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Canadian Gaming Business Vol 17 No 1

Page 1

Building a solid framework

iGaming Ontario outlines market successes and looks towards bright future

From hustle to social purpose BCLC lifts lid on good causes and marketing plan Creating a better future Louis Bull Tribe on why Bear Hills is essential for prosperity
Vol. 17No. 1Spring 2024
Take a seat Kurt Gissane celebrates taking up a spot on the CGA board

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Hello and welcome to the latest edition of the Canadian Gaming Business magazine.

It has been an exciting period for the industry over the last few years, with the Ontario model establishing itself as an incredibly popular jurisdiction for private operators. The opening two years of the market have shown that Canada can be a leading nation for gaming owing to its dynamic economy and competitive framework.

A key question we at Canadian Gaming Business are asking is ‘where can Canada go from here?’ With Ontario enjoying success in its private sector model, other provinces are flourishing with the provincial lottery corporations continuing to be the sole legal provider of online gaming. But will this last the test of time, or is there

appetite to build upon the framework that Ontario has developed?

In this issue, we speak to plenty of key stakeholders across Canada, including Martha Otton, Executive Director of iGaming Ontario, about the last two years as well as how the organization was built from scratch. We also touch on key issues such as the advertising debate that has raged across Canada this year. ThinkTV and the CGA give us insights into whether the AGCO’s standards and outside noise are fair.

Elsewhere, we speak to Mohegan about their land-based presence in Canada, as well as to Bear Hills Casino about how First Nations casinos can compete in an online world.

As always, the provincial lotteries continue to have an influential role in

the industry and we get insights from BCLC on its mission to serve a ‘social purpose’ as well as from the Canadian Lottery Coalition about the fight against offshore illegal operators. All this and more features in this issue of CGB.

If you are reading this, there is a high likelihood that you are at the Canadian Gaming Summit at the Metro Toronto Convention Centre. On behalf of everyone at SBC, I would like to extend a warm welcome to the 27th edition of the conference.

Thank you for reading and enjoy this issue of CGB!

CanadianGamingBusiness.com 5
EDITOR’S NOTE
NOTE
EDITOR’S
Charlie Homer

Leading the World

Paul Burns, CEO of the Canadian Gaming Association, delivers an impassioned defence of the gambling industry’s advertising strategy amid widespread criticism.

Two years on

Martha Otton, Executive Director of iGaming Ontario, reflects on the successes of the first two years of the private market, which has yielded $2.4bn in GGR.

Under the Spotlight

Catherine McLeod of ThinkTV gives CGB the television industry’s perspective on the advertising debate.

From hustle to social purpose

BCLC’s Natasha Questel discusses her role as Chief Social Purpose Officer and discusses why her personal story has influenced her professional life.

6   Spring 2024 08
contents
18 14 10

Creating a better future

Louis Bull Tribe tells CGB why the Bear Hills Casino opening could be transformative for the group.

Take a Seat

Kurt Gissane tells CGB all about his career that has now culminated in a seat on the board of directors at the CGA.

Consolidation: A Blip or a Future Trend?

Multiple operators have left the Ontario market; CGB assesses if current saturation levels are sustainable.

Bouncing back at the Falls

Ray Pineault explains how Mohegan’s Canadian casinos have bounced back from the pandemic.

After Ontario

Amanda Brewer of the CGA examines the state of the nation and looks at which province could follow in Ontario’s footsteps.

All material is strictly copyrighted and all rights are reserved. No part of this publication may be reproduced in whole or in part without the written permission of Sports Betting Community Ltd. Although every effort has been made to ensure the accuracy of the information contained in this publication, Sports Betting Community Ltd cannot be held responsible for any errors it may contain. Sports Betting Community Ltd cannot be held responsible for the loss or damage of any material, solicited or unsolicited. The views of the publication are not necessarily the views of Sports Betting Community Ltd or those of the advertisers. Produced and published by Sports Betting Community Ltd: Registered address: SBC, Riverbank House, 1 Putney Bridge Approach, London, SW6 3JD Tel: +44 (0) 161 367 1250. Email: sales@sbcgaming.com. Web: www.sbcgaming.com For daily news relating to the Canadian sports betting, casino and lottery business, please visit CanadianGamingBusiness.com.

CanadianGamingBusiness.com 7 22 26 30 34 38

It is ethical and appropriate for licensed operators to promote their brands

Leading the World:

The Truth About Advertising Standards for Sports Betting in Ontario

8   Spring 2024 CGA COLUMN

Iam still amazed at how there are people who never let the truth get in the way of telling the story they want to tell. Manipulating public opinion isn’t a new phenomenon and regrettably is increasingly being practised with fresh vigour.

There are those who oppose Canada’s growing gaming industry and are applying what Stephen Colbert described as ‘truthiness’ in their rhetoric. I need not repeat their rhetoric here - lest we give it more oxygen than it deserves.

What they are saying feels right to them, but I need to strongly emphasize that what they are saying is simply not true.

Here are the facts:

• Unrestricted access to online casino and sports betting has existed for over 20 years - in an unregulated context that did not create a strong domestic industry within Canadian control.

• Gaming advertising has been highly regulated across Canada for over 30 years.

• Ontario was the first province to create a regulated environment to license and oversee online sports betting and casino games, to bring stronger oversight and consumer protection - and encourage local investment.

• New Ontario-based rules prohibit the use of active or retired athletes unless the advertisement is explicitly focused on responsible gaming.

• There are over 20 individual requirements related to advertising standards which cover a wide range of activities from the location of outdoor advertising to the prohibition of mass-market advertising of bonuses or incentives. Operators are required to monitor players’ activities, actively intervening if they spot problematic behaviour.

• Online gaming operators have robust “know your customer” policies for opening customer accounts, to prevent minors from accessing sites registered to operate in Ontario.

• In addition to the Alcohol and Gaming Commission of Ontario’s (ACGO) regulatory standards, operators must submit all TV commercials to ThinkTV for clearance.

• Professional sports leagues and broadcasters are establishing policies and codes of conduct, reflecting the guiding principles that we have built together with the Responsible Gaming Council.

• CGA members are working hard to ensure the highest levels of player protection – which they

have been doing since the market launched on April 4, 2022.

• Lastly, but more importantly, advertising volume has declined.

• Ad volume was down by 12% in September 2023, 31% in October 2023, and 29% in November 2023 compared to the same months in 2022. Gaming ads made up under 3% of ads during this year’s Super Bowl.

• Research conducted by IPSOS found that gambling ads are not perceived to be as widespread as is assumed.

• Out of the surveyed Ontario population, only 19% reported seeing sports in-game marketing or sports in-game “commentators” or analysts.

The CGA is fully supportive of responsible gambling efforts, regulated advertising and the increasing efforts our members are taking to keep gaming and sports betting fun and safe. We actively participated in the AGCO consultation on the changes to igaming advertising standards - and were in favour of the new rules.

But this is an important time for our industry. And like other new and growing sectors of the economy, competitors are seeking market share and to build brand awareness within the context of Ontario’s licensed, regulated market.

Within the existing constraints established by our regulators - plus the additional guidelines and standards set by leagues and broadcast partners - it is ethical and appropriate for licensed operators to promote their brands.

“Tall Poppy Syndrome” is a Risk We Cannot Ignore

Canada is, in my view, the greatest country in the world. Yet, there has been an undercurrent of our history that has limited the potential of our best and brightest.

We are, and can remain, global leaders in online gaming. But our ability to succeed and create domestic jobs and economic growth from building platforms and systems that can be applied globally will be at risk through over-regulation and baseless accusations.

The CGA will continue working to ensure that future changes are driven by facts and evidence versus emotion. Gambling advertising is highly regulated already, and that regulation here in Canada is leading the world.

CanadianGamingBusiness.com 9 CGA COLUMN

TWO YEARS ON BUILDING ON A SOLID FOUNDATION

Speaking exclusively to CGB, iGaming Ontario’s Executive Director Martha Otton reflects on a whirlwind two years of regulated online gaming and analyzes just how far the market can go in the future.

It’s 10am on the second anniversary of Ontario’s igaming market when CGB catches up with Martha Otton, Executive Director of iGaming Ontario. Just before heading to a celebratory gathering with some of the industry’s biggest names, Otton speaks from her office in the government agency’s brand new facility.

iGO’s first full-time office as an organization, it serves as a reminder that when it was established, pandemic restrictions were still in place, meaning that, until now, iGO staff had rarely shared a common space.

Establishing a new government agency is a notoriously slow and laborious process, but adding a pandemic challenge to the mix

made the endeavour even more difficult. Yet, iGO formed in 2021 and has spearheaded a successful market.

Otton outlined: “To do that over two years has really been really rewarding to see. We did this during a pandemic so it’s not the easiest thing to do in the world.

“When I took on this role, the internal work that needed to be done was something I didn’t appreciate in setting up a new organization and ensuring that we have the right skill sets in place. We developed a culture here that I hope we’re able to maintain that talks about how we work with industry in order to make this success continue.”

10   Spring 2024 COVER STORY

But two years on from launch day, it is clear that Ontario has built a unique, robust and fruitful market that has the potential to be one of the world’s most prominent online gambling jurisdictions. iGO has been at the heart of the market’s growth as a subsidiary of the AGCO and commercial partner of all 48 operators.

Otton reflected on the successes of the last 24 months: “If I think about what the government stated intentions were in opening up this market, there’s consumer choice, consumer protection, capturing lost revenue, and leveraging the private sector expertise.

“We have close to 50 operators in the marketplace right now, which makes us I believe, the most competitive market in North America; we have responsible gambling provisions, both through the AGCO standards and what we require through our operating agreement; our gross gaming revenue is $2.4 billion this year, which is a full billion more than last year; and I have regular conversations with the operators and I think that we are a better market because of that expertise that they’ve brought in from other jurisdictions that they’re operating from.

