Last week, GAN Ltd. reported financial results for the three months ending December 31, 2022, but also spoke more about why the Kulvet brand left Ontario’s iGaming segment. The company was competing with a group of promotional-friendly and familiar-looking sports betting sites in the province, and cited it as one of the most competitive markets in the industry. 릴게임
Ontario’s mobile sports betting and gambling sector is the first in Canada. If you meet the strict standards of the Ontario Alcohol and Game Commission, you can enter unlimited operators and sites. Kulvet was one of the first operators to go online when the market opened in April 2022, and is now the first to leave online.
In mid-March 2023, Kulvet announced that he would leave the market and that GAN would now focus on Latin American territories such as Mexico instead of Ontario. GAN CEO Dermot Smurfit said the company is not seeing a clear and fast path to profitability in markets outside of Latin America, and will either stop operations or cut investments.
The CEO noted that the number of purely entrenched operators and the increased promotional environment did not represent a path to profitability or provide the same kind of return as the company’s investment in the LatAm sector. He shared that the resources prepared for Ontario sports betting will now go to the high-yield market and generate cash flow.
In addition, Smurfit explained that the market was a competitive and promotional obsession within a few months of operations, driven by new entrants and brands that previously operated in the grey sector. He added that tons of U.S. brands, combined with operators who have been there for quite some time, are pushing very aggressively toward the market.
GAN’s CFO also elaborated that the operator was experiencing other challenges in the ontaria market. The official said the company could violate loan terms and potentially accelerate the need for repayment. The brand is also in talks with lenders over revising it to comply with loan agreements, but no agreement has been reached yet.
While Kulvet is leaving the market, other operators are entering the market to this day. In March 2023, the competitor announced its entry into the market. The gambling brand is licensed by the Ontario Alcohol and Gaming Commission and can now showcase its iGaming products in Ontario through casinos.exe platform. Its operation will start with eight casino games.
In addition, March saw the debut of Paris Play in collaboration with Caesars Sportsbook & Casino. Ontarians who register or have accounts on the iGaming platform can now enjoy many of the provider’s global titles. These include popular things such as the God of Keme, the Spirit of Mustang, and the Wealth of Wolves.