This week, Fanatics announced that it has signed a deal to acquire PointsBet, a leading game brand, for about $150 million. 우리카지노탑 Now PointBet’s shareholders will vote on the sale in June, and the deal still needs regulatory approval. But this company’s acquisition raises questions about whether it will affect Ontario’s business
Currently, PointsBet operates in Ontario and the online gaming market for third-party operators launched in the spring of 2022. The Digital Sector is Canada’s first and is overseen by the Ontario Alcohol and Gaming Board. It also attracted the attention of numerous operators switching to the top five game jurisdictions in North America.
Canada Remains a High Priority Territory
In a joint statement, the two companies announced that the deal had been agreed. Both sides agreed that there are still a few steps left before the deal is finalized, but they still have confidence that it will happen. The parties concerned said they would provide more details and more information about the ink contract in the coming weeks.
But this week, Sam Swannell, managing director and group CEO of PointBet, was confident the company would continue its business in Canada. He said the level of cash investment required by the company in the United States to reach profitability is significantly different from that in Canada. He expects the operator to shift to profitability within 18 to 24 months without additional funding.
Mr Swanell further elaborated that in his first year in Ontario, the company had successfully raised brand awareness and that operators wanted to continue expanding based on their initial drive. He clarified that as part of the acquisition deal, the operator will retain control over the technology stack and market-leading in-game live betting options, which are gaining a high reputation in the industry.
The operator previously reported a net profit of $4 million in the third quarter of fiscal 2022. This is a 21% increase from the previous quarter. Most earned $2.4 million from online casino sections and $1.6 million from sports gambling. During this quarter, the operator had approximately 28,000 Canadian users.
Then, in the fourth quarter of fiscal 2022, the operator reported a slight decrease in total betting processing to US$11.1 million and total game revenue to US$500,000. But the company remains optimistic about its business in Canada. It also recorded double-digit revenue growth in U.S. and Canadian activities, an 18% year-over-year improvement.
It should also be recalled, however, that the operator’s business was not exactly smooth in Ontario because financial fines were imposed by the Ontario Alcohol and Gaming Commission. In May 2022, the watchdog said it violated provincial gaming standards with some advertising initiatives by posting posters on GO stations and GO trains, which featured Pointbet Canada to play for free.
Recognition of Social Responsibility
Also in early 2023, Leading Betting Brands announced it had won the RG Check program from the Responsible Gambling Commission. RCG is based in Toronto, Ontario and is one of the leading global authorities on responsible gambling. Operates independently of the industry, providing fair insight and service.