“So, how do I think the first two years have gone? I would say very well.”

And it is clear to see why Otton, iGO and the entire industry is looking at Ontario’s market with satisfaction. That headline figure of $2.4bn in GGR in the last 12 months points towards a market that is generating significant success. It marks a $1bn hike from the first year of operations, and reinforces the notion that Canada’s most populous province is one of the most exciting jurisdictions in the world with this rapid growth.

Aside from the direct income, which is expected to raise over $400m for the Treasury’s coffers by April 2025, the private marketplace has also ushered in an indirect economic boom to the province. Last year, a Deloitte report published in partnership with iGO revealed that the industry’s economic impact amounted to $1.54bn, with $900m of that coming in the form of wages. The jobs created by the industry numbered almost 12,000. Moreover, the report speculates those numbers are all on the rise.

CanadianGamingBusiness.com 11 COVER STORY

We have good conversations with the operators, but we’d like to try to be able to get a little more insight into the players in Ontario

12   Spring 2024 COVER STORY

Otton explained that this is having a huge benefit to the wider Ontario economy, given that online gaming is focused on hiring highly skilled, STEMtrained professionals on significantly above average salaries of $100,000.

“I think that the labour pool here is very attractive to operators. We have had a number of operators either expand or open offices directly in the province. BetMGM now has a Toronto location, PointsBet had an office opening within the past year or so. Flutter has a substantial footprint in the province, which they’ve expanded over the past couple of years. GeoComply, opened an office in Toronto as well.

“So we do tend to focus on the revenue that we’re returning to the province, but there is a significant associated benefit to the province with this market.”

Another noticeable aspect of Ontario’s private model has been the channelization of players from the gray to regulated market. Per an Ipsos Canada study, over 86% of all gaming in Ontario is done so using regulated operators, far exceeding the initial expectations.

It is worth bearing in mind that the long-established gray market meant that some of those operators became regulated, therefore taking those players with them into the regulated space, which would boost those numbers. Nevertheless, an 86% rate shows the work that stakeholders have done to make players aware of those sites that are regulated.

“One of the things that I think we’re learning is that players in Ontario are very sophisticated because they’ve had access to products in the past,” Otton remarked. “I think that they’re

embracing the regulated product and the variety of options that they have and the number of operators and the number of games that they can play.”

The market has not been without its challenges, however. Notably, and as other sections of CGB will explore, advertising standards have been a hot topic of debate, since the AGCO updated its guidelines on marketing, banning the use of current sports stars and celebrities.

Otton chimed in on the debate. “Ultimately, we’re aligned with the intent of what they’re trying to achieve. In the most competitive market in North America that operators are vying to establish their footprint and one of the ways they can do that is through advertising, but of course, no one wants to entice the vulnerable population into the product there.”

Protecting vulnerable players, all players in fact, is a cornerstone of the Ontario regime as outlined right from the beginning. The prominence of the Responsible Gambling Council in the framework, mandating all operators obtain the RG Check accreditation within two years, underlines the importance of RG to the regime.

Otton elaborated on iGO’s RG duties and strategy: “We’ve done a lot of surveying over the past 12 months and in one of the surveys we did, we asked players about their awareness of RG tools on the sites that they were playing on. It was 65% who were aware of the RG tools that were available. Frankly, that was a bit higher than I thought it might be so sort of the next step for us is if you’re aware of them, are you actually using them?”

Moving forward, iGO is seeking to improve systems to ensure that the

market keeps growing but also protects players. The agency recently put out an RfP for a centralized self-exclusion system which would allow players to voluntarily exclude themselves from all operators in the province, rather than doing so individually.

Otton noted that while a legal requirement under the gaming laws, iGO has sought best practices from global markets. She explained: “We’re definitely having those conversations with other jurisdictions and with our operators who are in other jurisdictions, and in fact, we established a working group with our gaming operators prior to releasing the RFP for the centralized self-exclusion registry so we could benefit from what has happened in other jurisdictions.”

As well as the self-exclusion system, the agency is always seeking improvements from an operational perspective to create continuous growth. This includes improving the data it has available on players and Otton hinted that some extra data may be available to the public at some point in the future.

But while iGO is in consistent discussions with operators as part of their commercial arrangements together, the body is seeking to be more transparent with consumers, aiming to be “a voice of the players too”.

Because despite raking in significant sums so far, iGO and all other stakeholders are looking forward to more growth in the coming years and there is always room for further development.

“We have good conversations with the operators, but we’d like to try to be able to get a little more insight into the players in Ontario.”

CanadianGamingBusiness.com 13 COVER STORY

Given how much Canadian sports betting advertising has been in the hot seat, one might think each televised sporting event is wall-to-wall betting commercials.

What often gets lost in the conversation though is that Ontario has one of the most limited advertising schemes in the world. When the market launched in 2022, it was the first North American jurisdiction to explicitly ban inducement-related advertising. It was a sharp change from the US, where operators touted huge sign-up offers for as much as $3,000.

As ThinkTV President and CEO Catherine MacLeod noted, that already makes Ontario stand out from most other gambling markets around the world.

“We don’t have any inducements as you know, and that’s different from practically any scheme that I’ve come across,” she said. “And that’s a really, really big piece of what the AGCO was intending to do.”

ThinkTV is owned by the major Canadian broadcasters. The company works with advertisers and ad agencies to ensure that the television ads running on networks are in compliance with all forms of regulation, not just those from gaming regulators.

14   Spring 2024 FEATURE

UNDER THE SPOTLIGHT:

Have gambling ads gone too far?

Advertising standards have dominated the headlines in recent months as the AGCO amended its marketing guidelines. In the wake of this, CGB chats to ThinkTV CEO Catherine MacLeod to see how the broadcasters view gambling ads.

In terms of sports and athletes, it’s pretty cut and dry. They’re not allowed except in responsible gaming ads

The demands of gaming regulators are getting tighter, too. Recently, the AGCO reinforced regulations even further, banning the use of athletes and celebrities with young followings in any advertising that is not expressly about responsible gambling.

Many have voiced frustration with the celebrity piece of this rule, as it leaves a lot of room for interpretation on who appeals to minors and who doesn’t. MacLeod agreed that there is room for confusion, but insisted that at least the athlete element of the new rules are clear.

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“In terms of sports and athletes, it’s pretty cut and dry. They’re not allowed except in responsible gaming ads. And then we can set that aside for a second,” she began. “The second part with celebrities, the rule is that they don’t want to influence young people, and so there is a level of subjectivity there.

“Advertisers have to look at the celebrities and determine whether or not this person is influential when it comes to young people in Ontario or in Canada in general… You have to look at their social media profile, look at the movies or the television shows they’ve been in. There’s lots of work that has to be undertaken by the advertiser in order to meet that standard.”

Since the new rules have gone into effect, TV ads featuring the likes of Aaron Paul, Wayne Gretzky and others are no longer gracing the screens of Canadian homes.

Meanwhile, though, other aspects of sports betting and online gaming advertising seemingly evade the kind of scrutiny TV draws. Many operators based in the United States post on social media dozens of times a day. While these posts may not be formal advertisements, they are points of engagement with an audience that includes young people. They also fail to undergo the same kind of evaluations that go into a big undertaking like a fully produced commercial.

MacLeod agreed that broadcasters are facing the bulk of the criticism, but thinks the industry has been more than up to the challenge.

“TV of all of the platforms has taken the most responsible approach in terms of vetting all the advertising that goes on, so

we’ve been very vigilant. I’ve been very impressed by the work of the broadcasters and the work of the gaming operators, to be honest, who have worked hard to ensure compliance, who are willing to work with ThinkTV, to make sure not only that we meet the gaming standards, but the broadcast standards as well. So there hasn’t been any lack of cooperation in that regard.”

The cooperation also extends to proactive measures to promote responsible gambling. Two years ago, ThinkTV partnered with the Responsible Gambling Council (RGC) to produce a public service announcement that was a playful spoof of some of the ads coming across the border that promoted safer gambling practices.

“The impact has been tremendous,” MacLeod said, noting that the pairing put out a follow-up PSA this past year.

What she thinks is most beneficial about the partnership is twofold. One, the ads put the experience of Ontarians front and centre. Rather than bury Canadian messaging among the long list of US resources in the fine print, these spots focus on the Ontario resources.

But, more importantly, the spot is an opportunity to be forward thinking. As MacLeod noted, the spot is not asking if someone has a problem. Instead it presents gambling for what it is: an endeavour where, regularly people lose. It shifts the paradigm of how people think about gambling and, instead of trying to reactively limit what goes on the air, it proactively challenges how Canadians are thinking about online gambling in general.

The impact has been tremendous
CanadianGamingBusiness.com 17 FEATURE

hustle to social purpose From

18   Spring 2024 INTERVIEW

CGB chats to Natasha Questel, Chief Social Purpose Officer at BCLC, to discuss her career journey to her new role as well as her main aims and ambitions for the corporation’s future.

Though just seven weeks into the role as Chief Social Purpose Officer at BCLC when speaking with CGB, Natasha Questel’s raw enthusiasm and passion for delivering for the greater good is abundant.

Her passion for delivering for communities and giving back to local organizations shines through during the conversation. Like most of us, Questel is shaped by her background but hers is a story of hustle.

Questel arrived in Canada in her mid20s after growing up in Trinidad before dedicating over 10 years of her career to non-profit and social purpose roles.

“I think along the way, just because of my background, I really felt inherently that I always wanted to be able to use my life, my journey and my experiences here to give back,” she told CGB. “There’s no way I would have even been sitting here today if a lot of people along the way had

not in some form or fashion given it back to me. So I think that was a big part of my DNA.

“I had to be a bit of a hustler to make a life in Canada and be a woman in business so I think part of the energy that I have and the optimism I have comes from that place of wanting to create change, and I think there’s no greater calling.”

