CGA PROFILES

BETREGAL

The online sportsbook and casino is excited for what’s to come in 2021 after joining the Canadian Gaming Association.

When it comes to the potential growth of sports betting in Canada this year and beyond, Canadian operators are looking to position themselves at the front of the queue.

BETREGAL, THE LATEST member of the CGA, is no different.

“We’re salivating at the idea of taking on our home market,” BetRegal’s Head of Marketing Aly Lalani tells Canadian Gaming Business. “We want to be a major Canadian sportsbook.”

The rapidly growing company, run by Canadian industry veterans including CEO Mike Mirtl, has already blossomed outside of Canada. It has built a successful footprint in several European markets including the UK, Germany, and Scandinavia.

Now, it is focused on becoming an industry leader in Canada as the country’s sports betting offerings look poised for a boom.

TARGETED AMBITION

Lalani has a wealth of experience in the sports and iGaming field, having previously served as the marketing director for industry giant Pinnacle Sports, primarily in the European and Asian markets. With the knowledge he and Mirtl bring, BetRegal has enjoyed European success, establishing sub-operator Maltese and British gaming licenses and focusing, as Lalani puts it, on “accelerated growth” particularly in the UK market.

“Our strategy when we started was getting to market as quickly as possible using a two-pronged approach,” Lalani explains. That consisted of first establishing the brand and entering the marketplace quickly using software providers, and subsequently building out a platform of its own. Currently, the company offers various sports betting derivative products, from “BR Bot,” which applies machine learning to your betting history to recommend potential betting options, to a fully integrated live-betting match tracker. “We’re slowly moving away from the software provider approach and into a proprietary platform.”

But, while the initial focus was on Europe, ever since its founding in the middle of last decade, BetRegal has harboured lofty but considered ambitions when it comes to North America.

Lalani and Mirtl are both Canadian, and the excitement at the potential opportunities ahead is palpable. “A couple of years ago, when Canada started moving more towards regulation, we knew that Canada was going to be our focus,” says Lalani. Right now, he estimates the company’s base is still probably 70 to 75 per cent UK-focused. That, though, is decreasing. Whereas BetRegal’s historic top three markets of focus have been the UK, Germany, and Norway, Canada is now the main object of their attentions.

“With Canada, we think we can take everything we've learned over the last 15 to 20 years in the industry and apply it to home. We’re really pushing forward aggressively.”

A LAND OF OPPORTUNITY

Up to this point, Lalani divulges that BetRegal has seen some organic acquisition in Canada. But the excitement in his voice is audible when he discusses what’s in the pipeline already, and what developments in Canadian sports betting could bring for the company.

“We're in the contract stages of announcing a very big Canadian league sponsorship, so we're going to start that brand development process right now,” he says, describing that as “the centerpiece” of their initial marketing strategy in Canada. “There’s a halo effect that comes along with partnering with a really storied and tried-and-true Canadian brand,” he notes.

Indeed, strategic partnerships will be key for BetRegal’s progress. Initial conversations are already underway with notable Canadian former pro athletes, including ex-hockey players and members of the Blue Jays’ MLB championshipwinning team of the early 1990s. The focus, Lalani explains, is developing brand credibility. “We’re trying to differentiate from others through focusing on product, customer, and localization.”

Right now, there are a multitude of Canadian operators poised to strike into the market as the industry moves further down the line with sports betting. As Lalani succinctly describes it, BetRegal is only on the first leg of its marathon when it comes to operating in Canada. One differentiator will likely be local market knowledge, and that’s something of which the company is already acutely aware. If you live in a major Canadian city, you’re most likely a fan of that city’s professional sports team, such is their saturation into the city’s culture.

“We’re looking to tap into that with a targeted focus on the city localization aspect, the hometown feel,” Lalani continues. “We have the benefit of having

that intimate knowledge that allows us to hone in locally. We’re aware of what’s needed in this marketplace to develop a strong Canadian brand.”

OPERATING RESPONSIBLY

BetRegal has an even greater focus, though, and that is ensuring it proves itself as a responsible operator. Responsible gaming is an important topic right now as Canadian bettors witness the explosion of sports betting in the U.S. and the inundation of that market. Keeping customers safe and protected, and responsibly managing their gambling has never been more important on what feels like the eve of sports betting’s true advent in Canada.

Lalani emphasizes that the company’s biggest focus is operating in good faith. “That’s because, compared to more established markets, Canada’s very naïve.” Education will be key, and BetRegal’s aim is to be both the place to make wagers and help familiarize the public with the concept of sports betting. “Our handshake with the Canadian public is going to be very all-inclusive.”

For Lalani and Mirtl, a priority is also focusing on doing some good in the local communities and helping to remove the negative connotation that sports betting still has in many corners. To that end, the company’s initial splash with their Canadian league partnership will entail a huge push on responsible gaming.

