US operators ready Ontario expansion strategies amid delayed market launch
FanDuel and PointsBet to pursue localised approach to inaugural Canadian regulated market as BetMGM commits to dual brand strategy
Sports betting operators FanDuel and PointsBet have asserted their belief that a localised sportsbook offering geared towards Canadian punters will deliver success in the Ontario market.
Speaking at the Ivey Sports Leadership Conference’s All in on Sports Betting panel, FanDuel’s senior director of growth Conor Murray asserted the need to ditch FanDuel’s image of being a ‘big sportsbook in the US’, in order to build a successful local presence in the Ontario market.
In comments at the conference reported by SportsHandle Murray said: “One thing is really clear to me, Canada is not the US. We’ve become the number one sportsbook in the US.
“[I’m] really proud of how we built that business. We’ve written the playbook on launching markets to this point.
“But we would be so naive to copy and paste that and bring it to Canada and expect to win. We have to treat it very differently and we will,” Murray added.
The FanDuel growth director suggested the key to delivering market share in the Loyalist province centred on leveraging the group’s reputation and product strength.
“Fundamentally, we’re about entertainment, when you strip everything back,” Murray said.
“We look to make sporting moments more entertaining and engaging. You’re watching the [Toronto] Raptors, you take $5 and put down a same-game parlay, say on [Fred] VanVleet to get four or more three-pointers, Raptors win, and Scottie Barnes over eight rebounds.
“All of a sudden, you go from enjoying the game to literally being invested in every individual moment. Our ambition is to add so many more layers of excitement to that game,” he added.
Murray’s comments concerning the need for a localised approach to Canada and the importance of product in delivering a slice of market share were echoed by fellow panellist and PointsBet Canada chief commercial officer Nik Sulsky.
Referencing localisation, Sulsky suggested this was about “really engaging our Canadianism, really building an authentic connection to what it means to be a Canadian sports fan, is something we’re diving into.”
“It’s curling mugs and the Trailer Park Boys and the Maple Leaf,” Sulsky added.
PointsBet Canada has clinched a number of Canada-facing partnerships over the last 12 months in preparation for the launch of sports betting, including deals with Curling Canada, dailyfaceoff.com and The Nation Network, as well as the NHL Alumnus Association.
Adding to comments concerning localisation, the PointsBet CCO suggested going dollar for dollar against some of the US’s biggest operators in respect of marketing spend as they expand into Canada would be counterproductive, championing a more targeted approach.
“Let’s face it, PointsBet is a challenger brand. We have to outthink folks, we can’t necessarily outspend them,” Sulsky said.
“The two things we drove home at Monkey Knife Fight (Sulsky’s previous company) was trying to build a really engaging and distinct brand voice and then figuring out what that product innovation is going to be that will hopefully allow us to stand out a little bit and provide a different type of experience for the sports fan.
“Product is going to win. Brand is important, connecting with audiences is obviously important. But as this market evolves and matures — and let’s face it, we’re not even in the top of the first inning in Ontario from a regulated perspective — I think products will win out,” he added.
Elsewhere, BetMGM CEO Adam Greenblatt has asserted his confidence in pursuing a dual-brand approach in the Ontarian and indeed the wider Canadian market, with Greenblatt reaffirming prior comments that the two brands used would be BetMGM and bwin.
“Both brands will be live in Canada,” Greenblatt said. “We see this as incremental, what we see in the US, where we have multiple brands those brands can thrive.
“The brands will be operated by different independent teams, so we see that as fully incremental to value,” he added.
BetMGM’s Ontario expansion coffers are expected to be expanded in the near future by parent companies MGM Resorts International and Entain, as part of a $450m funding commitment by the two joint venture partners.
At present, Ontario’s long-awaited sports betting and igaming launch has been delayed, with the sector hoping to be operational in time for the Super Bowl in February 2022.