Upon arriving in British Columbia, Questel specialized in marketing and found a career with what she described as “social purpose-led organizations” such as Earth Zone and Happy Planet, where she was President until 2023 before taking up a CEO role with One Girl Can, advocating for equity for women.

But what about BCLC was it that stood out to Questel when seeking that next step? Well, as she outlined, it was the potential to do good on a much larger scale.

CanadianGamingBusiness.com 19 INTERVIEW

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I really felt inherently that I always wanted to be able to use my life, my journey and my experiences here to give back

“Quite frankly, when I saw the BCLC posting, one of the things we do in the nonprofit arena is to look at impact. I thought, ‘Wow, what a dream job’, where else can I have more impact than at one of the biggest generators of income to the province in terms of supporting the community.”

In being the lead of social purpose activities at BCLC, Questel has big expectations driven by the provincial lottery’s history of delivery; since 1985, it has given over $28bn to good causes.

But while continuing to support local communities and business, evidenced in campaigns such as the Community Ticketing program, which allows groups to attend sports, arts and cultural events who may not have been able to, Questel is aiming to make BCLC a leader in the social purpose arena.

“One of the things that’s very impressive that I’ve noticed is this movement to almost be an open source of information to other organizations, doing a lot of the heavy lifting upfront in terms of what does it mean to be truly socially purpose-led as a brand commissioning studies and sharing that information. Also, it’s about being a thought leader, in terms of how can we within British Columbia, be a leader in driving social purpose using business as a force for good?”

While creating BCLC’s social purpose strategy is a core part of her role, Questel’s job also comes with marketing duties. This, though, doesn’t come as a surprise for her given that the corporation’s biggest differentiator is its social good.

On the firm’s marketing strategy, she explained: “I think as a brand, we’re probably quite silent on some of these things. My initial observation a couple of weeks in is that there’s a lot of good that happens within BCLC and it’s not necessarily a business or brand that sheltered off the roof talks.

“I think one of the opportunities is to use the power and the reach of the brand to continue to create awareness of some of the areas where we’re looking to get involved into, to really use the power of the brand to shed some light on opportunities for support within the community issues that we’re seeing that need to be addressed.”

BCLC’s revenues, of course, go towards funding good causes across BC including health, education, charities and first nations. Yet funding all these causes ultimately derives from player losses.

Striking a balance between maximizing revenue and ensuring that players are not tipped over a problem gambling edge is a concern for any gaming operator. But given BCLC’s

remit to provide for good causes, does Questel believe there is a conflict between maximizing output for social purposes and protecting players?

“I don’t think it’s a conflict when it’s been as clearly identified as part of how we operate,” she asserted. “To me, it feels like our way of business. So our way of business is about creating healthy, clear experiences and healthy revenue with healthy revenue growth. So I think from the perspective of how we grow, it’s meant to be done in a very responsible way.”

Questel, as aforementioned, was just seven weeks into the role when she talked with CGB and while she was getting her feet under the table, digesting information and getting acquainted with the role was understandably a priority.

Yet as we all do in our careers, she set out a clear goal and mission statement to ensure she succeeds in her tenure with BCLC.

Asked about what would make her satisfied with her career, Questel concluded succinctly: “For me, success would look like how we created impact. So if the answer is yes, we’ve created impact and meaningful impact and value creation for everyone who interacts with our brand and I feel like I’ve done my job.”

CanadianGamingBusiness.com 21 INTERVIEW

Creating a better future

The jobs created by a new casino are always welcome but, as the Louis Bull Tribe’s Director of Socio-Economic Development Erika Bull-Giroux explains, in the case of the Bear Hills Casino & Travel Resort, they could be truly transformative.

22   Spring 2024 FIRST NATION

When customers pull off the Queen Elizabeth 2 Highway between Wetaskiwin and Ponoka to visit Canada’s newest casino, they can look forward to a warm welcome, relaxation and fun. For the Louis Bull Tribe, however, the Bear Hills Casino & Travel Resort is about much more than just delivering a great customer experience.

To Erika Bull-Giroux, the Tribe’s Director of Socio-Economic Development, it represents the prospect of a better future for her people. Importantly, it is also a future that generations to come will be able to benefit from, as it is creating jobs that do not involve having to move away from the reserve.

“It’s the beginning of something really great,” says Bull-Giroux of the property’s opening.

“We have other businesses - our gas bar, our golf course - but never anything this big. Our casino is going to give our members, and our neighbouring nations, the opportunity for employment and to gain experience in gaming.

“It will allow our people to develop careers and have ambitions to reach senior positions, to have the goal of becoming our GM if they want to.”

Bull-Giroux also believes that the career opportunities created at Bear Hills Casino & Travel Resort will do more than just provide jobs in the short term, they will also help to set an example for the next generation.

“Employment for our people has a ripple effect on our families, because people are coming home to work at the casino, ” she explains.

“That means their families and their kids see them, and get to be part of them bringing home a paycheck. They’re learning work ethic, they’re learning goal setting, they’re learning dedication, they’re learning to be committed.

“Seeing their parents working somewhere different is going to plant the seed in our kids’ future. It’s different for our people.”

A long-held dream

The process of getting a major business off the ground can often be frustratingly slow for First Nations and the Bear Hills casino is no exception. The idea was first mooted 30 years ago, but the project was shelved for a long period, before being revived in 2016.

By 2019 it had once again become a major focus and with a location agreed by the Louis Bull Tribe’s council, work began to secure funding and appoint a contractor. The ground-breaking ceremony took place in October 2022 and work progressed quickly ahead of the opening of the first phase in Spring 2024.

While the tribe has led on the project, Bull-Giroux is happy to report that the government in Alberta has been supportive in recent years and provided both practical and financial assistance.

“The early history of the project is that Louis Bull did have the first license and that wasn’t well received. Indigenous gaming was new at the time, so governments still needed a lot of work to understand operations,” she recalls.

CanadianGamingBusiness.com 23 FIRST NATION
I really do believe it’s strengthened our relationships with the different governments

“But since I’ve been working on it, I’ve seen a lot of support from the different governments. We’ve had a lot of obstacles to overcome with the development. The land the casino is built on was initially county land that we had to add to our reserve and that involved a lot of collaboration with the government, which I thank them for.”

She adds: “I really do believe it’s strengthened our relationships with the different governments because it’s really economic reconciliation that we’re practicing here with the different governments and our funders and partners.”

An ambitious long-term plan

All the work invested in planning meetings, negotiations, soil remediation, construction and fit out is now represented in tangible form by a casino and lounge, complete with a 200 slot gaming floor and ten table games. Unlike Canada’s commercial casinos, it is able to cater for smokers and the property features a designated smoking area housing 60 slots.

With an initial 80 jobs across management, hospitality, gaming and maintenance created for people from the Maskwacis area, the Bear Hills Casino & Travel Resort has already achieved one of the project’s key goals.

However, local residents can look forward to many more opportunities in the coming years, as the Louis Bull Tribe has ambitious plans for the property and aims to develop it into a thriving multi-use business.

The steel is already up for the Petro-Canada gas station that will become the next piece of the jigsaw to be slotted into place and a $515,000 government grant has been secured to assist in the construction of a restaurant-lounge area to promote community gathering and indigenous tourism.

Bull-Giroux concludes: “Then our future phases will have an event centre, a marketplace, and a hotel. So this is just the beginning of a lot of development.”

CanadianGamingBusiness.com 25 FIRST NATION

Aristocrat Gaming’s Chief Revenue Officer Kurt Gissane chats to CGB about leveraging industry experience to his new role as he takes up a seat on the board of directors at the Canadian Gaming Association.

Canada’s gaming industry is turning a new leaf with the emergence of open markets for gambling operators and Aristocrat Gaming Chief Revenue Officer and new Canadian Gaming Association Board of Directors member Kurt Gissane is integral to the change.

Gissane, who has more than 23 years of experience in the gaming industry, also has a new responsibility in Canada as a newly elected board member of the CGA. In December 2023, the CGA introduced both Gissane and BetMGM Canada Vice President Scott Woodgate as new board members. Woodgate and Gissane have joined an association that aims to work in the best interest of Canadians and their licensed operators.

“I hope to be a champion of the important work of the CGA, from shaping public policy and advancing the gaming industry to supporting stakeholder

needs,” said Gissane on his appointment to the board. “Together we’ll continue to work to evolve our industry through regulation and responsible efforts while contributing positively to communities across Canada.”

“I am hopeful that my experience will offer a unique perspective to continue to drive growth and exposure for the Canadian gaming market,” continued Gissane.

Gissane was appointed to the CGA’s board following an impressive year for the association. In 2023, the CGA celebrated the first full year of operations for Ontario’s igaming market while also allowing members of the association to voice their opinions and perspectives at town hall meetings. The CGA collaborated with SBC to hold a successful Canadian Gaming Summit at the Metro Toronto Convention Centre last June.

26   Spring 2024 INTERVIEW
WORDS BY JUSTIN BYERS

TAKE

A SEAT

CanadianGamingBusiness.com 27 INTERVIEW
Together we’ll continue to work to evolve our industry through regulation and responsible efforts

It also took steps to enhance responsible gaming initiatives and government advocacy through events and networking opportunities. The CGA hopes to close 2024 by successfully working with the government of Alberta and its Gaming, Liquor, and Cannabis agency to improve its gaming model. The group is also collaborating with the Canadian Senate to prevent unnecessary regulation.

Prior to becoming a new CGA board member, has held various leadership roles at Aristocrat but started 2024 by being appointed CRO of the company’s Gaming division. In his role, Gissane leverages his experience of working in various gaming markets across the world, including Australia, Asia, and North America.

