian markets, to which Lev y answered: “Cards are king in both jurisdictions. But there are some really interesting nuances.

“In 2018 and 2019, in the US, we were seeing massively high decline rates. And from a product perspective, that sucks, we have got to somehow manage to get somebody through a really terrible KYC process.”

It is essential to explore what is

"MAKING SURE THAT THE JOURNEY IS AS SEAMLESS AS POSSIBLE IS OBVIOUSLY SUPER, SUPER IMPORTANT"

affecting those rates in the US and how to improve this outlook in Canada moving forward.

Levy continued: “What we were able to do from a product perspective is built iteratively. What I mean by that is, find user f lows and user journeys to help optimize the way that navigates the user through the cashier workflow to make sure they’re able to successfully deposit and eventually withdraw as well.”

Specifically referring to the Canadian market, Levy added: “When Canada launched several years later, we were ver y for t unate from a n operator perspective that some of the larger financial institutions here have moved

subst a nt i a l ly qu ick er t h a n t hei r US counterparts.”

Jumping to possible adv ice for Ontario operators looking to provide an optimal payments experience, Paysafe’s Kirstein detailed: “The first thing a consumer is always going to try is a credit or a debit card – that’s just the way they’re used to transacting in any other form of ecommerce.

“However, you need to have a wide range of payment methods – starting with credit and debit, but also moving to others. We see the US localizing alternative payment methods. They aren’t foreign to Canadian consumers, which they use to transact with in their everyday life – things like indirect transfer, like digital wallets.

“We operate digital wallets globally around the world. We really see a lot of comforts as it relates to using that type of product. Some customers just want to have the flexibility to move money in and out of a wallet.”

SBCAdvisory

sbcadvisory.com

Partners

The pioneering consulting and transaction advisory service for sports, betting & gaming organisations Boasting an unrivalled network of contacts founded on the deep industry roots of its highly experienced partners and the reach of its global conferences and business media portfolio.

Canadian Gaming Business | 27

c a t a g o ry s e c t io n

DAVE PHILLIPS BUILDING THE REGULATORY FOUNDATIONS FOR ONTARIO

BY CHARLIE HORNER

As operators, suppliers and affiliates alike enter the Ontario online sports betting and igaming market, Dave Phillips, COO at AGCO, took time at SBC Summit North America to reflect on the regulatory framework that kickstarted Canada’s journey towards igaming regulation.

The Ontario igaming market is unique. This distinctive nature comes from its regulatory setup; an operator must enter into a commercial agreement with iGaming Ontario as well as receive licensing from AGCO before it can commence operations.

Such a dua l f ra mework ma kes Ontario an unknown territor y for many US sportsbooks, where regulators will award licenses based upon the individual state legislation.

The fact that incumbents are not bound by legislation, but instead by standards set and enforced by the AGCO, makes the province stick out like a sore thumb in the North American gaming industry.

28 | Fall 2022

Phillips spelled out the odd nature of Ontario’s regulations, brought on by its ‘entrenched, mature’ grey market.

"THERE IS A BIT OF A RISING TIDE TAKING PLACE"

He ex pla ined: “ We desig ned a regulator y program that has many u n ique feat u res t h at a re g ea re d toward making Ontario an attractive marketplace to operators that are looking to come in.

“But it includes making sure that our licensing model allows for speed to market for those low-risk operators and suppliers that have a lot of experience.

“It mea ns hav ing reg ulator y standards where, as opposed to most US jurisdictions that have a fairly limited menu of sports betting markets that can be offered in Ontario, you've got betting criteria that allows for a much broader range of markets to be offered.

There are multiple other elements of the design that we included, that were really geared to making sure that Ontario was seen as an attractive jurisdiction for those that want to come in.”

Ensuring that free and fair market competition is vital to the success of a

SB C Summit NorthAmer i ca jurisdiction’s igaming and sports betting market. The high-profile, global operators that favorable regulations can attract are desirable for regulators that want to see a thriving market that prioritizes, bluntly, revenues that can subsequently be turned into provincial taxes.

Yet, Phillips was eager to assert that AGCO had put important regulatory tools in place to disassociate the market from any previous misconceptions a ssociated w ith opening la rg e commercial igaming markets.

Once again, it came back to the term ‘unique’ to describe another key regulatory tool in AGCO’s armoury.

The AGCO has a fully integrated detachment of the Ontario Provincial Police that works alongside the civilian regulatory apparatus.

In June, the detachment aided an investigation that discovered over $3m from the illegal sale of cannabis was laundered through casinos in the GTA and Niagara regions.

