During an interview, the President and CEO of the Canadian Gaming Association shares insights about the forthcoming betting opportunities in Ontario, the anticipated operators, and the surrounding tax implications.
According to Paul Burns, the President and CEO of the Canadian Gaming Association, there is a significant opportunity for the industry when it comes to establishing favorable tax rates and regulations. This approach aims to foster a thriving sports betting landscape with multiple operators rather than imposing high taxes that could shrink the market.
Burns mentioned that his organization is actively engaging with government representatives as the market begins to develop. He noted that the Safe and Regulated Sports Betting Act was only recently enacted, on August 27, making the Ontario Lottery and Gaming Corporation's PROLINE+ product the sole legal avenue for sports betting in the province at this time.Ontario sports betting As of early October, the OLG reported that over $3.45 million in bets had been accepted since the launch of PROLINE+. The anticipated comprehensive rollout of online sports betting and iGaming in Ontario is on the horizon.
Burns expressed appreciation for the collaborative spirit of government officials in engaging with industry players as they formulate policy. Increased communication is evident, which he believes will benefit the overall market. In addition to single-event sports wagering, he is optimistic about a vibrant marketplace forming down the line.will likely happen in early 2022 .
"They might not achieve perfection immediately,\" he remarked, expressing confidence that the government is committed to fostering a successful market, which is all that stakeholders can hope for.
Burns pointed out that there is considerable interest in Ontario at the moment. He emphasized that a key takeaway from the recent Global Gaming Expo (G2E) in Las Vegas was the overwhelming interest from private operators in Europe and the U.S., who are keenly watching developments in Ontario. The prospect of an open market means that a diverse range of operators, particularly newer ones, will have the opportunity to obtain licenses.
The Journey Toward Single-Event Sports Betting in Ontario: Our Path Forward
OntarioBets: How do you see the competitive Ontario market developing by December?
Paul Burns: \"Significant progress has been made, and things have moved at a relatively fast pace thus far. However, I’m not certain we will meet the end of December target for the market launch as there is still much left to finalize. Nevertheless, I believe betting on the Super Bowl will be viable for consumers. Watching this evolution has been thrilling, and we feel optimistic that we're heading in the right direction. Ultimately, it's going to be advantageous for the consumers.\"
OntarioBets: What are you hearing regarding the proposed tax rates?
Paul Burns: \"We’ve heard of a revenue-sharing proposal that suggests an 80-20 model, with the government taking 20%. Much of the conversation around sports betting focuses on the specifics of how these figures would be determined. If there is room to deduct promotional costs and incentives, it could help to lower that percentage. However, that model could position Ontario as one of the higher-tax jurisdictions for sports betting in North America. The Canadian Gaming Association has recommended a tax rate closer to 10%. It's crucial to recognize that this is a low-margin industry. While sports betting generates substantial economic activity, profit margins for sportsbook operators are quite narrow.\"
It’s important for providers to deliver a competitive range of options within the legal framework. A diverse, regulated marketplace will diminish the incentive for individuals to seek out unregulated alternatives. Many people may not grasp the vastness of the existing grey market, which is why we are advocating for policymakers to understand the necessity for a robust market offering. Fortunately, we’ve found the government receptive to our viewpoints, and there’s hope for a better revenue-sharing agreement yet to come.
OntarioBets: What’s the current interest from private operators seeking licensing through the Alcohol and Gaming Commission of Ontario?
Paul Burns: \"There is considerable interest. Many leading operators are eager to engage with the Ontario market. A few have already submitted applications, but many are awaiting clarity on key outstanding details, including the precise date for the market to launch. This timeline will likely influence many decisions moving forward. Companies are nearing the deadline for their applications to be ready in time, and everyone is closely monitoring developments. The forthcoming market should offer a wealth of choices to consumers, which aligns with the government's primary goal of fostering healthy competition.\"
Ontario boasts an advantageous environment for businesses, replete with innovative technology, a skilled workforce, attractive tax benefits, and access to TSX capital markets. It presents an excellent opportunity for businesses to establish themselves and cater to the North American market and beyond. There's growing recognition that the benefits extend far beyond mere tax revenue, as new jobs and enterprises will sprout within this burgeoning marketplace.
Update: Since the writing of this article,
market predictions indicate that betting platforms are set to launch in February 2022.
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