“As my remit for the company has expanded over time, it is truly an honor to have this opportunity to take on more global responsibilities and have an opportunity to further showcase the Aristocrat brand around the world,” Gissane told CGB.

Aristocrat is coming off a strong 2023 as the company reported $4.1 billion in revenue in FY2023, a 13% increase yearover-year. The results were spearheaded by the company’s Gaming business, which is benefiting from Gissane’s expertise this fiscal year. The business has particularly posted growth behind its North American gaming operations.

“We continue to produce highperforming games and cabinets and have seen significant growth in priority specialty markets such as Canada and Oregon video lottery terminals, Illinois video gaming technology, and historical horse racing,” added Gissane. “We also continue to lead the industry in our investment in innovation and R&D in product, technology, and talent which differentiates us within the industry.”

Aristocrat Gaming is leveraging its innovation and technology to deliver new casino offerings for fans of America’s most popular professional sports league, the NFL. Last August, Aristocrat Gaming debuted the company’s first iteration of its NFL slots, Super Bowl Jackpots. The NFL-themed slots were in development for nearly two years after the NFL and Aristocrat Gaming agreed to a landmark multiyear slot licensing deal in November 2021.

The NFL and Aristocrat teamed up to release four additional slot titles, which hit casino floors toward the end of the 2023 NFL season. The titles, which provide their own unique experience, include NFL Overtime Cash and Super Bowl Link. Aristocrat Gaming and the NFL most recently unveiled NFL Winning Drive earlier this year, which allows users to play as their favourite team.

Aristocrat is also continuing to bolster its Dragon Link and Buffalo

brands, which are available at brick-andmortar casinos across the world.

The Australian-based company is poised for additional growth after being awarded a license to enter the Québec video lottery terminal market. Aristocrat Gaming is entering the province with a 10-game launch that includes some of the company’s most popular titles.

“Gaining entry into the Québec video lottery terminal market is another major milestone for the company, demonstrating our vested interest in these emerging segments, and allowing us to bring our award-winning products to new markets and their players,” said Gissane on the matter. “We’re excited for the opportunity to have a presence in Québec and are hopeful for a longstanding relationship with Loto-Québec.”

Gissane will continue to advocate for Aristocrat and the CGA as Canada’s gaming market continues to evolve. The Canadian market is expected to grow as advocacy groups, including the Québec Online Gaming Coalition, vie for open regulated gaming markets to drive profits. An open market could help Québec combat a record $11 billion deficit in its 2024-25 budget. Until then, Ontario will remain Canada’s most successful gaming market as it celebrates over two years of an open framework.

CanadianGamingBusiness.com 29 INTERVIEW

CONSOLIDATION:

A BLIP OR A FUTURE TREND?

The Ontario market boasts over 70 websites from over 40 operators, making it hugely saturated. But as multiple operators have already left the province, is further consolidation inevitable?

30   Spring 2024 FEATURE

t has now been two years since Ontario launched its igaming market with excitement, and it’s a market that is still looking to grow with more than 40 operators and over 70 regulated websites.

Plenty of big-name operators are providing an offering to the province’s players, including the likes of theScore Bet, bet365, FanDuel, DraftKings and BetMGM, alongside many local operators as well.

However, consolidation usually follows any market launch once the initial hype period has passed, and signs of exactly that have been seen in Ontario.

GAN’s online casino Coolbet exited the province’s market in April 2023, while Kindred’s igaming brand Unibet departed Ontario after previously announcing plans to be out of all North American markets by the end of the second quarter this year, subject to the regulatory process.

Could further market consolidation in Ontario follow? Is the market too saturated for smaller operators to compete against biggername brands?

Opportunities to grow and earn additional market share are provided when operators exit a market, and that’s exactly what could be on the horizon for an operator like Betty.

Founded in 2022 and operated by Betty Gaming CA, Betty has been operational in Ontario for about a year, offering online casino games to customers in the province.

Despite the short lifespan so far, Co-Founder and CEO Justin Park says Betty has a good spot in the market thanks to its female-focused offering, a niche which has helped them grow in the competitive environment.

Park said: “We’ve quickly become a leading player in the market, especially with women, whom we retain at a rate 3x better than men. We’re estimating that we have a 1.0% to 1.5% market share of the regulated icasino market in Ontario right now. We’ve achieved this in less than 12 months and are growing rapidly MoM.

“We see massive opportunity in Ontario and have genuinely connected with our players, building a core group of consumers who have become the foundation of the community we’re building. After only a year, we’re tens of thousands of users strong and have a team of more than 50 across three countries and growing.”

In a saturated market, it is important for any operator, big or small, to stand out from the crowd to acquire and retain customers, especially with so many alternative options available.

When it comes to going up against larger operators, Park noted that Betty hasn’t “found it so much of a challenge, but more of a learning opportunity”, spotting what works and doesn’t to “carve out our path” and provide a “differentiated offering” that the market was waiting for.

The CEO added that acquiring and retaining players comes down to “prioritizing player needs” and focusing solely on the Ontario market, rather than a wider approach for multiple jurisdictions.

CanadianGamingBusiness.com 31 FEATURE
I
The bigger players are just checking a box because they need to be everywhere

“So many online casinos treat players as just another number (a direct quote from one of our players!), but we’ve taken a different approach to building our business. We’ve prioritized a player-first experience and focused solely on growing within Ontario. Ontario is the only market we are in, and we don’t have plans to expand outside of Canada any time soon.

“Furthermore, our proprietary platform Midnight was custom-built for the Ontario market and is not weighed down by legacy code that supports many other jurisdictions outside of Ontario. We recently opened an office in Toronto, which speaks to our focus and commitment to the Ontario market. In summary, we’re building something different, which positions us favourably against the competition.”

So with the high operator and regulated site count, does Park believe

the Ontario market is too saturated at the moment?

“Not necessarily; while there are many operators, few are solely focused on Ontario the way we are. We’re entirely focused on Ontario. The bigger players are just checking a box because they need to be everywhere vs making Ontario their priority.”

Standing out in such a saturated market can be a challenge, but it is one Betty is ready to take on, with ambitions to grow even further beyond its current position by exploring new marketing strategies on top of its current methods, as well as a rebrand down the road.

Park claimed: “Our UA team is world-class and is constantly driving exceptional paid performance. Besides paid digital, we’ve leaned on word of mouth through our refer-a-

friend program, and our product and consumer experience speaks for itself.

“Now that we’ve mastered the product side of things, we’re working on a killer rebrand that we can’t wait to share, once we have our updated look and feel down, you’ll be seeing a lot more traditional paid strategies coming to the market, as well as organic content, fun events, collabs and eventually in-person experiences.”

As for whether further market consolidation will occur in Ontario in the coming months, despite the exit of some operators, Park expressed optimism and doesn’t think the province will be putting its foot on the break anytime in the near future.

“We don’t see the market slowing down any time soon, month over month, we continue to see growth in Ontario,” he concluded.

CanadianGamingBusiness.com 33 FEATURE

BOUNCING BACK AT THE FALLS

Lockdown was a setback for Mohegan’s Niagara properties, but President and CEO Ray Pineault believes the organisation’s two Canadian casinos will emerge stronger than ever.

Resilience, toughness, fortitude, bouncebackability - whichever word you choose to use for that most valuable of qualities, the team at Mohegan’s Niagara properties have had to show plenty of it over the past few years.

Both the Fallsview Casino Resort and Casino Niagara were, along with the rest of Ontario’s hospitality sector, forced to halt operations during the pandemic. Then, once restrictions were lifted, the local tourism industry’s recovery was slower than hoped for. And while dealing with all that, the added competition of legal sports betting and igaming arrived.

Despite this recent turbulent period, Mohegan’s President and CEO Ray Pineault is upbeat about the prospects for the lavish Fallsview resort - which occupies one of the most enviable locations of any casino in the world overlooking the globally-famous Horseshoe Fallsand its smaller neighbour Casino Niagara.

34   Spring 2024 CASINO
Our Niagara properties are an absolutely integral part of our international expansion

“I am exceptionally proud of our team and how they’ve withstood this and come back with the same vigour and spirit and guest service that they’ve always had to continue to drive Niagara Casinos as the premier casinos in the province,” he says.

“Canada bounced back a little slower than the United States, where there was that big surge in the first eight to 12 months. Canada was more incremental and we continue to see incremental gains and see it step forward. So I think that’s a true testament to our team and their hard work, and I look forward to the prospects that we continue to have in Niagara.”

That optimism stems in part from a belief that visitor numbers at Niagara Falls will soon outstrip pre-pandemic levels. “I think the Falls will come back stronger than ever. It’s just so spectacular. People are going to want to see it and I’m proud to be a part of it,” Pineault explains.

As a result, Mohegan can expect to attract millions of visitors a year from Canada, the US and further afield to enjoy gaming and hospitality at its two properties. Just sitting back and reaping the benefits of being located in one of North America’s most vibrant tourist destinations will not satisfy Pineault though, as he is keen to find opportunities to contribute more to the local economy and community.

One good example of this ambition is the opening of the $130 million OLG Stage, a 5,000-seat concert venue at the Fallsview launched in partnership with the Ontario Lottery and Gaming Corporation. It has hosted performances by Billy Joel and Jerry Seinfeld, with the likes of Roger Daltrey, Michael Bublé, Keith Urban and Nickelback all set to drive more footfall to the resort in the coming months.

“We’ve worked very collaboratively with the OLG,” Pineault enthuses. “They are regulators and there’s nothing more important to our organization than regulation, complying with the laws and having a good ethic in how we conduct business, so we’ve always had a good relationship.

“We both saw the tremendous opportunity to stage spectacular shows here that the OLG Stage provides for both of us and for the town, for the community, for tourism. It’s a tremendous partnership and I look forward to continuing to work with the OLG.”