"WE'VE GOT THE ABILITY TO WORK IN AN INTEGRATED FASHION THAT ALLOWS US TO HAVE A BEST-IN-CLASS REGULATORY MODEL"

Explaining the impact of having an OPP detachment in its ranks, Phillips remarked: “We also strove to ensure that we have top-notch regulator y st a nda rds in place - a ver y well resourced, licensing and compliance function within the organization.

“When it comes to igaming in areas like match-fixing, money laundering, game integrity, fraud issues, we've got the ability to work in an integrated fashion that allows us to have what we think is a best-in-class regulatory model.”

The market’s launch was over six months ago now, leaving many focused on what the future of the Ontario regulatory framework looks like following this period of excitement and reflection.

The AGCO will begin to come down harder on the grey market, Phillips noted, setting cut-off dates for those left in the unregulated wilderness ‘as quickly as possible’.

Phillips cited a ‘shift’ in the way that AGCO interacts with those that rema in un reg ulated, ex pla ining: “We're going to be drawing the line in the sand. We're going to be setting a cut-off date and we're going to be having some of those conversations to make sure that we're channeling as quickly as we possibly can.”

“We're gonna be watching that very closely to see what potential impact it's going to have on the regulatory model.”

Canadian Gaming Business | 29

c a t a g o ry s e c t io n

RECEPTIONAL: HOW TO WIN IN SPORTS BETTING IN ONTARIO

Receptional Head of Paid Media, Callum Riches, explains the firm’s research ebook on Paid Media in Ontario and how operators can ‘win’ in sports betting despite strict advertising guidelines.

BY CALLUM RICHES

Earlier this year, Receptional’s digital experts analyzed how the first tranche of regulated brands have adapted to the new regulatory framework, in particular their strategic approach to digital marketing that needs to align with stringent guidelines.

Namely, this covers the area whereby advertisers cannot promote offers, rewards, sign-up bonuses and free deposits unless they are placed on an operator’s site, or via direct channels, after obtaining a player’s consent to receive promotional material.

While a number of brands have been fined for stepping out of line, there is some ambiguity surrounding how this could affect paid media campaigns, as the regulator outlines a possible loophole that paid advertisers could manipulate. Following a player’s initial sign-up to an online betting site, for example, paid media marketers could, in theory, target the consumer with remarketing campaigns across paid media channels with bonus offers.

SMARTER DIGITAL THINKING: RECEPTIONAL RESEARCH PART 1 We focused on a range of sports-based betting terms for users located in Ontario. This research was carried out for two reasons; to understand the volume and opportunity for paid campaigns across several different sports betting markets in the province and to monitor brand presence in the market and analyze campaign strategies.

While the Ontario betting market remains smaller than other established markets there is still ample opportunity. Our research in April and May this year showed it has approximately 12% of ‘sports betting’ searches (less than 500k per

30 | Fall 2022

month) compared to the UK (3m+).

This means there remains a sig nif icant opportunity to promote a betting brand in the province through paid media campaigns such as YouTube, Facebook, programmatic and more, with online interest expected to increase as brands expand their presence across platforms – creating more opportunities.

Our initial research shows a healthy volume of search terms across a wide range of betting markets. (see image) Traditional American sports provide higher search volumes but there is an opportunity within other markets such as golf, which has a similar market size to American football or baseball but with Cost per Click (CPCs) 20-30% lower.

This is an area that advertisers can tap into and start testing a longtail keyword strategy. Markets such as esports or horse racing have much lower market size but are very competitive and therefore CPCs are much higher than other sports.

RECEPTIONAL RESEARCH PART 2 We then looked at 12 of the first brands licensed to operate and advertise in the newly-regulated market and analyzed their paid media presence to understand two key questions; are they investing yet and what is their strategy?

Using Semrush & Ahrefs data on the keyword ‘how to win betting on football’ we found that only three of the brands operating in Ontario and only one (FanDuel) was bidding on sports betting-related terms.

When we extended our research to May, we found several other brands such as LeoVegas, Play Alberta and bet365 starting to either expand into

f e a tu re "THIS HIGHLIGHTS HOW IMPORTANT IT IS TO CREATE A CLEAR OPPORTUNITY WHEN LAUNCHING IN A NEWLY EMERGING MARKET"

sports betting-based terms or start their campaigns with a variety of terms, ranging from traditional North American sports to F1. FanDuel had tested the biggest range of keywords and sports included in its strategy.

Similarly, not all licensed brands had started to heavily invest in Facebook.

In April, only three brands had started to place ads in the ecosystem including theScore Bet, Play Alberta and PointsBet Canada with all three Facebook ad types largely having a similar look and feel. Re-running the research in May, FanDuel was the only additional brand to have invested in this channel.

