Rush Street Interactive (NYSE:RSI) is leveraging its social casino brand, CASINO4FUN, to enter the Canadian market.
The gaming company said it plans to roll out live money online casinos and sportsbooks in Canada in the months ahead. For now, the free-to-play online casino and sportsbook will act as the operator’s presence in the country.
RSI expects to launch real-money online casino and sports betting in Ontario under its BetRivers brand in the coming months, subject to licensing and regulatory approvals. In the meantime, CASINO4FUN will enable the Company to build its brand and player database and promptly provide these players access to complete the registration process for the BetRivers real-money platform upon launch,” according to a statement.
Earlier this year, Canada approved single-game sports wagering, and analysts are bullish on the market’s online sports betting prospects, prompting a rush among US-based operators to carve out niches north of the border.
The Safe and Regulated Sports Betting Act went into effect on Aug. 27, setting the stage for regulation at the provincial level. With that comes a significant opportunity for operators and governments alike. Under a bull case scenario, single-game wagering in Canada could lead to a handle of $25.3 billion, revenue of $2.02 billion, and tax receipts of $404 million, according to PlayCanada.
RSI Focusing on Ontario
As is the case with some rival operators, RSI is focusing its Canada efforts on Ontario – the country’s largest province by population.
While some provinces’ lotteries are running sports wagering, Ontario is adopting a model that’s comparable to what’s seen in many US states where sports betting is permitted, allowing the entry of multiple operators.
Ontario is home to 14.57 million of the country’s 37.59 million residents, and is the most diverse from a sports perspective, with four professional teams from US leagues — two NHL franchises, the NBA’s Toronto Raptors, and Major League Baseball’s Toronto Blue Jays.
Penn National Gaming (NASDAQ:PENN) with its recent $2 billion cash and equity purchase of Score Media and Gaming (NASDAQ:SCR), Caesars Entertainment (NASDAQ:CZR), and DraftKings (NASDAQ:DKNG) are among the rivals RSI will encounter in Ontario.
For RSI, Canada Makes Three
Canada is the third country in which RSI is operational, joining Colombia and the US, where the company is the fourth-largest iGaming and online sportsbook operator on a combined basis.
RSI operates under the BetRivers.com and PlaySugarHouse.com brands and is currently available with either mobile or retail businesses in Colorado, Illinois, Indiana, Iowa, Michigan, New Jersey, New York, Pennsylvania, Virginia, and West Virginia.
Following a minority investment in mobile games developer Boom Entertainment, which was announced in August, RSI gains access to Louisiana, Mississippi, and New Mexico.