DraftKings gains sports betting and igaming license in Ontario
Gaming giant becomes 12th operator to be approved for two-year license
DraftKings is poised to finally enter the burgeoning online betting market in Ontario, as the gaming giant officially had its license application approved by the Alcohol and Gaming Commission of Ontario (AGCO) on May 13.
While 37 applications on behalf of 26 operators have been approved by the AGCO, DraftKings is only the 12th to receive a two-year license.
DraftKings could go live as soon as the end of this month, as CFO Jason Park indicated on the company’s Q1 earnings call it was targeting a May launch.
As part of the licensing process, DraftKings – similar to its US online market leader FanDuel – will cease to offer DFS in Ontario, an announcement it made to its users on May 15.
With online sports betting and igaming formally launching in Ontario on April 4, DraftKings was notably absent from the starting line.
Other US- and Europe-based brands – including FanDuel, PointsBet, bet365, BetRivers, and theScore – have all been live in the province since day 1.
According to CEO Jason Robins, DraftKings didn’t consider it a priority to be among the first to launch on account of the well-established gray market in Ontario.
“Due to the presence of gray-market operators, many of which have been present in Ontario for several years, we do not believe that the timing of our launch will have any impact on the share we are able to achieve in that province,” Robins said on the Q1 earnings call.
While operators like Ontario-based theScore, as well as bet365 – one of the aforementioned longstanding gray-market operators – have jumped to an early lead in app downloads, according to data from Morgan Stanley, regulators have yet to circulate any formal revenue reports.