DraftKings hit with last-minute Ontario launch snag
US sportsbook operator facing uphill battle in Canadian province as rivals capitalize on early market access
DraftKings has delayed its intended launch in Ontario, after not receiving clearance to begin operations in the Canadian province from the Alcohol and Gaming Commission of Ontario (AGCO) in time for the April 4 launch of the regulated market.
The US sportsbook and igaming operator had been expected to be one of the first operators to launch in the market, however it is understood AGCO has encountered delays in its processing of license applications.
Canadian media reports circulating just before the launch cited the potential for delays, something which AGCO later affirmed would occur due to the information and data requirements of the licensing process.
“Not every operator will be ready to launch their services on day one. Some are more ready than others,” AGCO said in a statement released at the weekend.
“This means Ontario’s new igaming market will steadily expand in the weeks and months following the market’s launch,” AGCO added.
As part of its preparations for launching in Ontario, DraftKings ignited controversial plans to discontinue its DFS offering to players in the province to support its license application.
However, as of today, DraftKings has not been issued with a license by AGCO, a crucial steppingstone to the eventual signing of an agreement with its conduct and management entity, iGaming Ontario.
In contrast, DraftKings rivals FanDuel and BetMGM both launched in Ontario on April 4, along with Penn National Gaming’s theScore brand and PointsBet, something which provoked the ire of investors and commentators on Twitter.
In a statement issued to EGR, a spokesperson for DraftKings acknowledged the delayed launch, suggesting the postponement would only be for a short time.
“DraftKings is working closely with provincial regulators to bring our top-rated mobile sportsbook and casino products to Ontario as soon as possible,” the spokesperson added.
In February, DraftKings CEO Jason Robins admitted that the sportsbook would face an uphill battle to gain advantage in the province over its rivals transitioning from the gray market into the regulated market.
“We are not projecting the same level of market share in Ontario or in Canada in general that we are projecting in the US just because we don’t have that early mover advantage that we have in the US,” Robins told investors during DraftKings Q4 2021 earnings call.
Elsewhere, new Ontario licensee PointsBet is understood to be currently seeking approval from AGCO to offer its points betting product in the province as part of its wider sportsbook offering.