This highlights how important it is to create a clear opportunity when launching in a newly-emerging market. The use of

video content is also low to this point, with standard single-image ads taking the lion’s share of the creative strategy.

Canadian Gaming Business | 31

SEAMLESS ONBOARDING... ... TO HELP CANADIAN GAMBLING OPERATORS GET AHEAD OF THE GAME

Friction-free onboarding is vital to helping online gambling companies retain clients, whilst meeting regulations, says Adam Doyle, Head of Gaming at LexisNexis Risk Solutions.

The online gambling industry in Canada, like most gambling markets, is a highly-competitive environment where smooth and fast customer onboarding is essential to reduce the risk of deterring hard-won clients from signing up.

With the industry still in its infancy at under a year old, much more is expected to come. Regulatory intelligence firm VIXIO GamblingCompliance recently estimated the market will generate gross revenues of C$989m in its first year of opening, growing to C$1.86bn by 2026.

It’s little wonder then that operators are scrambling for a slice of the pie and are willing to spend heavily on marketing and promotion to gain a share - with customer acquisition costs running to as much as $700 per customer.

AVOIDING COSTLY SIGN-UP DROPOUTS

In this environment, attracting

32 | Fall 2022

customers to your website and keeping them there is of paramount importance, and any friction in the onboarding process will lead to dropouts. But speed and ease of onboarding needs, of course, to be weighed against the need for stringent checks.

W hilst there a re some va r y ing degrees of requirements, most require background and anti-money laundering at some point in the customer journey.

These know your customer (K YC) pr o c e du r e s c a n b e o n er ou s fo r operators to implement into their tech stacks - checks including verifying a player’s identity, where they live, how they will pay and where the money is coming from inevitably add friction to the customer journey.

Online gambling sites also need to ascertain whether the player is underage or using multiple accounts. In addition, they need to know whether the player

has prev iously been f lagged as a problem gambler or is on any sanctions list globally.

A ll this takes up valuable time, which impatient players itching to bet on the outcome of the Stanley Cup simply don’t have. If the process is too slow, or inefficient, there is plenty of competition out there which may do it better.

ACCESS TO THIRD-PARTY SERVICES

I t ’s a c o m p l e x p r o c e s s f o r a gambling operator, which may need to t ap into multiple suppliers of verification services to meet regulatory requirements. It is also a significant technological challenge.

In Europe, where online gambling is well-established, regulators have handed out more than $52m in fines so far this year. The UK, which has one of the world’s most developed regulatory

f e a tu re

BY ADAM DOYLE

frameworks, fined one company $8.2m for breaches in money laundering obligations and for failing to ensure players were gambling responsibly.

"MANY OPERATORS ARE THEREFORE LOOKING TOWARDS THE MORE MATURE EUROPEAN MARKET FOR TRUSTED, PROVEN TECHNOLOGY TO DEPLOY"

Many operators are therefore looking towards the more mature European market for trusted, proven technology to deploy. There are a number of crossborder operators in Europe with a presence in many regulatory jurisdictions, and their experience is useful while formulating a strategy to go to market.

SPECIFIC DATA TRUMPS CHEAP DATA

In new markets like Ontario, it’s easy to choose a low-cost solution without understanding the importance of only using trusted technology and regulatorapproved data sources.

On paper, for an operator, a solution that’s significantly cheaper than others, might seem like a win. But with really specific data requirements needed to meet the IGO standards, this could subsequently be putting operators at massive risk of a fine, suspension or even a loss of licence.

Typically, when regulation is put in place, specif ic data requirements are enforced to ensure an operator is validating players using credible data.

Sometimes, this will mean the cost is more, but regulation is regulation, and aligning with the mandated rules helps protect players and ensure our industry is sustainable for years to come.

CONSTANT MONITORING FOR ONGOING COMPLIANCE

C ompl i a nc e do e sn’t end onc e the customer has been successfully onboarded. Some European regulators require operators to monitor players’ behaviour to identify suspicious activity, irregularities, and excessive gambling.

Seamless onboarding and monitoring will play a key role in helping companies keep their clients, stay abreast of their regulatory responsibilities, and provide that data so the operator can present to regulators.

Technology such as the LexisNexis RiskNarrative™ platform is currently delivering customer onboarding and transactional monitoring for a number of large European gaming operators.

