Coolbet, on Thursday, announced that it is withdrawing from the Ontario market with its sports betting site and application. One year closer to the anniversary of the Canadian province celebrating launching the legal market has brought disappointment already. Coolbet has cited that the market is too competitive, and it would rather focus on investing resources in other regions where there is a potential to earn profit.
Experts heard that and now predict that Coolbet could be the first among many more operators to leave the market. Per the latest casino news, Coolbet will stop accepting deposits on March 21, 2023, shut down its gaming operations on March 22, 2023, and put the shutter down on its website & mobile application on April 03, 2023, the day it is officially supposed to renew the license.
That’s not happening, obviously, and customers are left with the announcement informing them to withdraw their funds at the earliest. Customers who are, or have been, unable to do the same must verify their bank accounts where Coolbet can transfer the funds. We strongly encourage you to withdraw, and read the announcement further, asking customers to check their email for instructions on how to proceed with the withdrawal.
A bet whose outcome cannot be known by the end of March 22, 2023, will be declared void. A similar approach applies to parlays with the common point that the funds will be returned to customers.
The iGaming market in Ontario is pretty competitive, with over 70 sites operating in the region, excluding Ontario Lottery & Gaming Corp. Private players were permitted to operate their venture and offer sports betting services. Coolbet was among the first operators to get the green signal and begin working. The idea was to set itself apart through transparency and advertising. For instance, Coolbet had partnered with Andre De Grasse with the tagline Canada’s Fastest Man.
Five months into the environment, GAN Ltd called the market slower than anticipated. As a matter of fact, its Chief Financial Officer had even softened the outlook of the venture in the province, citing competitiveness as a reason. Coolbet is among the top sports betting sites in other regions of Canada. A closure in Ontario is not the final call to take down the operations from everywhere. A statement from GAN Ltd reads that the company will evaluate its options in regulated market opportunities that have good returns.
We did not see a near-term path; read the company statement after highlighting that GAN Ltd now focuses on profitability and redirecting its investment plus resources in the highest return regions.
Ontario charges a 20% fee from the revenue earned by operators in addition to a yearly license renewal fee of $100,000 for every site. This simply adds to the competitive nature of the market. A push could be in the pipeline for others to reconsider renewing the license in Ontario.
Estimates say that more operators are looking to get on the board during the 1-year anniversary of the sports betting market in Ontario.