Last week, GAN Ltd. announced its financial results for the three-month period ending December 31, 2022, but also gave more details on why Coolbet Brands left Ontario's iGaming segment. 릴게임사이트 The company said it competes with promotional-friendly and familiar-looking sports betting sites in the province, and that it was one of the most competitive markets in the industry.
Ontario's segment for mobile sports betting and gambling is the first of its kind across Canada. An unlimited number of operators and sites can enter if they meet Ontario's Alcohol and Gaming Commission's stringent standards. Kulvet was one of the first operators to go online at the start of the market in April 2022, and is now the first to leave.
In mid-March 2023, Kulbet announced that it would leave the market and GAN would now focus on Latin American territories like Mexico instead of Ontario. Dermot Smurfit, CEO of GAN, said the company will stop operations or reduce investment without seeing a clear and fast path to profitability in markets outside of Latin America.
The CEO noted that the entrenched number of operators and the increased promotional environment do not indicate a path to profitability or provide the same kind of return as the company's investment in the LatAm segment. He said separate resources for Ontario sports betting will now flow to high-yield markets, generating cash flow.
In addition, Mr. Smurfit described the market as being driven by new entrants and brands that had previously operated in the gray sector, suffering from competitive, promotional obsession in the early months of its operation. He added that tons of American brands, combined with operators who have been there for quite some time, are pushing very aggressively towards the market.
GAN's CFO also explained that the operator had other challenges in the Ontario market. The official said it is possible for the company to violate the terms of the loan and accelerate the need for repayment. The brand is also negotiating with lenders over modifications to comply with the loan agreement, but nothing has been agreed yet.
Other operators are making inroads so far while Kulbet is exiting the market. In March 2023, the rival announced its entry into the market. The gambling brand has been licensed by the Alcohol and Gaming Commission of Ontario and is now a casino.The exe platform lets you debut iGaming products in Ontario. The operation will begin with eight casino games.
March also debuted Pariplay in collaboration with Caesars Sportsbook & Casino. Ontario people who register or have accounts on the iGaming platform can now enjoy the global title of a provider. These include Gods of Kemet, Spirit of Mustang, Wolf Riches, etc.