CanadianGamingBusiness.com 35 CASINO
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Diving into igaming

Another thing that Pineault is positive about is legal igaming. When the Ontario market launched in April 2022, some feared that it could take significant business from the province’s land-based sector while it was in the very early stages of its post-Covid bounceback.

Mohegan opted to hedge its bets by securing a license and launching the PlayFallsview online casino and sportsbook. Far from cannibalizing the resort’s gaming revenue, it has proved to be an important new customer acquisition tool.

“We look at it as a way to introduce our current guests to another opportunity to engage with the Niagara casinos, and an opportunity to take

individuals who have perhaps only tried an igaming site and introduce them to our Niagara casinos,” the CEO explains. “We have cross-marketing going on and I think it’s a tremendous opportunity for the organization.”

Ontario’s igaming market has, of course, emerged as one of the most competitive in the world and, despite signs of some consolidation happening, Pineault expects that to continue. However, he remains convinced that Mohegan will thrive in the environment.

“We’ve taken a strategic approach to the igaming market and how we can utilize it,” he says. “If you look at where we’re live - whether it’s Connecticut, New Jersey or Ontario, and next we’re going into Pennsylvania - we’re doing it

strategically as part of the overall efforts of the organization.”

With tourism numbers rising in Niagara and an Ontario-facing igaming offering now established, Pineault views Canada as vital to the company’s longterm plans to carry on supporting the Mohegan people.

“Our Niagara properties are an absolutely integral part of our overall operation and our international expansion,” he concludes. “When I think about the locations that we currently have - wonderfully prime locations like Seoul in South Korea and ConnecticutI’d rank Niagara Falls up there with any of them. It’s a spectacular place to visit, a tremendous tourism opportunity, one of the great wonders of the world, and a beautiful hotel with diverse amenities.”

CanadianGamingBusiness.com 37 CASINO

After Ontario: What’s Next for igaming in Canada ?

Amanda Brewer, Senior Advisor at the Canadian Gaming Association, sits down with CGB to assess the state of the nation and discuss where, if anywhere, will launch an Ontario-style model next.

38   Spring 2024 FEATURE

Ontario’s igaming market has undoubtedly been a smash hit with industry stakeholders as the sheer volume of operators indicates. With 49 operators and over 70 websites available for players to choose from, the market has forged a real sense of competition which, in turn, usually leads to a positive experience for the end consumer.

So with the Ontario model flourishing over the last two years, naturally the discussion turns towards which province will be next to open up a private, regulated framework for online gambling.

But before diving in the deep end and speculating about the next province to switch onto privately regulated igaming, it is perhaps worth breaking down exactly what it is about the Ontario model that works so well.

In Amanda Brewer’s mind, the answer is clear: “This is thanks in large part to the risk-based approach the Alcohol and Gaming Commission of Ontario (AGCO) took with its standards, as well as the government of Ontario’s decision not to limit the number of licenses, offer an attractive tax rate, and recognize that consumer protections and consumer choice were equally important.”

CanadianGamingBusiness.com 39 FEATURE
For now, there is no word on Alberta’s model, tax rate, or timeline

As Ontario starts its third year and the market normalizes, attention is turning to other provinces, namely Alberta, British Columbia, and Québec, as their populations make them attractive jurisdictions for operators.

Yet, to date, only Alberta has signalled its intention to follow Ontario while there are political and legal hurdles to overcome elsewhere.

Brewer explained: “While igaming regulation was not referenced in the late February 2024 Budget document, the government released each Ministry Business Plan as part of the broader government budget and igaming was referenced in the Service Alberta and Red Tape Reduction Business Plan for 2024 – 2027.

“Specifically, the business plan s tated that the government will “ work with Indigenous partners, Service Alberta and Red Tape Reduction is further committed to developing and implementing Alberta’s online gaming strategy, with a focus on responsible gaming and provincial and Indigenous revenue generation. The ministry will also look for opportunities to reduce red tape in Alberta Gaming, Liquor and Cannabis (AGLC) regulated industries.”

“This amounted to reiterating the government’s commitment from the Minister’s Mandate letter last year.”

After some slow movement, Alberta all of a sudden came back into the headlines earlier this year as the province’s FY2024 budget included a $1m review of the Gaming, Liquor, and Cannabis Act, which could open the doors to an open market.

Then, in February, a Minister in the provincial government appeared at ICE in London to discuss gaming with fellow Canadian experts. Dale Nally, Minister of Service Alberta and Red Tape Reduction, travelled to ICE in early February and told a roundtable “if you like Ontario, you will like Alberta”.

However, Brewer warned that despite there being discussions around gaming in Alberta, any progress would be laboriously slow. “For now, there is no word on Alberta’s model, tax rate, or timeline,” she added.

Meanwhile, in Québec, Brewer tells CGB there appears to be “no political interest” in forming a privately regulated market, instead lawmakers are satisfied in maintaining the monopoly held by Loto-Québec.

That is despite heavy pressure from high-profile sportsbook operators who are campaigning for an Ontario-style model in Québec.

Speaking to CGB in 2023, Nathalie Bergeron, spokesperson for the Québec Online Gaming Coalition - representing

operators such as FanDuel, DraftKings and PointsBet - argued: “It’s ironic because, over the past few years, our current government has had a tendency to compare a lot of what’s happening in Québec to Ontario. We feel that this would be a really good example of something they should compare themselves to because right now we’re really behind compared to where they are.”

However, Brewer does not foresee any movement in Québec in the near future, explaining that any activity or potential activity there any time soon is “speculation”.

Indeed, that appears to be the case across the rest of Canada as Brewer explains that, simply, the political will nationwide appears to be against regulating gaming, with policymakers satisfied with the performance of the provincial lottery corporations which are providing online games to consumers in their jurisdictions.

Concluding her ‘state of the nation’ assessment, Brewer observed: “For any other Canadian province, there’s just speculation. Remember, the decision to open a legal and regulated igaming market is a political one. British Columbia heads to the polls in October and there’s no indication that the province is considering a move before the election. Regarding Québec, currently, there is no political interest.

“As with most things in life, time will tell.”

CanadianGamingBusiness.com 41 FEATURE

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Justin Cosnett, Chief Product Officer at Continent 8 Technologies, shares insight on why disaster recovery is now mission critical for operators and suppliers in North America and beyond.

CanadianGamingBusiness.com 43 SECURITY
Even though the numbers weren’t huge and headline-grabbing, the fire is building

The global online gambling industry is one of the most attacked sectors in terms of cyber crime. For most organizations, this means it’s a case of when, not if, cyber-criminals will seek to exploit vulnerabilities within their businesses.

Even the biggest operators and suppliers are not immune. That’s why disaster recovery (DR) is now not just a key aspect of infrastructure planning

and set-up for natural disasters and technical failures, but also cyber risks with malware, data corruption, and denial of service attacks.

Why disaster recovery and backup is important

Organizations need to be able to regain access to systems, networks, and secure data in the event of a successful cyber attack or an unexpected

circumstance such as a natural disaster, equipment failure, human error or even a power cut. This is particularly true for online-only businesses, like igaming.

Loss of access means businesses can no longer run the services, products and experiences they offer. This can negatively impact the organization, from reputational damage and regulatory non-compliance to revenue loss and potential liability.

44   Spring 2024 SECURITY

This makes being able to regain access without delay critical. Such is the importance of DR that a growing number of regulators now set specific requirements for licenced operators and suppliers to have disaster recovery and backup capabilities in place.

To provide a relevant North American example – West Virginia has detailed backup data and equipment requirements for licensed operators that must be adhered to, to maintain or obtain a license. To facilitate these requirements, Continent 8 has a dual co-location, dual public cloud and inclusive site-to-site backup solution, allowing customers to choose the right services for their specific needs.

While regulations can set out what organizations need to do, it’s still important to undertake a business impact assessment to understand the true cost of a disaster to the business. As part of this, you need to determine the necessary recovery point objective and recovery time objective.

This should form part of a wider Disaster Recovery Program, which then feeds into the Business Continuity Plan.

DR programs and what to consider

These are the key blocks that should form the foundation of your disaster recovery planning and program:

• Recovery requirements

• Risk mitigation and recovery strategies

• Recovery solutions and plan development

• Plan exercises and staff training and awareness

• Program maintenance and management

• Program development and governance

Common challenges

One of the biggest challenges for organizations is aligning disaster recovery planning efforts with business-defined requirements and specific outcomes.

Another area that businesses can get stuck is the finer details. We sometimes see minimal and missing details in DR plan documentation, which combined with a lack of properly managed, centralized access, limits the successful execution of DR plans.

Finally, the poor or limited exercising of DR plans inhibits the ability of infrastructure and operations leaders to understand how their organization can most effectively recover and restore operations within the required recovery time objectives.

What a solid disaster recovery plan looks like

For disaster recovery to be successful, it’s important to ensure planning aligns with business continuity management. This can be done by sharpening the scope and planning for loss categories, rather than focusing on specific event triggers.

Documentation for the DR plan/program can be improved by outlining all key procedures, roles, responsibilities and recovery strategies and by centrally storing DR plans so they are easy to access by those who need to access them.

Finally, regularly conduct DR exercises, review recovery strategies against updated business impact analysis results and assess opportunities to expand capabilities and scope.

This is where Continent 8 Technologies can provide support, too. Over the past 12 months, we have significantly expanded our DR offering, especially across North America. We have launched additional site service capabilities in the states of Iowa, Illinois, Kansas, Louisiana and West Virginia, as well as Puerto Rico. We have also added inclusive cyber and data backup services to our public cloud offerings, creating a managed service capability customers can consume.

Data and operational recovery is now such an important consideration for infrastructure planning, and many regulators now expect licensed operators and suppliers to deliver resilient and reliable services to customers and partners.

Our expanded disaster recovery offering provides this to the highest possible level, offering business continuity and systems security while supporting compliance regulation.

