CANADA CONTINUES TO DRAG ITS FEET WHEN IT COMES TO LAUNCH OF PRIVATELY-RUN SPORTSBOOKS

In Canada, where hockey is huge, the sport stands to be a big generator of revenue for legal sportsbooks. DraftKings is looking to partner with the NHL in order to conquer the marketplace for Canada sports betting. And, more sportsbooks are eyeing similar partnerships with hockey teams as Canada sports betting expands.

Canada is still more interested in hockey than its neighbor, the United States. So, the Canadian sports betting market when it comes to hockey is very important to potential operators. The NHL is set to be a huge revenue producer for online sportsbook operators and this would be across the country.

In the United States, American sports betting stalwart DraftKings has a strong partnership with the NHL. It has been speculated that DraftKings is looking to make the same partnership with the NHL when it comes to the Canadian market. But, there is some reason to be concerned about the hockey marketplace in Canada.

The provincial governments in Canada have been stalling when it comes to allowing privately-run sportsbooks to launch. This has caused some NHL teams to seek deals with offshore sportsbooks that are unregulated.

From coast-to-coast in the United States, legal sports betting continues to expand. And, the country has allowed online sportsbook operators to seek sponsorship as well as partnership deals with individual franchises as well as sports leagues. Similar deals have been sought and agreed upon when it comes to the marketplace for Canada sports betting.

The NHL is a coveted partner when it comes to these types of deals. Back in October, DraftKings made it clear it was looking for partnerships to help it conquer the Canadian market. This includes a potential deal with the NHL to become its official daily fantasy sports, sports betting, and iGaming partner.

This deal would grant access to the NHL assets for DraftKings. This also means official marks and logos. With this deal, DraftKings would be able to offer enhanced promotional efforts as well as NHL-themed sweepstakes. These efforts would take place through the regular hockey season, the Stanley Cup Playoffs and Stanley Cup Final, and NHL All-Star Weekend.

Content integrations across the NHL’s linear and digital media platforms will be an opportunity given to DraftKings as well. The CEO, chairman, and co-founder of DraftKings, Jason Robins, is excited for the chance for the company to partner with the NHL in the Canadian market.

Canada sports betting, especially Ontario sports betting, are hugely coveted markets that should be opening their doors to privately-run legal sportsbooks soon. Once the doors have opened, more deals between online sportsbook operators and NHL clubs should be expected.

However, the process to grant licenses to regulated privately-run online sportsbook operators has been slow going. So, offshore unregulated sportsbooks have been slipping through the cracks in the meantime. They have been able to grab promotional dollars and deals that would be going to regulated and legal sportsbooks otherwise.

In a surprising and confusing development, the Ottawa Senators from the NHL have reached an agreement with an offshore sportsbook. This offshore sportsbook will be the team’s official helmet sponsor. Many feel this move is counter-productive as the NHL is already trying to reach deals with licensed and regulated sportsbooks.

However, this is not an isolated incident. The CFL and Canadian Premier League have both seen sponsorship deals crop up this past year with offshore sportsbooks.

At this moment, legal and regulated sportsbook operators are following the rules to receive licenses to launch in Canada. But, these companies are getting tired of the loss of potential revenue as they wait. The Vice President, Legal, Compliance & People for PointsBet Canada, Chantal Cipriano has indicated that the Canadian process has been difficult for operators.

Legal sportsbook operators are hoping to be able to launch regulated books in Canada in early 2022. At that time, as many as twenty online sportsbook operators could launch for Ontario sports betting alone.

Written by Allie Nelson, our US Sports Betting Industry Expert. You can learn more about our author's expertise here.