Canada legalized single-game events betting on 27th August. Now, research firms are forecasting that the Canadian sports wagering market could generate $25.3 billion, $2.02 billion in revenue, and $404 million in tax receipt.
PlayCanada, the research firm behind the forecast, says that a $20.6 billion handle can be attained if provinces and territories adopt an open and competitive framework.
“It seems likely that most jurisdictions will instead offer sports betting through their provincial lottery corporations, allowing them to keep a proportionally large share of a much smaller pie.”
In the US, states that run sports betting through the lottery lag behind states with diverse landscapes. In Canada, some provinces will use the lottery way. But the Ontario region might take long before embracing the US way.
Ontario will adopt approaches that have worked best in the US in opening its sports betting market to competition from commercial sportsbook operators.
That will be an important move given that Ontario is home to 14.57 of the 37.59 Canadian residents. Ontario also has diverse professional teams from US NHL, NBA, and MLB leagues.
Ontario openness is attracting an array of gaming companies including, Penn National Gaming (NASDAQ: PENN). Earlier this month, PENN shelled $2 billion in cash and equity to acquire Toronto-based Score Media and Gaming (NASDAQ: SCR).
In that case, PENN will bolster its profile since Score Media and Gaming is a well-known wagering brand in Canada. Other gaming operators that seem like potential winners in Ontario include Caesars Entertainment (NASDAQ: CZR) and DraftKings (NASDAQ: DKNG).