Ultimately, Continent 8 allows operators and suppliers to focus on running their businesses while ensuring their infrastructure has the disaster recovery capabilities required by regulators and that also makes sure it’s “business as usual” in the event disaster strikes.

CanadianGamingBusiness.com 45 SECURITY

Tackling the payment landscape

Payments are essential in making the industry run smoothly but it is often an underappreciated just how essential it is to make the experience seamless for players. BET99 CEO Jared Beber tells CGB all about its payment strategy.

When a company works to set itself apart from its competition, product is the obvious factor to look at, as this ultimately what wins the customer over. However, there are other factors at play, and payments are a vital element to consider.

Two years after the launch of Canada’s only open regulated betting market in Ontario, the sector has become a vibrant but highly competitive one.

Reflecting on Onatrio’s market makeup and demographics, Beber observes that debit and credit cards continue to be the most widely adopted payment methods in the province - a trend consistent with much of North America and Western European markets.

However, he asserts that in spite of this, “payment localization and payment choice are

critical factors in ensuring a strong customer experience”. The payments journey as a critical element of the customer journey cannot be overstated.

“Payment methods are crucial to any operator’s goal of starting new customer relationships,” Beber continues. “Streamlined payouts play a pivotal role and in many instances can trump other factors including promotions, sponsorships, and brand ambassadors.”

Although Ontario and other western markets have not adopted alternative payment methods (APMs) as much as South American and African markets - for example, Brazil’s nationwide Pix instant payments platform, which will soon become important to the many operators eyeing up expansion in that emerging market - appetite for such technologies is hardly non-existent.

46   Spring 2024 PAYMENTS

Ontario, and Canada as a whole in fact, is home to a vibrant fintech sector, with a diverse range of companies working to make their mark on payments innovation in areas including APMs, Open Banking, Artificial Intelligence (AI), blockchain and cryptocurrency, among others.

Research has shown that around half of Canadian bettors are interested in the possibility of using cryptocurrencies as a method of gambling payments, despite Bitcoin ownership in the country actually falling this year.

From BET99’s position as a prominent operator in Ontario, consumer interest in new and innovative means of payment is not in short supply, despite an overall preference for credit and debit cards.

“While debit/credit cards continue to dominate in Ontario, players’ appetite for APMs continue to grow,” Beber remarks.

As Ontario’s igaming sector continues to mature and develop, Beber and BET99 expect further innovation to continue supporting player’s appetite for APMs. This could be shaped by a number of trends the operator has observed in the market.

Firstly, similarly to consumers in many other markets, Ontarians have been adopting mobile payments methods such as Google Pay and Apple Pay at a steady pace, favouring the ease and convenience these methods bring.

Beber added that increasing usage of these mobile methods is “enabling fast one-touch payments using biometrics like fingerprints or facial recognition on compatible devices”.

Meanwhile, just because credit and debit cards are Ontarians preferred means of transaction, it hardly means that this area is standing still. Innovation in card payments is still a possibility.

CanadianGamingBusiness.com 47 PAYMENTS

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Payment localization and payment choice are critical

The potential of biometric logins via fingerprints or facial recognition technology is one innovation BET99 sees as an innovation driver for Ontario payments, similar to the company’s observation around mobile payments.

In addition, virtual single use card numbers for security is another area the operator envisions as driving card technology forward in the province, whilst push-prompt validations for larger purchases is also an area for the betting industry to take note of.

Perhaps most significantly though is Beber’s observation of the use of AI, particularly for fraud monitoring and risk analysis in real time. AI development has skyrocketed in recent years and various industries have been noting the technology’s potential.

Gambling has been no exception to this. AI has been utilised across a number of sectors, notably finance, for risk management purposes. As betting is also an industry with a number of risks and challenges, it is hardly a stretch to predict that the tech will take on a more important role in the operator payments journey.

“Leveraging tools such as AI fraud monitoring and risk analysis in real time aids in identification and elimination of potential fraudulent behaviour in the payments landscape,” Beber explained.

This is an area SBC’s Payment Expert is hardly unfamiliar with. Having spoken with numerous AI specialists over the years, it is clear that while the technology still has some elements that need ironing

out, its potential for fraud prevention is great for operators across various markets.

Ontario as a province is no stranger to AI, either. As noted above, the province has a strong local fintech scene, and this has been recognised by leading tech giants such as Apple, which acquired Waterloo-based startup DarwinAI back in March this year.

Against this backdrop, keeping up to speed with paytech developments is an important task.

“We pride ourselves on keeping a close finger on the pulse through deep personal relationships, attending numerous seminars, and reading non stop,” Beber says.

Lastly, whilst on the topic of AI, it is important to note the discussion around the tech’s use for responsible gambling purposes. Much has been made of how automation can be leveraged to assess player behaviour, for example, for signs of problem gambling.

As BET99’s conversation with CGB came to a close, the firm’s CEO highlighted the emphasis the Toronto sportsbook places on player protection as part of the wider customer payments journey.

“At BET99, our focus is on preserving the longevity of the industry,” he outlines. “In order to do this, responsible gaming and player protection is at the core of our DNA. Regardless of seniority, role, or department, all employees undergo robust and ongoing training on RG, AML, and player protection.

“A responsible player is a loyal player, and the team is laser focused on leveraging both technology and professional judgement to identify problem gambling patterns, resulting in quick intervention.

“Measures such as self exclusion programs and extensive limit setting features provide players tools to remain in control and gamble responsibly. We are also currently exploring a variety of AI powered tools to enable our engagement team to identify issues even more quickly and tailor their interventions to individual player profiles.”

CanadianGamingBusiness.com 49
PAYMENTS

Business fantasy meets economic reality

Esports betting may have enjoyed a meteoric rise during the pandemic, but Rivalry CEO Steven Salz explains why the vertical is “rightsizing” amid macroeconomic headwinds.

INTERVIEW
50   Spring 2024

Esports experienced a monumental boom in 2020 as, with the pandemic restrictions limiting people’s options, viewership and engagement went through the roof.

The industry has built on from this, reporting ‘uninterrupted growth’ from that point forward. However, Salx explained that as always “it is a tale of two stories”.

This year has already emphasised the industry’s growth as Blast’s debut Rainbow Six Siege tournament in Brazil, Six Invitational 2024, became the most viewed R6 event ever, peaking at 521,349 viewers.

For Rivalry, a sports betting and media company that focuses on esports, these impressive figures are key to the firm’s founding thesis. Salz explained that titles and games’ viewership will always fluctuate, therefore it will benefit by focusing on a model that relies on the performance of the industry.

Salz said: “We were really confident that esports viewership will always go up and we were really confident that as people watch more of a competitive thing, you’re going to be interested in betting on that thing. But we didn’t want to bet on which titles are going to be popular.”

It was this logical game plan that has seen Rivalry operate on the more fortunate side of the two tales.

Despite viewing figures steadily increasing there have been some organisations and teams in the esports landscape that have struggled, which has become more common recently and has even led to the birth of the term ‘esports winter’.

Following the economic struggles of some of these organisations, which Salz said is not uncommon in the sector, a lot of teams have announced plans to downsize, a phrase that the CEO shunned.

“I think it’s a rightsizing rather than a downsizing, I feel like a downsizing implies cost cutting measures because something’s wrong and you’ve had to batten down the hatches. I think rightsizing is better, calibrating your business to the way things have always actually been,” Salz added.

Coming out of the ‘esports winter’, Salz said that Rivalry has not seen a ‘huge’ impact. This is down to competitive players self organising and fans of competitive esports not being influenced heavily by how much money players are making as long as there is content to watch, support and therefore bet on.

In fact, with the boom happening in 2020 a lot of their supporters have matured, leading to many of them having more money to bet with.

Salz said: “The way that betting benefits from the increased commercial viability, it comes from average viewers getting older with more spending power combined with viewership improving.

“It’s just natural, with more people watching with more money, the more likely they are to bet. It is just a natural relationship between watching competitive sport and betting on competitive sport.”

On the increased commercial viability in the sector, Salz noted that “we’ve always seen esports and gaming as the ultimate top funnel to a demographic of consumer, not the be-all and endall”, a mistake that some companies have made.

Salz said: “The mistake that all these people have made, the one that everyone’s been making for five years now is they look at esports as the end-all be-all opportunity, which has always been a mistake because esports is predominantly a marketing spend of the game publishers. It’s not the same as a sports league.”

CanadianGamingBusiness.com 51 INTERVIEW
I think it’s a rightsizing rather than a downsizing

Gaming is one of the most viewed content categories on the internet. It’s also the most frequently uploaded category on YouTube, with the longest average views as a percentage of total hours watched on the platform and is the most frequented content on essentially every social media platform.

Salz continued: “In order to tap into that audience you can use gaming and esports as an access point to a demographic of consumer and that’s how Rivalry has always looked at it, which is why our business is very diversified.”

“Is the esports business improving over time, I don’t know, maybe not. Is it getting better as an acquisition funnel to a demographic? Yes, it is getting better,” Salz added.

So how does Rivalry get its brand in front of its target demographic? Well, Salz explained that the company has never actually thought “let’s get esports fans to play casino”, and instead has seen esports as the best way to get in front of under 30s on the internet.

However, marketing a brand in the esports space is not an easy task. Rivalry, unlike most traditional betting brands, doesn’t use affiliates, bar a small subset. Instead it uses influencers and content creators.

This is a marketing strategy that has been used by most sectors in recent years, but not always used correctly. Salz said that a lot of brands view influencers as billboards, paying creators to show a logo or try a product on screen.

Rivalry’s “secret sauce”, as Salz described it, takes the strategy to a whole new level, taking inspiration from ‘world class’ brands such as Red Bull.

