Canada is Losing Out On Sports Betting Spoils, Huge Potential Exists in the Market
By Space Coast Daily // December 6, 2018
It has come to be revealed that the Canadian government is losing out on opportunities in the sports betting world.
The past week, a multi-year strategic partnership between MGM Resorts International and the sports betting industry was signed. Announcing the details of the partnership last week, Gary Bettman, the NHL Commissioner stated that the sports betting realm would help them achieve better fan engagement through data and technology.
This was not the only deal signed last week. Another deal was signed between Caesars Entertainment and the company that owns the New Jersey Devils.
Speaking about the sports betting industry, Paul Burns, President & CEO of the Canadian Gaming Association indicated that the Canadian gaming industry was seeking to have similar partnerships too.
According to him, single-event sports betting is quite popular with Canadians and there is thus a huge potential in the industry. He also stated that an invitation was open for the NHL to take up the opportunities that were available in Canada.
When asked about the legal status of sports betting, Bettman noted that the law was expected to evolve and this would open up space for the industry to grow.
Huge Potential Exists in the Market
The American gaming market is already reaping huge benefits from the gaming industry. Reports from the American Gaming Association have shown that a total of $4.2 billion in terms of revenue is realized annually from the gaming industry.
That revenue streams from areas like ticket sales, media rights, merchandise sales, and regulated sports betting among other things. This revenue translates into big earnings for the government through taxes. The Canadian Criminal Code does not allow betting on a single event.
Instead, only two events at a time are allowed, even single-event betting is the most popular means of betting.
For a long time, casinos at the borders in Canada have tried to create sports betting centers as a means of attracting Americans.
Online casinos and other traditional means of sports betting almost had a chance in the market when the NDP sponsored a bill to open the field in 2012. Even though the bill was approved unanimously, it did not take effect due to the general election in 2015.
Since then though, progress has taken place in the United States with the removal of acts that restricted sports betting. This is why the sports leagues have taken up the opportunities in the market.
This same momentum is what Canada needs to tap into to get the sports betting realm going. There is already commendable research by the Canadian Gaming Association which shows that the industry has a potential of generating up to $10 billion.
In the United States, the progress that has been recorded in the past few months has been remarkable. New Jersey has already seen some $336 million placed as bets for the last couple of months since June 2018.
Jurisdictions in areas that have legalized betting are now planning on using the money realized to build infrastructure. It is definitely about time for Canada to act and reap the benefits of the industry.
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