Canada’s sports betting market is undergoing a significant transformation. The recent legalization of single-game sports wagering has opened a massive market for sports betting operators, stirring speculation about which operator is best positioned to capitalize and how much they stand to gain.
The Safe and Regulated Sports Betting Act, also known as Bill C-218, was signed into law, legalizing single-game sports wagering in Canada. This legislation is now on its way to Canadian provinces to be implemented locally. The largest province, Ontario, is expected to take action on the matter later this year.
This expansion of the sports betting market beyond parlay betting and lottery schemes has created a surge in licensing opportunities for both domestic and international sportsbook operators. The potential business opportunity is enormous, with the Canadian sports betting market alone estimated to be worth $2.2 billion by 2030.
Senior analyst at Macquarie Group, Chad Beynon, believes that the Canadian sports betting market could be worth $2.2 billion by 2030. He also estimates another $2.4 billion for iGaming, assuming full legalization of the market. These estimates assume that every adult Canadian will spend on average $60 per year on sports betting and $75 on online casino games.
According to a white paper authored by PlayCanada, the Canadian legal sports betting market could eventually generate $25 billion in retail and online wagering annually. This best-case scenario would include the legalization of single-game wagering in every province and territory.
Several US-based sports betting operators, including DraftKings, Caesars Entertainment, BetMGM, and Penn National Gaming, as well as Toronto-based Score Media and Gaming, are well-positioned to profit from the huge potential opening up north of the border.
DraftKings has evaluated the potential of the Canadian gaming market between $5 billion and $8 billion, while BetMGM values it at $7 billion. TheScore Media and Gaming, a Toronto-based company, is considered the best-positioned gaming company to take advantage of the single-event betting legalization.
The future of sports betting in Canada looks promising. With the potential to generate billions of dollars of gross proceeds and hundreds of millions in taxes and fees annually, the Canadian market is an attractive opportunity for US operators.
However, the Canadian market will be decentralized, leaving each province and territory to adopt legal sports betting and create their own regulatory frameworks. This decentralization means that many questions remain about what the Canadian market will look like once it has been built out.
Despite these uncertainties, it is safe to say that sportsbooks view Canada as one of the largest single remaining opportunities in North America. As the market matures and more provinces adopt single-game wagering, the Canadian sports betting landscape will continue to evolve and grow, offering exciting opportunities for operators and bettors alike.
Technology has played a significant role in the expansion of sports betting in Canada. The advent of mobile betting apps has made it easier for bettors to place wagers from anywhere, at any time. These apps offer a wide range of betting options, from traditional sports like hockey and football to esports and virtual sports.
Moreover, advancements in data analytics have allowed sportsbooks to offer more competitive odds and a wider range of betting markets. Bettors can now wager on everything from the outcome of a game to individual player performances, adding a new level of excitement to sports betting.
The legalization of sports betting is also expected to have a significant impact on Canadian sports leagues. Leagues like the NHL, CFL, and NBA stand to benefit from increased fan engagement and potential partnerships with sportsbook operators.
For instance, the NHL has already entered into several partnerships with sportsbook operators in the US, and it’s likely that similar partnerships will be formed in Canada. These partnerships could include branding opportunities, data sharing agreements, and even the integration of betting information into broadcasts.
As we can see, the expansion of Canada’s sports betting market represents a significant business opportunity. With estimates suggesting that the market could be worth billions of dollars by 2030, the future of sports betting in Canada looks bright. As the market continues to evolve, it will be interesting to see how operators capitalize on this opportunity and how the landscape of sports betting in Canada changes in the years to come.