Last week, Kulvet announced that it would stop working in Ontario’s regulated eye-gaming market, sparking concerns across the state. The decision led to a wave of uncertainty and many wondered if more betting operators would emulate it and move away from the highly competitive local markets due to the open model. 온라인카지노
Ontario’s online gambling and sports betting market is Canada’s first online gambling and sports betting market as it allows unlimited operators to participate. Licensed by the Alcohol and Gaming Commission of Ontario. Kulvet was one of the first operators to go online in the market and is currently the first operator to stop working in the market.
In a press release last week, Kulbet explained that it would move out of the market as it focuses on maximizing profitability and investing capital and resources in areas with the highest returns, and that it would move funds elsewhere without identifying the short-term part of profitability due to competitive sites and the heightened promotional environment.
Ontario’s new division attracted many gambling companies, and when Kulbet debuted, there were 17 apps and websites online. However, data from AGCO’s subsidiary, iGaming Ontario, shows that there are currently 70 websites, and operators must acquire commercial contracts with iGO to make their market debut.
Operators who manage to obtain licenses sign one or two-year contracts with regulators. And with April 2024 just around the corner, some operators will see the end of a year-long licensing agreement. Some said they plan to renew their registrations and continue to be part of the provincial eye-gaming space.
Major companies like FanDuel still have a lot of money to pour into the market, but smaller companies don’t have the same capital. To operate in the marketplace, all operators share one-fifth of their revenue with the state and pay a regulatory fee of C$100,000 per year for each site they operate. These and other costs can accumulate and suffer from small brands.
Meanwhile, Amanda Brewer, the Canadian country manager at Kindred Group, argued that more operators could leave the market. She said it’s not something to celebrate, but the reality is to participate in a highly competitive and expensive market in North America. It remains to be seen whether more operators will leave the market after their licenses expire.
On the positive side, some operators are still watching the launch in Ontario, and are not afraid of Ontario’s competitive nature. In February, Betty announced a successful acquisition of more than $5 million in capital from a group of investors led by Carrani Capital. With this funding, the operator plans to finance its business in Ontario when it comes online in this sector.