FEEL FREE TO GET IN TOUCH TO FIND OUT HOW THE LEXISNEXIS RISKNARRATIVE™ PLATFORM CAN HELP YOU. Canadian Gaming Business | 33

RELAX GAMING: HOW JACKPOTS HAVE EVOLVED TO SUIT THE MODERN PLAYER

BY ERIN GALLAGHER

Daniel Eskola, Head of Research & Development at Relax Gaming, walks through the evolution of jackpot games and how user experiences and preferences can influence the production of new titles.

34 | Fall 2022

inte r v i ew

“Utilizing jackpots in a business’ CRM strategy is very powerful, but this needs to be done well or it will end up costing too much”

HOW HAVE PLAYER PREFERENCES CHANGED IN RECENT YEARS WITH REGARDS TO JACKPOTS?

Looking at the development of new mechanics and innovations compared to standard slots, there’s definitely been less focus on jackpots and new ideas. As a result, players have not had as much on offer when it comes to offering a fresh jackpot experience. From the supply side, we’ve seen a notable shift from infrequently dropping, lifechanging wins, to far more frequent, daily-dropping jackpots. But up until now, not much has changed.

O u r D r e a m D r o p i n no v a t io n fulfilled exactly what the modern player is looking for in a jackpot – combining those smaller, more regular wins with the possibility of being in with a chance of a life-changing Mega win as well.

Given that we’ve merged the two, operators can expect to see a great deal of traffic with the jackpot, particularly when it’s hot. So far, we’ve seen two players hit the Mega Jackpot worth €997,779.17 and then €924,386.51.

Player interest and recognition of the product are set to increase exponentially as a result, and we’re very excited about the months ahead.

ARE JACKPOTS AN EVERGREEN SAFE BET, OR ARE PLAYERS LIKELY TO BECOME UNDERWHELMED IF THE MECHANIC DOESN’T SEE MORE INNOVATION?

The key factor to consider is whether or not players are having the best possible experience for the money they’ve deposited. With this in mind, jackpot games need to offer a high level of entertainment, excitement and a sense of near wins.

Due to the nature of jackpot games with part of the players' bets going into the jackpot pools, the risk is that players may feel the deposited may feel the deposited money does not last long enough, which is reducing the core component of the entertainment factor. If the base game and general mathematics profile aren’t up to scratch, then you’re just not going to be able to reach an optimal level of engagement and retention. Jackpots will always be an essential part of an operator's offering as it carries with it the association of that fantastic thrill of the big win – which means they can’t be ignored.

HOW DO MODERN JACKPOTS COMPARE WITH OTHER TOOLS OPERATORS HAVE AT THEIR DISPOSAL IN TERMS OF THE ACQUISITION AND RETENTION OF PLAYERS?

There isn’t much that beats the message that you could be one win away from landing an astronomical sum!

At the end of the day, each player dreams of that big jackpot hit, as that’s what chance is all about. Utilizing jackpots in a business’ CRM strategy is very powerful, but this needs to be done well or it will end up costing too much.

Taking Dream Drop as an example for reactivating a lapsed database, compared to the use of some other classic tools on offer, such an exciting opportunity presents a far greater opportunity for uptake and success.

Advising the player that they could get 20 free spins if they log in - and informing them that Dream Drop is currently at €1.2m, with a guaranteed winner for someone currently ‘in’ the casino before it reaches €1.5m - is

a formidable combination. The win potential from normal slot games with low value is small and will not necessarily incentivize players to make the effort to log in for a small win.

Change that message to winning a larger sum, and reactivation numbers go through the roof.

ULTIMATELY, IF PLAYERS ENJOY THEIR SESSIONS MORE, THEIR LIFECYCLE WILL BE LONGER. WHAT INNOVATIONS ARE BEING DEVELOPED TO MAKE JACKPOTS MORE EXCITING AND ENJOYABLE?

The key thing is offering players the feeling of “Oh, wow, I was close” and creating those moments of engagementdriving jackpot rounds. Big classic jackpots can easily feel too much of a grind with little in terms of anticipation and excitement. The game design here needs to be spot on to deliver the most entertaining feeling for the deposited cash. A sense of value for money is an essential ingredient in retaining players.

This goes for both the game itself and the jackpot element – the modern player will not take to a subpar or mediocre game with a big jackpot attached to it. The combination of the two is what today's players want from their slot experience.

Creating familiarity with Dream Drop over different games will be refreshing to players as well. We’re creating multiple games connected to the same jackpot, and each game will have a different way for players to enter and win each jackpot. Figuring out how to achieve this across different games will be extremely gratifying for players and will enhance cross-sell between the games.

Canadian Gaming Business | 35

THE FOUR Ts & THE CANADIAN GAMING OPPORTUNITY

Authors from Segev LLP, detail the four ‘Ts’ that make Canada an enticing country for igaming companies to operate in.

