A subsidiary of online gaming operator Betsson has acquired 28 percent of the shapes in Canadian start-up Slapshot Media for $2.4 million. CEO of Betsson, Pontus Lindwall said that the acquisition comes as part of Betsson’s strategy to partner locally and gain a position in regulated markets.
If you haven’t heard already, Canada will officially legalize sports betting for single events on August 27, 2021. Ontario presented regulations for online casinos, including online slots in Canada, and sports betting. Betsson offers a variety of calling options to increase the Slapshot Media Inc, a Canadian company’s, stake to 70% with a maximum price of $35 million.
Some of the major sportsbook brands that have publicly announced their interest to enter the Canadian market if allied to do so are TheScore Bet, DraftKings and FanDuel, with many more probably following them as soon as the ground is prepared.
Regulated sports betting is an industry that will most likely flourish in Canada. In general, this bill is a welcomed change to archaic gambling and sports betting laws which haven’t changed for decades. Canada should benefit from this move, which will certainly create new jobs, new revenue streams, and new partnerships.
Who is Slapshot Media and Why Is a Great Asset?
Slapshot is a company that creates localised sports content for Canadian market. They also provide managed services and marketing services for online gaming industry. With Betsson’s takeover, Slapshot will now work exclusively for this Swedish company, helping them with building the presence and preparing them for the upcoming regulatory work in Canada.
The investment is seen as a great initiative and right direction that will support growth in the North American market, more specifically Canada in this case, according to Pontus Lindwall, CEO of Betsson AB. Canadian market is seen as a great opportunity for many leading global operators, reasons being newly introduced regulation and high-income economy. Slapshot Media Inc’s experience and expertise together with local know-how will surely help Betsson to position itself properly and take full advantage of the upcoming regulations, being among first major operators to enter the market this way.
The Ripple Effect is Certain
Canadian spectator sports market earned a total revenue of $4 billion in 2019. Even though it’s nothing compared to USA’s $80 billion in 2020, it is still a large and profitable market for those involved in it. Even though Canadians don’t have the „sports betting culture“ as Europeans do, especially football (soccer) fans, this might change with time. Sports betting will surely gain popularity and slowly start to expand to areas of other industries. Governments will see more tax from it, and more jobs will be opened. With the expansion, authorities will have to ensure responsible betting is promoted, managed, and well communicated through available channels. Considering Europe has much longer sports betting history, and safe betting mechanisms and platforms already exist, Canada could use that know-how effectively. Finally, more and more operators will enter the Canadian market, which will contribute to the economy through individual betting revenue and partnerships with professional sports teams.