Through this investment, Betsson positions itself locally for the Canadian market, where regulation is imminent. Betsson will have various call options to scale up the shareholding to 70% in the company (for maximum price of approx. US$20 million) over time in line with introduction of provincial regulations for online gaming.
Slapshot Media is a Canadian company that specialises in creating localised sports content and provides marketing and managed services to the online gaming market in the country.
"This investment is another step forward in Betsson's continued ambitions to grow in the North American market. Canada represents a great opportunity for Betsson to increase the share of revenues from regulated markets,” comments Pontus Lindwall, CEO of Betsson.
“The local know-how and experience that the founders of Slapshot Media Inc possess will position Betsson well on the upcoming regulation of the Canadian market," adds Lindwall.
The Canadian online gambling market is undergoing significant changes through the introduction of provincial regulations. On June 23 this year, the Canadian Senate approved the Bill C-218, the Safe and Regulated Sports Betting Act, permitting provinces to regulate single-game sports betting in Canada.
Sports betting in Canada is currently limited to parlay offerings only. Ontario is the first province to introduce a licensing regime for online gambling that is expected to come into effect in 2022. The Ontario market alone is estimated to reach US$ 798 million by 2022.
Source: GMB