“Red Bull has been really successful in adrenaline sports. They’ve been able to own an F1 team, because it’s an aspirational thing they’ve created and it’s in your subconscious who they are and what they represent.

“The way that we creatively enable influencers and bring value to their audience is unlike any other brand. We’re not just like a logo and a referral code.

“When partners work with us the pitch isn’t “here’s a bunch of money to do four tweets”. It is by the end of this partnership the average concurrent viewership on your stream will be higher.”

Looking forward, Salz believes there will be more rightsizing in the industry. He concluded: “The economic reality of the space and the business fantasy that has existed are now aligning.”

52   Spring 2024
INTERVIEW

POST-C218:

Is gambling becoming safer?

Three years after the landmark legislation unlocked legal single event sports wagering to Canadian bettors, CGB examines how Bill-C218 has changed the industry landscape with regards to player protection.

CanadianGamingBusiness.com 53 FEATURE

By opening its doors to legalized gaming, Canada took a significant step towards strengthening its economy and unlocking more opportunities for job seekers. The passing of landmark legislation three years ago gave crown corporations the power to offer single event sports wagering, offering a competitive boost in a battle with offshore operators.

Bill C-218, a combination of numbers and letters that to many might appear unassuming. However, to those familiar and involved with Canada’s gambling scene it represents the holy grail of their pursuit, which can be traced all the way back to 2012 when the idea of overturning the longstanding restriction on legal single-event sports betting in Canada was beginning to pick up pace.

After multiple attempts, in August 2021 the Bill officially received royal assent, amending the Criminal Code thanks to the overwhelming backing maintained throughout its journey across Ottawa’s political halls.

Lifting the blockade on single-event sports betting has been a shot in the arm for the industry, with experts predicting a market value in the range of $50bn over the next 10 years.

This, of course, did not come at the expense of player safety. Stringent regulatory controls could be seen being self-imposed across the board by the provinces themselves. In British Columbia, there was a swift reaction to amend its Gambling Control Act and introduce age and betting amount limits for punters. Soon after, Ontario implemented even stricter limits.

And so step by step, over the last three years we’ve witnessed the steady rise of activity in Canada that is no doubt on its way to becoming a significant influence on the global gambling map. Despite the increase in the prevalence of gambling, a key priority for the indsutry is to protect Canadian players.

Because before Bill C-218 and the control it gave to provinces over gambling proceeds, an onslaught of offshore gambling operators had been earning millions of dollars that could have been used to

strengthen its healthcare, community projects and public infrastructure.

Not only that, players were preyed upon by being given access to round-the-clock gambling offerings with seemingly no control over player spending. Even after Bill C-218’s introduction, offshore activity remained so rampant that it forced Canadian lotteries to band together in an effort to counteract it.

In 2022, British Columbia Lottery Corporation, the Alberta Gaming and Liquor Commission, Loto-Quebec, the Atlantic Lottery, and the Manitoba Liquor and Lotteries Corporation (MLLC) formed a coalition aimed at protecting players and keeping them away from those platforms where safety and responsible gaming measures are not guaranteed.

In Manitoba particularly, MLLC’s educational initiative is being supported by the province’s licensing body - the Liquor, Gaming and Cannabis Authority of Manitoba (LGCA) - despite it not being part of the coalition.

54   Spring 2024 FEATURE
We will continue to educate adult Manitobans about strategies for safer participation

The LGCA’s ‘Know My Limits’ platform, which educates players on being in control of liquor, cannabis and gaming, has now been expanded to cover sports betting after 10 years of activity.

“More than 10 years ago, we developed our ‘Know My Limits’ platform to inform Manitobans about national guidelines for lowering risk when participating in or consuming products offered by the industries that we regulate,” Lisa Hansen, Communications Analyst at the LGCA told CGB.

“The education we provide is researchbased and neutral with the goal of enabling the public to make informed decisions when consuming liquor or cannabis, or when gambling.”

Hansen also highlighted the work that the LGCA is putting in to reflect Canada’s changing gambling landscape.

“Earlier ‘Know My Gambling Limits’ campaigns shared messages to encourage bettors to think about their play before they gamble by setting limits on time, money and number of games played.

“With Canada’s legalisation of single-event sports betting significantly changing the betting landscape, the LGCA saw the opportunity to expand the 2024 Know My Gambling Limits’ content to relate to sports betting, specifically in the online context.

“The campaign provides lower-risk betting strategies and dispels some of the myths bettors may believe about sports betting. Through focus groups, the LGCA found that many Manitoba bettors place bets on sports betting platforms that are not licensed by the LGCA, such as those based in other provinces or offshore.

“The LGCA’s campaign informs Manitoba adults that the safer choice

is to use Manitoba-licensed websites because of the regulatory requirements in place for gaming integrity, fairness, and accurate payout of winnings.”

Change to: According to Hansen, some of the main risks that unregulated platforms hide for players include the lack of firewalls or data encryption, leaving players at risk of having personal information stolen.

The LGCA also warns players of offshore sites they could be the victims of fraud, as well as alerting consumers there are usually no assurances of their winnings being paid out in full or at all.

That is why Hansen was adamant in saying that Manitoba players can rest assured that the LGCA’s licensing process “thoroughly checks applicants for their suitability to hold a licence” before issuing a licence. Currently, all commercial gambling in Manitoba is managed by the MLLC as the only agent appointed by the Province in Manitoba to do so.

While the Know My Limits campaign continues for 2024, the LGCA is committed to campaign for safer gambling in Manitoba by diluting the influence of unlicensed operators through education.

“While the LGCA cannot control how, or to whom, unregulated operators choose to market their platforms, we can educate adult Manitobans on how to identify unregulated platforms and the risks involved with using them, so they can make responsible gambling decisions to avoid any potential harm.

“As part of the LGCA’s ongoing social responsibility mandate, we will continue to educate adult Manitobans about strategies for safer participation in the industries we regulate,” Hansen concluded.

CanadianGamingBusiness.com 55 FEATURE

Pay-by-Bank: Bringing Innovation To Online Gaming

Dave Roe, Chief Operating Officer at Paramount Commerce, explains why Pay-by-Bank payment methods are on the rise and how Canadian operators can improve their offering using such platforms.

Canada’s igaming market is seeing rapid change due to technological advancements and evolving consumer needs. New ways to interact with operators such as live betting and simplified player verification are gaining momentum. Plus, operators are focusing on mitigating risk and preventing fraudulent transactions to improve bottomline results. Pay-by-bank plays a critical role in each of these areas offering players a smoother and safer gaming experience.

What is Pay-by-bank? Payment methods such as e-wallets, credit cards, and Interac payments are prevalent in Canada. Pay-by-bank has gained significant traction due to its widespread acceptance and the speed and security it offers across various industries.

In sectors such as igaming and sports betting, where security and ubiquity are

important, pay-by-bank methods are highly favoured. In Canada, InteraceTransfer stands out as a top real-time payment solution, with nine out of 10 Canadians using the payment method.

The Need For Instant Deposits In Live Betting:

Live betting has transformed the sports betting experience by allowing players to place bets on sporting events in real-time. This experience aims to enhance player engagement and requires robust infrastructure and real-time data integration to ensure accurate odds. A key component of live betting is the ability for consumers to pay within that in-game sports betting experience, where a player does not have to miss on the live odds.

To address this need, Paramount Commerce has created a unique deposit feature available with its Instant Bank

Transfer solution. With One-Click Repeat Deposits and In-game deposits, Instant Bank Transfer allows players to add funds to their igaming and sports betting accounts with speed and security, and most importantly, without interrupting their betting flow. Also, real-time payments play a pivotal role in the live betting scene, as players also seek instant access to their winnings. For operators aiming to develop loyalty among both new and existing customers, providing instant gratification through solutions like Interac offered by Paramount Commerce, presents a huge opportunity to support live betting.

Bank Connections Simplify Player Verification:

The integrity of Canada’s igaming and sports betting industry relies on robust player verification. Strict KYC protocols establish users’

56   Spring 2024 PAYMENTS

Paramount Commerce is the first payment provider to offer machine learning for risk management

identities and prevent underage gambling and fraud. Methods such as biometric verification, document authentication, and geolocation tracking are employed to verify players’ identities and locations.

However, the player verification requirements currently in place can be lengthy and lead to player dissatisfaction. Operators can partner with payment partners such as Paramount Commerce to improve the verification and onboarding experience. Paramount Commerce leverages its strong banking connections and supplies identity data when consumers log in to their online banking through open banking data. Financial data can be separated from the payment, making it easier for the player to sign up and make their first deposit.

Preventing Fraud With Machine Learning & AI:

Combating fraud is a top priority for stakeholders in Canada’s igaming sector. Fraudulent activities such as money laundering, identity theft, and chargebacks pose significant risks to operators and the integrity of the industry. Advanced fraud detection and monitoring systems help identify suspicious patterns and prevent fraudulent transactions, thereby enhancing security.

Paramount Commerce is the first payment provider to offer machine learning for risk management. This advanced technology swiftly detects and addresses potential threats with a high level of accuracy, protecting operators from financial losses. Paramount Commerce’s machine learning model has a clear advantage:

it has more than 20 years of experience handling payments in Canada, giving it valuable data. Thanks to its adaptable nature, machine learning enables Paramount Commerce to stay ahead of emerging threats, guaranteeing a secure environment for numerous transactions.

Pay-by-bank will significantly enhance various aspects of online gaming, including live betting, player verification, and fraud prevention. Embracing these features through pay-by- bank payments will promote a robust and enduring igaming and sports betting landscape. Additionally, ongoing collaboration among regulators, operators, and technology providers is crucial for addressing challenges and discovering new avenues for growth and innovation in the industry.

CanadianGamingBusiness.com 57 PAYMENTS

Gaining ground in the Great White North

Andrzej Hyla, Chief Commercial Officer at Wazdan, explains how the online casino game developer is bringing its European expertise to the Canadian market to bring new experiences to players.