36 | Fall 2022

f e a tu re

BY RON SEGEV, ANDREW NG, & REBECCA DALES

For years now, Canada has been a centre of igaming business activity, and the local industry has developed and attracted a large base of experienced gaming professionals, innovative start-ups, established entities, and active investors.

Here, we set out four great advantages that Canada has to offer Canada has to offer igaming companies: tax breaks, time zones, talent, and ticker tape.

TAX BREAKS

One of the g reat t a x prog rams igaming companies can take advantage of in Canada is the Scientific Research and Experimental Development Tax Credit Prog ra m (SR & E D). Your igaming company may be eligible for SR&ED if it is involved in, among other things, algorithm development, system performance improvement, interoperabilit y w ith third-par t y products, or rendering. The tax credit can be claimed for a list of allowable related expenditures that can include wages, materials, and overhead.

A Ca nadia n- cont rolled pr ivate corporation is eligible for federal and provincial corporate tax rate reductions on the first $500,000 of active business income earned in Canada in any given taxation year. The caveat is that this particular tax benefit is effectively limited to companies controlled by Canadian residents, though, as we will discuss below, for certain individuals, this is also less of a headache than most places.

TALENT

Some truly big names in gaming have come out of Canada. A maya G a m i n g , B o do g , E n g i ne Me d i a Holdings, Gamehost, and Score Media and Gaming, to name just a few, all came from the Great White North. In addition, Canadians have emerged as industry leaders, founding or taking senior positions w ith compa nies such as PokerStars, Caesars Digital, Pala Interactive, and a host of other companies that have since merged into today’s big gaming conglomerates.

Canadian immigration law makes it feasible for individuals to come to Canada to start an igaming company or work in one. You’re essentially looking at two systems: permanent residency and work permits.

For permanent residenc y, there are three general pathways. For the Canadian Experience Class, the main requirement is that the individual accumulates 156 0 hours of work experience in a “skilled” position over the course of three years.

Federally, a point system is used to determine qualification, spanning a w ide ra n g e of a rea s i ncludi n g education level, work ex perience, and language. Provincially, a separate applicat ion ca n be f iled to be nominated if you are, among other things, a high-skilled worker.

I f you’r e lo ok i n g t o br i n g i n international talent, the system is certainly set up for you to do so.

The Global Talent Stream program, in optimal conditions, allows the processing of 80% of applications in two weeks or less under two categories.

"IF YOU’RE LOOKING TO BRING IN INTERNATIONAL TALENT, THE SYSTEM IS CERTAINLY SET UP FOR YOU TO DO SO"

TIME ZONES

Canada and the US have always shared strong business ties. With the development of international igaming regimes and programs, that connection has only grown stronger. Compared with out-of-continent entities, Canada offers the excellent advantage of shared time zones and short travel times.

For example, Toronto, Montreal, New Jersey, and New York all operate within the same time zone. Vancouver, Los Angeles, Las Vegas, and Seattle operate in another, and between the two

there is only a three-hour difference.

This is extremely conducive to intercity business development and relations.

Shared time zones, shared language, and media markets that tend to bleed into each other work to create a situation where Canadians have a great understanding of American culture. Canadians are avid consumers of American sports culture in a way that no other country experiences.

This cultural awareness of the US among Canadians makes it easier to build Canadian-based customer service, content, SEO, trading, and other US or North American-facing teams.

TICKER TAPE

With all that in mind, perhaps the largest consideration for many igaming companies is far more singular: raising capital. Fortunately, accessing capital in Canada is fairly frictionless and cost-effective.

For many igaming companies, the goal is not to remain private, especially due to the capital-intensive nature of igaming business models. Canada is home to several exchanges: the Canadian S e c u r it ie s E x ch a n g e, t he N E O Exchange, the TSX-V, and the TSX, with listing requirements increasing in the same order. This means that companies can access capital at various stages and scale of development.

Going public is a lot less daunting than it seems and is an excellent way to obtain capital to develop your business and technology. Timing for each listing is highly case-specific, but the fastest everything could be completed would likely be six months, though more generally it usually takes about a year.

As you have probably already noticed, the barriers are fairly low.

The environment in Canada is highly favorable to new igaming companies to establish themselves and raise capital.

The “4Ts” descr ibed above, in conjunction with a healthy population of investors with an appetite for igaming investments, make the Great White North an ideal location to set up shop.

Canadian Gaming Business | 37

KAMBI:

STANDING OUT IN A ‘UNIQUE BATTLEGROUND’

BY SARAH ROBERTSON

38 | Fall 2022

Ontario - the market on everyone’s mind and one which is becoming increasingly competitive as more operators and suppliers look to get in on the action.

