PointsBet Sets Sights on Alberta After U.S. Departure

PointsBet which recently suspended its U.S. business is now eyeing Canadian expansion with Alberta being a target territory for the gambling leader. It is believed that the western jurisdiction could be next to debut a model similar to the one of Ontario, where private sportsbooks are allowed to legally operate after being licensed by the province’s regulators.

Ontario is the only province at the time to offer online gambling from third-party operators, after in April 2022, the jurisdiction opened up its iGaming sector for private brands. Despite its infant age, the sector is already bringing billions in wagers and millions of dollars in revenue. The launch of its market started talks that other provinces could follow the online gaming example.

Alberta is a Point of Interest

Earlier this year, Alberta saw the return of the United Conservative Party to power which started off rumours that the Western province could adopt an Ontario-like model. If this comes to fruition, then the total addressable market in Canada for companies such as PointsBet will expand outside of Ontario. This comes as tremendous news for the company’s CEO Sam Swanell.

In a recent statement, he said that the company believes that Alberta could be added to the TAM in the second half of 2024, transforming a CA$2-billion market to a CA$2.5-billion. Mr. Swanell also noted that launching a similar market in the province will not affect the company’s finances, as its marketing in Ontario already bleeds into the Western province.

The CEO’s comments arrive after the gambling company decided to pull out on its U.S. operations after it sold its U.S. division to Fanatics for approximately US$225 million. The company which was part of New York’s mobile sports betting market, will not need to transfer licenses to Fanatics, in order for the latter to begin legal operations in the Empire State.

Now, PointsBet is looking into turning its other business toward profitability, including launching in more provincial markets in Canada, such as Alberta. Mr. Swanell commented that the firm expects revenue from its Canadian operations to grow higher, hence, reducing its loss over the next year before the vertical generates positive EBITDA in the operator’s 2025 FY.

Current State of Alberta’s Gambling Scene

At the moment, Alberta runs with only one licensed online gambling platform, which is the government-owned PlayAlberta. But the province is also working on its own gaming market. Back at the end of 2021, the Alberta Gaming, Liquor and Cannabis Commission started a Request for Proposals for sports betting operators. However, no winners have been revealed.

Initial plans stated that the new sports wagering market was on schedule to launch prior to the end of 2022. However, this was not the case, and its start was delayed. A while back, Karin Campbell, AGLC’s manager of communications shared that the Crown continues to work through the negotiation process. There have been no further updates on the topic.

Source: Zochodne, Geoff “PointsBet CEO Sees Alberta Opportunity for Sports Betting Sites Amid U.S. Exit” Covers, August 31, 2023