The igaming industry in Canada is experiencing a period of significant growth, driven by increasing internet penetration, favourable regulatory changes, and a growing appetite for online gaming experiences. Positioned at the forefront of online gaming in Canada is Wazdan, applying its expertise in European game development to this exciting frontier.

The

Canadian igaming landscape: a thriving market with unique nuances

The Canadian igaming market is vast and rapidly growing, projected to reach a value of US$4.19bn in 2024. However, the Canadian market isn’t a homogenous entity. There are distinct differences

between it and the European market. Player demographics show that the Canadian market skews slightly younger than its European counterpart and cultural nuances present a unique landscape that demands a distinct approach to game design, with different provinces having their own preference such as Quebec with French language games. Our approach involves leveraging insights from global trends while also considering local market dynamics.

Choosing Ontario as our entry point provided advantages akin to European jurisdictions like Malta or the UK. However, the dominance of state monopolies in provinces with online casinos, such as British Columbia, Quebec, and Alberta, poses challenges for companies accustomed to more liberal markets.

58   Spring 2024
ONLINE CASINO

The Canadian market isn’t a homogenous entity

Localization focus and tailored experiences for discerning players

Localization is key to appealing to this diverse audience. Wazdan offers its games in multiple languages, including French, to ensure a seamless player experience. We also adopt a flexible approach to game selection for the Canadian market. Our meticulous process considers various factors such as thematic relevance. We select themes that resonate with Canadian players, seen in wildlife-inspired titles like Mighty Wild™: Panther and Mighty Fish™: Blue Marlin.

Game mechanics are key in Canada like anywhere else and Canadian players appreciate innovative features like our Collect to Infinity™ and Hold the Jackpot™ mechanics, which provide thrills and keep gameplay exciting.

Understanding the importance of variety, we offer a diverse portfolio catering to different preferences across provinces. Freedom of Choice™, a suite of customization options, empowers players to tailor their gameplay further in terms of volatility, speed and energy levels, enhancing accessibility in our portfolio.

Player preferences: unveiling the Canadian gaming mindset

Understanding player preferences is paramount to success. Wazdan employs various methodologies to gain insights. We leverage data to identify regional trends and player behaviour patterns, actively seeking player feedback to stay abreast of industry trends and understand evolving tastes.

As the market continues to expand, developers must remain agile in curating offerings that capture the attention of Canadian players. There’s the math behind the thrill. A prime example of our data-driven approach is the development of 12 Coins™ Grand Gold Edition. This enhanced version of the popular 9 Coins™ and 12 Coins™ slots merges proven game maths with playerfavourite features like Cash Infinity™ and Hold the Jackpot™, generating a whopping 615% more bets than its numerical predecessor.

Regional Emphasis: A Commitment to Quebec and Ontario

Wazdan has a strategic presence in both Quebec and Ontario, understanding the characteristics of each market.

In Quebec exists a thriving market with specific regulatory requirements. Wazdan has fostered a strong partnership with LotoQuébec, ensuring compliance and delivering games that resonate with Quebecois players.

Ontario’s recent regulatory shift has presented a vast new landscape. Wazdan has established strategic partnerships with major operators including BetMGM Canada, Rush Street Interactive, Betty Gaming CA, Caesars Sportsbook and Casino, DraftKings Casino, LeoVegas, and SkillOnNet. We also collaborate with aggregators such as Light & Wonder to create a powerful synergy, ensuring our games reach a wide audience and deliver exceptional experiences.

Wazdan – a serious player and an earning partner in Canadian igaming

Wazdan considers itself to be more than just a game developer; we’re a trusted partner in the Canadian industry. Driven by innovation, we develop games tailored to the specific preferences of Canadian players. Our deep understanding of the market, strategic partnerships and unwavering commitment to compliance position us as a leader in crossborder gaming. We don’t bet on success – we engineer it.

CanadianGamingBusiness.com 59
ONLINE CASINO

BEATING the ILLEGAL BOOKIES

60   Spring 2024 INTERVIEW

While provincial lottery corps offer online sports betting and gaming options nationwide, offshore and illegal operators still target Canadian consumers. Will Hill, Executive Director at Canadian Lottery Coalition, tells CGB why the lotteries are fighting back.

Has the Canadian industry adequately mobilised itself to sufficiently protect players from illegal operators after the sports betting legislation of 2021?

The Canadian Lottery Coalition was launched in 2022. Five provincial gaming corporations moved to join forces, with player protection and a safe online gambling landscape for Canadians top of mind.

To best understand the issue, it’s important to know that commercial gambling in Canada is illegal unless it is controlled by the various provincial governments. What this means is the members of our coalition carry with them the sole authority and responsibility to operate the only legal online gaming and sports betting platform in their respective home provinces.

And yet, our members are still forced to contend daily with hundreds of illegal online gambling operators, their unregulated websites and the misleading advertising which has proliferated along with it.

For many years, provincial lottery corporations fought this uphill battle largely on their own. They have since realized there is strength to be had in numbers and are already seeing results from their combined efforts.

It is now nearly two years since a coalition of lotteries launched an advertising campaign to beat the illegal market - how has this been received and has it worked?

It’s important to know the creation of the Canadian Lottery Coalition was for advocacy purposes, though combating misleading advertising with our own advertising campaign was one of the tools we utilized. The Coalition has been working to raise public awareness and identify actions that can be taken together with federal lawmakers, provincial regulators and other key stakeholders to properly protect Canadians, shut out illegal operators from unauthorized wagering and halt misleading advertising.

Our members are still forced to contend daily with hundreds of illegal online gambling operators
CanadianGamingBusiness.com 61 INTERVIEW

WITH US!

There remains much work to be done

There remains much work to be done. In particular, we recognize there is a significant public awareness problem, especially as these operators continue to buy advertising opportunities in provinces outside of Ontario where they are not legally allowed to solicit players. With the saturation of illegal operators filling the commercial breaks of our sports broadcasts, our social media feeds, and more, the perception is these sites are legal in other provinces when the reality is they are not.

Certain members of our coalition – LotoQuébec and BCLC – both ran well-received campaigns in their own home provinces in recent years, warning of the dangers of illegal online gambling websites.

Can you put into perspective what is the financial scale of the offshore betting problem in Canada, and how does it interfere with the goal of RG policies?

Like other global jurisdictions, illegal online gambling in Canada is a real and significant problem that’s continuing to grow. Industry research points to a 15% compound annual growth rate in the size of the Canadian illegal online gaming market between 2019 and 2023. In each of those years, hundreds of millions of dollars were siphoned away from this country to the benefit of illegal operators located offshore.

Canada’s provincial lottery corporations conduct and manage commercial gambling on behalf of their provinces to return 100% of the profits to their respective governments. So those dollars could have been directed

instead to support health care, education and other community programs and services.

The problems with illegal online gambling in Canada go far beyond recurring annual tax revenue losses and work to include matters like player health and the increased risk of financial crime, such as fraud or money laundering. Illegal operators aren’t accountable to offer gambling in a socially responsible manner with typical responsible gambling features, like effective age-of-majority controls. And in the absence of any financial data reporting to regulators or oversight bodies like FINTRAC, the risks of fraud, money laundering, tax evasion and the misdirection of funds are all significantly increased.

By contrast, the members of our coalition each give players a website they can trust. They adhere to all federal and provincial laws, meet stringent standards for technical integrity and offer robust player health safeguards, providing support and resources that help players to make healthy, informed play decisions.

Given the long history of sports betting with unlicensed operators prior to 2021, would you say that Canadians are more susceptible to undermining the problem compared to players in markets with longer history of regulation?

If Canadian players are susceptible to anything, I would say, these days, it’s a general sense of confusion about what’s legal and what’s not. For instance, Ipsos found that most Canadians simply don’t know or don’t

CanadianGamingBusiness.com 63 INTERVIEW

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understand which types of companies are legally permitted to operate online gambling in their province. Some thought it was private betting companies, while others believed it was both the government and private operators. To reiterate, the only legal online gaming and sports betting platform in all but one Canadian province is the one run by the provincial lottery corporation.

A contributing factor to this confusion and the source of a rising public backlash is the recent glut of advertising, much of it misleading and intrusive. That same research firm I referenced a moment ago also shared its findings on a general sense of Canadian fatigue from gambling advertising. Many of these advertisements are broadcast nationally and tend to blur the line between provincially regulated gaming sites and illegal operators.

Is there an argument to be made that gambling advertising should be scaled back altogether in Canada, much like it is being done in the UK?

It’s important for players in our respective member jurisdictions to understand that, quite unlike gambling websites operating illegally in these provinces, advertisements for our products and online platforms must adhere to strict gambling advertising standards set out by designate provincial regulators.

Designed to support marketing that promotes healthy, positive play behaviours, these advertising standards have robust and specific requirements for each advertisement. They mandate advertising and marketing for gambling must be presented in a responsible manner and enhance public awareness of both responsible gambling issues and services. Further, they must not encourage people to play beyond their means, must not present gambling as an alternative to employment, and must not imply that skill and experience can ensure a positive outcome. The use of materials, celebrities or endorsers that would be considered promoting gambling to minors is prohibited.

World Lottery Association.

What support have you seen so far on a federal level to prevent online sports betting with offshore operators?

I mentioned we’ve seen a rising public backlash recently to a glut of gambling advertising. This has had some negative consequences on the broader industry. However, one positive is that it’s heightened awareness, brought some entirely new eyes and a determined focus to bear on the issue of illegal gambling. When we’ve engaged with leaders in Ottawa, they have welcomed the chance to meet and learn more, have listened carefully, and asked smart and incisive questions. It’s been our observation that they recognize and acknowledge illegal online gambling as a growing problem.

CanadianGamingBusiness.com 65
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