But how do you stand out?

inte r v i ew

“ALL OF THE OTHER PROVINCES ARE KEENLY WATCHING ONTARIO TO SEE THE SUCCESSES AND FAILURES OF THAT MARKET”

It’s been a few months now since Ontario welcomed a regulated gambling industr y, and we’re beginning to see how things are playing out. But with all eyes on the Great White North, it’s becoming increasingly important that betting and gaming operators are offering that ‘je ne sais quoi’ so that they can continue to engage - and more importantly, retain - bettors.

According to Sarah Robertson, SVP Sales at Kambi, it all comes dow n to the streng th of the product and an understanding of what bettors are interested in.

For Canada, as you can imagine, hockey is pretty high on the agenda.

In an interview at the recent SBC Summit North America, Robertson outlined the growing opportunities within the Ontario market, and the reasons why Canadian bettors need to be differentiated from their US counterparts.

WHY IS ONTARIO SUCH AN IMPORTANT MARKET?

O nt a r io h a s b e en a v er y important market for K ambi.

Obviously, it’s the first Canadian market to regulate and it’s a huge, expansive market that can rival some of the largest US states. Not to mention the province has a huge population.

The market is also full of very experienced bettors, because in Canada, grey market betting was very prevalent. So, Ontario is going to be a unique battleground for operators and suppliers to

really demonstrate the strength of their products.

WHAT WOULD YOU SAY HAVE BEEN THE KEY TAKEAWAYS AND LEARNINGS FROM YOUR EXPERIENCE OF ENTERING ONTARIO?

To reiterate what I was saying previously, the market is a very competitive one. It is an almost open market in terms of licensing.

So there’s a lot of US and North American operators who have entered into the market, but also a lot of very experienced operators with their roots in Europe. That’s proven to be a lot different to US states that have often had limited access.

Ont a r io is a lso unique in some of its challenges around advertising. So again, because there’s not necessarily the ability to just pay huge amounts of bonuses to attract customers, it’s really a market where we think that product strength and product capabilities are going to be critical.

AS A EUROPEAN COMPANY, WHAT WERE THE BIGGEST CHALLENGES THAT YOU FACED WHEN APPLYING FOR AN ONTARIO LICENSE?

Well, we really think of ourselves as a global supplier. We have offices around the world and have been working globally for quite some time across South America, Asia, and obviously in the US. In preparation for the Canadian market, we wanted to make sure that we understood what Canadian consumers want. I think Canadian consumers are too often blanketed as US consumers but they obviously have different behaviours. Different sports are

"ONTARIO IS GOING TO BE A UNIQUE BATTLEGROUND FOR OPERATORS AND SUPPLIERS TO REALLY DEMONSTRATE THE STRENGTH OF THEIR PRODUCTS"

important to Canadian bettors.

Hockey, for example, is obviously ver y popular, as is European soccer.

Making sure that we had really market-leading offerings, as well as a lot of combined ability within our product, is how we prepared.

We have obviously been working with regulators too to make sure that we had a compliant product – that was critical for us to be able to enter the market on day one.

IT’S STILL EARLY DAYS, BUT WHAT HAS THE APPETITE BEEN LIKE FOR YOUR BET BUILDER AND HOCKEY PRODUCTS?

It’s been great so far. Kambi is a Scandinavian company by heritage, so we had a really strong hockey product to begin with and have only improved it. We have a dedicated trading team and product team around hockey which also positions us really well.

Outside of that, we really built up the offering, especially across in-play, and also made sure that we had our Bet Builder product available for hockey with in-event and multi-event combinations, which is a big, unique proposition for Kambi that others don’t have.

It’s proven to be really, really popular with customers.

WHERE DO YOU SEE THE MARKET HEADING OVER THE NEXT 5 YEARS?

I think Ontario is obviously still very new. Everyone in the market – the regulator, suppliers, and operators – is watching to see where the top line revenues are going to go.

It’s also the f irst Canadian province to regulate. All of the other provinces are keenly watching Ontario to see the successes and failures of that market – I think we could see a lot of expansions across the other provinces within the next 12 to 24 months.

Canadian Gaming Business | 39

ARE CANADA’S SPORTSBOOKS SET FOR A SOCCER GOLD RUSH?

As the Canadian Men’s National Team prepare for the FIFA World Cup this winter, it begs the question of whether sportsbooks are ready for a significant uptick in soccer wagers amid a festival of the sport.

BY MARTYN ELLIOTT

For the first time in history, Qatar will become the focus for sports bettors around the globe when it hosts the 2022 FIFA World Cup this winter.

