Ontario Pondering ‘Liquidity Challenges’ Caused by Sports Betting, iGaming Market

Ontario Pondering ‘Liquidity Challenges’ Caused by Sports Betting, iGaming Market Pleas Subscribe For Daily Sports Betting News

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Ontario’s chief legal officer says the government is pondering “liquidity” problems plaguing the daily fantasy industry, which arose when the province launched its competitive market for sports betting sites and internet casino gaming.
“What's next for me from the political side is, and I'm just going to say it without a lot of details, we have liquidity challenges,” Ontario Attorney General Doug Downey said Wednesday at the Canadian Gaming Summit in Toronto. “I don't want to talk too much about what I'm doing, but that is very much on my mind.”  
What happened?
While Downey was thrifty with the details,...

Ontario’s chief legal officer says the government is pondering “liquidity” problems plaguing the daily fantasy industry, which arose when the province launched its competitive market for sports betting sites and internet casino gaming.
“What's next for me from the political side is, and I'm just going to say it without a lot of details, we have liquidity challenges,” Ontario Attorney General Doug Downey said Wednesday at the Canadian Gaming Summit in Toronto. “I don't want to talk too much about what I'm doing, but that is very much on my mind.”  
What happened?
While Downey was thrifty with the details, it is evident that the implementation of the new regulatory framework for Ontario sports betting in April 2022 dealt a big blow to DFS in the province, as major operators shuttered their operations in favor of offering event wagering and internet-based casino gambling instead. 
Companies such as DraftKings and FanDuel were among those that kiboshed their DFS businesses in Ontario, leaving residents without a form of entertainment and wagering they previously enjoyed. The provincial scene for online poker has been stifled as well for similar reasons.
Those factors are connected to Ontario’s rules for online gambling. For starters, “pay-to-play” DFS has been labeled as a form of gambling in the province and not a “game of skill” as in some U.S. states. That requires operators to register with Ontario authorities, pay licensing fees, and turn over a percentage of their revenue to the province. 
Ontario regulations also require all players on an iGaming site to be in the province. This shrunk the potential pool of players for online fantasy or poker in the province, spurring the DFS exodus. 
“Fantasy sports play is down in Canada due to the emergence of legalized sports wagering as well as Ontario’s implementation of unsustainable paid fantasy regulations,” the Fantasy Sports and Gaming Association noted earlier this week in a press release. 
Tweaks a possibility
The loss of DFS options and poker opponents in Ontario coincided with a hit to online bettors of horse racing. The sport has been hindered by the nature of Canadian law and the fact that Ontario had many iGaming operators taking bets on horse racing in the province before the launch of the regulated market in April 2022.
When those same operators transitioned into Ontario’s regulatory framework they were forced to drop horse racing from their apps and sites to abide by Canadian and provincial rules. 
Yet regulators in Ontario — which is still the only province that allows multiple private-sector operators of iGaming sites to take bets within its borders — say they are prepared to tweak the rules if necessary. 
For instance, the Alcohol and Gaming Commission of Ontario (AGCO) recently proposed to ban the use of athletes and certain celebrities in iGaming advertising. A decision on that front is expected in “weeks,” according to Tom Mungham, chief executive officer of the AGCO, during Wednesday’s panel.
“We will always continue to assess risk in the marketplace,” and amend the rules where needed, Mungham said.  This article originally appeared on Covers.com, read the full article here
Source: https://www.covers.com/industry/ontario-liquidity-sports-betting-fantasy-contests-downey-june-14-2023