Canadian companies hoping for sports-betting expansion
A telecom giant and an upand-coming payment processor are among the Canadian companies positioning themselves to ride a wave of legalized sports betting that began in the United States, but could arrive here if the latest attempt at convincing the federal government to loosen gambling laws is successful.
The House of Commons was scheduled on Tuesday to debate Bill C-218, the Safe and Regulated Sports Betting Act, which would end Canada’s longstanding ban on single-game sports betting by allowing provinces to offer it.
That ban has been the bane of politicians from casino towns such as Windsor, Ont., who have tried unsuccessfully for years to overturn rules that force Canadian bettors to correctly pick at least two outcomes, rather than one, to win.
But the sponsor of Bill C-218 says that the landscape on legalized gambling has shifted.
“Everything has changed,” said Kevin Waugh, a Conservative Member of Parliament from Saskatchewan.
A 2018 decision by the U.S. Supreme Court allowed for legalized sports betting to spread across states and to make gambling a much more noticeable part of the sport-watching experience. The PGA Tour, for example, had live betting odds during the broadcast of a recent golf tournament, while last week’s World Series had an ad for an online sportsbook on the outfield wall.
The leagues themselves have been supportive of Canada opening up as well. In June, for instance, the commissioners of five professional sports leagues doing business in Canada sent a letter to Prime Minister Justin Trudeau and others voicing their support for single-game betting.
In the meantime, Canadians are opting to wager via offshore websites and illegal bookmaking operations. According to the Canadian Gaming Association, people here are betting around $14 billion a year through those sources, with only $500 million annually flowing through provincial sports-betting operations.
Taken together, the appetite for betting, the growth of the U.S. gambling industry and the pressure being applied by professional sports leagues could put wind in the sails of the latest attempt to end Canada’s prohibition on single-event wagering. Bill C-218 is likely to draw support from organized labour and other parties as well, as NDP MP Brian Masse spearheaded similar private member’s legislation in the past.
“Safe, regulated betting,” Waugh said. “That’s all we’re asking for. I think it’s time that we move forward on this.”
Canadian companies have taken note of North America’s growing gambling industry. Telecom giant Rogers Communications Inc. (which registered to lobby the federal government regarding Bill C-218) put up a job posting last month looking for someone to fill “the exciting new role of Director, Sports Gaming.”
That job, Rogers said, would entail eyeing potential partners and acquisition targets, among other things.
“This is a unique opportunity to be at the centre of Rogers Media and Sportsnet’s bold strategy of integrating Sports Betting into some of our core consumer offerings and to help us engage with our fans in new and exciting ways,” the posting said.
Some of Rogers current offerings include the Toronto Blue Jays baseball team and its Sportsnet television channels. Rival BCE Inc. also has a site focused on sports betting that is run by its TSN division.
A Rogers spokesperson said it was too early to share further details, but the company isn’t alone in Canada in trying to tap into the betting business.
Toronto-based Score Media and Gaming Inc., which has more than three million average monthly active users of its media app, also has another app through which gamblers can place wagers in New Jersey, Colorado and Indiana.
“And it looks like we’re really close to it happening in Canada,” said John Levy, founder and CEO of TheScore. “We’re very, very excited about the prospect all over North America, but particularly in Canada, because I don’t think we’re going to take a backseat to anybody up here.”
Other companies looking to profit from the growth of gambling include Montrealbased Nuvei Corp., which recently pulled off the biggest tech IPO in the Toronto Stock Exchange’s history. The payment processor recently earned approvals that will allow it to serve the sportsbetting industries in Colorado and Indiana.
“Safe, regulated betting. That’s all we’re asking for. I think it’s time that we move forward on this.”
Kevin Waugh Conservative MP