And for the f irst time since 1986, the tournament will feature Canada, after John Herdman’s team topped CONCACAF qualification.

However, while sportsbooks in most countries will be kept busy by the action at global sport’s biggest event, it is not yet 40 | Fall 2022

clear whether Canada’s participation will move the needle on soccer betting here.

While soccer may be Canada’s largest participation sport, television viewing f igures - a useful indicator of how popular a sport will be with bettors show the audience for it is some way short of that for hockey and basketball.

The Euros f inal between Italy and England was the ninth most viewed broadcast last year, but seven other spots

in the top ten were matches from the Montreal Canadiens’ run to the Stanley Cup Finals.

L ook back slightly further into history and it becomes clear that what is driving the viewing figures for sport is Canadian success. In 2019, five of the top ten spots were filled by Toronto Raptors’ NBA Finals games, while Olympic gold for ice dancers Tessa Virtue and Scott Moir topped the chart

f e a tu re

in 2018, with the women’s hockey final from the Games in third place.

St ars such as Bayer n Munich’s Alphonso Davies and Lille’s Jonathan Dav id have helped to create the st ron g est men’s squ a d i n l iv i n g memory, but they are unlikely to match the achievement levels of the Canadian women's team and it remains to be seen whether Qatar 2022 will be the catalyst for an explosion in the popularity of soccer as a spectator sport. However, there’s little doubt that soccer will enjoy a signif icantly higher prof ile in the coming years, as the country gears up to be a co-host of the 2026 World Cup. James Sharman, Head of Soccer Content at Parleh Media Group and host of Room 4-4-2, explained: “By 2026, I imagine Canadian soccer looks very different. Canada will be enjoying its second straight World Cup, and in an expanded format that will entertain hopes of advancing to the knockout rounds as its young stars will be in their prime.

“There will likely be a professional women's league in Canada, and the fan base will not only have grown, but will have become sophisticated. Soccer will become part of the national dialogue in the buildup, and once the tournament begins it will take over.

“FIFA knows how to put on a big event, and by the time the tournament finishes our players will be household names, the sport will be mainstream, and media brands such as Room 4-42 will be destinations for old fans and new fans alike.”

A s s o c c er 's p opu l a r it y g row s , sportsbooks will undoubtedly see more action, as fans look to back the national team and its stars playing in Europe and MLS. That will, in turn,

"JUST QUALIFYING FOR A WORLD CUP REPRESENTS SUCCESS, ANYTHING MORE IS JUST GRAVY"

provide opportunities for sports media companies such as Toronto-based Parleh Media Group, which specialises in streamed content designed to educate and entertain fans who enjoy a flutter.

It s E x e c ut i ve P ro ducer K e v i n Kennedy said: "Currently, soccer content is not a priority for the two big sports media brands in Canada - TSN and Sportsnet. Sportsbooks have different priorities and will invest in content that helps drive their objectives, which I believe will lead to more soccer content, and more interest and engagement.”

W hether 2022 proves to be the turning point for professional soccer in Canada, or the game has to wait until 2026 for the boom, existing fans are confident that Herdman’s team will entertain in Qatar.

“Canada is one of the most exciting teams to watch at this year's World Cup, and that is the opinion both inside and more importantly outside our country,” said Sharman. “That is because we are the great unknown, the rest of the world has no idea what to expect.”

The draw for the 1986 tournament

was unkind to Canada, pitting them against European champions France (led by the three-time Ballon d’Or* winner Michel Platini), a Soviet Union squad packed with players from the Dynamo Kyiv team that had recently lifted the European Cup Winners’ Cup (including Ballon d’Or winners Oleg Blokhin and Igor Belanov), and Hungary.

It has scarcely been any k inder this time round, w ith the Kev in De Bruyne-inspired Belgium, 2018 finalists Croatia, and Morocco joining Les Rouges in Group F. With reaching the k nockout st ages a seemingly impossible task, what represents success for Canada in Qatar?

“Just qualifying for a World Cup represents success, anything more is just gravy,” said Sharman. “Canada has been drawn into a tough group, where there is a good chance they will go winless, which is absolutely fine considering where the expectations were before qualification began.

“That said, John Herdman will talk big, and will convince his squad that they can and will win. Much is made of the '86 team not even scoring a goal, something I find extremely unfair, so I suppose if you want to silence the soccer haters; score a goal.” * The Ballon d’Or was still the European Player of the Year honour in 1986. It became a global award in 2007.

Canadian Gaming Business | 41

i ndu s try p ro f ile

BETTER COLLECTIVE:

HOW ARE THINGS IN ONTARIO SO FAR?

BY JD MCNAMARA

Now that Ontario’s regulated igaming market is a few months old, much of the conversation surrounding legal online gambling in Canada’s most populous province is centred around one question: “How are things going so far?”

JD McNamara, Country Director at Better Collective, who oversees operations of the company’s flagship Canadian site, Canada Sports Betting, breaks down a recently conducted survey of Ontarians that sheds some light on the ups and downs of the market during its first months of operation.

WHAT IS CANADA SPORTS BETTING?

Canada Sports Betting (CSB) is a resource for online sports betting in Canada. We aim to educate bettors and empower them to make well-informed decisions. We’re a Canadian site, with a Canadian domain, which is being run from Canada by a core team of Canadian employees. We’re truly local, and we understand the Canadian sports betting scene better than anybody out there.

WHY DID YOU CHOOSE TO DO A CONSUMER SURVEY?

Since the Ontario market launched, so much of the discussion has been about the industry - the regulations, the operators and interested third parties. We believe there is some confusion for the consumer right now, and there certainly hasn’t been enough of a focus on the sports bettor. We wanted to see how Ontarians are feeling and try to verify our hypothesis.

WHAT ARE YOUR MAIN TAKEAWAYS FROM THE SURVEY’S RESULTS?

One of the biggest things we confirmed by doing the survey is that Ontarians are relatively interested in betting, but even among people who want to get into it, there’s a lack of understanding about how to get started and where to bet.

For example, of respondents who qualified themselves as “interested in betting”, 55.5% stated 42 | Fall 2022

"ONTARIANS ARE RELATIVELY INTERESTED IN BETTING, BUT THERE’S A LACK OF UNDERSTANDING ABOUT HOW TO GET STARTED AND WHERE TO BET"

they haven’t placed a wager since the market launched in April 2022. The fact that there’s a large percentage of people who want to bet, but aren’t betting, means there is a broken or at least bumpy customer journey for those consumers.

HOW CAN THESE ISSUES BE RESOLVED?

Part of the solution is sites like Canada Sports Betting creating more content that informs potential bettors and bettors on how and where to properly bet.

One issue with this solution is there are currently regulatory restrictions that don’t allow us as a gambling content website to fully communicate all relevant and necessary information to our readers.

Bonuses are one of the biggest differentiators among sportsbooks when initially choosing where to bet, especially among recreational or new bettors. Yet over 80% of survey respondents who indicated they were interested in sports betting don’t fully understand the requirements that come with bonuses.

HOW DO YOU THINK THE ONTARIO MARKET WILL GROW AND PERFORM OVER THE NEXT YEAR?

As we saw in the financial reports on Ontario’s first three months of legal igaming, there is room for significant growth in the market. And you can bet on it growing over the last quarter of 2022 and into 2023, where the return of the NFL, NHL, NBA and the World Cup will generate numbers closer to what the industry expects out of a province the size of Ontario.

Strength in Numbers

More than 160 member companies from 22 countries Nearly $21 billion in direct revenue • 61,700 employees 13 publicly traded companies • ONE POWERFUL VOICE Address worldwide industry expansion, regulatory and legislative issues • Discounts on major trade show booth space Promote responsible gaming initiatives • Updates from influential global industry leaders Advertising discounts in leading industry publications • Educational partnerships benefiting students and members Visibility in AGEM’s print advertisements • Exposure for publicly traded companies in the monthly AGEM Index Join AGEM today and work together with the world’s leading gaming suppliers.

Daron Dorsey, Executive Director +1 702 277 3641 • Daron.Dorsey@AGEM.org Tracy Cohen, Director of Europe + 44 (0) 7970 833 543 • Tracy.Cohen@AGEM.org Connie Jones, Director of Responsible Gaming +1 702 528 4374 • Connie.Jones@AGEM.org Design & photo-illustration by Jeff Farrell.com • AGEM and charter ESP member since 2007.

AGEM.org

©2022 Association of Gaming Equipment Manufacturers (AGEM). Membership list current as of June 2022.

IT’S A

THE CAT’S OUT OF THE BAG.

HIT!

OVER 3X VS HOUSE!* Prosperity Link’s performance is strong out of the gate, with enough thrills to tickle your whiskers.

Learn more at IGT.com/ProsperityLink

*EILERS-FANTINI Performance Report-May 2022

© 2022 IGT. The trademarks and/or service marks used herein are either trademarks or registered trademarks of IGT, its affiliates or its licensors. IGT is committed to socially responsible gaming. Our business solutions empower customers to choose parameters and practices that become the foundation of their Responsible Gaming programs.

Watch Prosperity Link in action!