TAPPING THE POTENTIAL

The timing of BetRegal joining the CGA, amid the North American acceleration of sports betting and debate in Canada’s House of Commons, is poignant. They know just how important the collaboration is to their aspirations.

“There’s a credibility component and a higher degree of professionalism that comes along with the association,” acknowledges Lalani. “We can quite clearly benefit from the relationships the CGA already has, and we feel we can also provide value to the CGA in our role as a positive voice of an offshore operator. We want to be regarded as one of the first ones to do this well and properly in Canada, and CGA membership helps to both bring that credibility and act as something of a microphone for us.”

All in all, BetRegal recognizes the potential in Canada is astronomical. Lalani compares it to the existing dominant gaming markets like the UK and Germany. “It’s a huge opportunity.”

As for what may be down the line, the major Canadian league partnership and outreach campaigns are exciting, but the company has other hopes, too. Yes, digital gaming has been its core focus, but traditional options can play a role, too.

“We’re exploring opportunities in that space, such as partnering with existing properties or casinos,” Lalani explains. He cites their retail presence in emerging South American markets: there are BetRegal betting terminals in multiple land-based casinos in Central America. “We have that footprint already and we see a real opportunity to not only be an online space but also to develop the BetRegal brand through strategic partnerships with landbased casinos, major entertainment venues, etc... We want to be that first thought when Canadians in the industry think of sports betting or gaming.”

It’s a long and winding road, but BetRegal is walking now so it can later run.

FANSUNITE

Vancouver-based global iGaming and sports betting company FansUnite has taken huge strides in 2020 before becoming the CGA's latest member.

FansUnite is looking to establish itself as a leader in the sports and esports fields at a time when sports betting and online gaming are becoming the core focus within the Canadian industry.

SCOTT BURTON, CEO of the technology and sports betting company, boils down its appeal: “We can handle everything from gaming licenses to payments, banking, hosting, age and identity and location verification, risk management. We can plug in casinos, different sports offerings, as well as our history in fantasy and esports.”

Indeed, FansUnite boasts its own sportsbook, integrated B2B solutions, and B2C offerings. Ultimately, the aim is to be a full and comprehensive iGaming solution, complete with an entire marketplace of casino games, traditional sports wagering, and esports for consumers, as well as integrated services for other gaming companies. And, as Canada is moving forward with legalizing single-sports betting, they’re already well on the way.

Burton notes that CGA membership just made sense for the company in late

2020. “A big motivation there was to get a seat at that table and open some doors,” he says.

FROM TRADITIONAL SPORTS TO FULL-SUITE ESPORTS

In Burton and his business partner, President Darius Eghdami, FansUnite has a leadership team that has a distinct vision for its path forwards. Burton, a Vancouverite with a passion for sports betting, entered the industry in 2013 with Askott Entertainment. It all started with an intriguing and engaging concept: “a sort of social and peer sports betting exchange,” as he puts it, one where users would be informed and entertained, and keep coming back.

Given Canada’s reluctance to take up legal single-event sports betting options, Burton and his team knew that they had to look elsewhere. At that time, the U.S. was far away from embracing sports gambling. Instead, they focused on a jurisdiction with decades of history in the space: the United Kingdom.

Starting out in the traditional sports space and licensed out of the Isle of Man, Askott moved into esports around the start of 2015 and quickly recognized the opportunity that market presented. Their daily fantasy site for esports, esportspools.com, registered about 200,000 users and led to a full suite of products for betting on esports – in-play betting, fixed odds, daily fantasy, and content.

MERGING AND GROWING

By 2019, Askott had transitioned to offering a full sports and esports platform. In 2020, the company became a runaway train. As for many businesses, it all started with a forced change of plans. Askott had been looking early in 2020 to list publicly in Canada but COVID-19’s progression to pandemic status disrupted those plans. Instead, discussions began between Askott and FansUnite.

Burton had known Eghdami, a fellow Vancouver-based professional with a passion for and expertise in gaming, for several years. FansUnite went public in March and was, as Burton notes, “in acquisition mode.” Of particular success had been its work with Scotland-focused UK sportsbook, McBookie, which benefited hugely from the scalability FansUnite offered after being acquired last year.

With Askott looking to move back into traditional sports and casino after years focusing on esports, the benefits of a merger were clear. Askott and FansUnite merged in August 2020 and Burton became CEO, with former FansUnite CEO Eghdami moving into the role of president.

AN IN-DEMAND PLATFORM

A core part of FansUnite as it is today is its Chameleon platform, a full esports B2B white-label iGaming solution which has everything from licensing to banking and payments to verification and risk management built into it. “We can provide a full solution for anyone wanting to get into gaming or gambling,” says Burton.

For instance, FansUnite can cover a brand’s licensing in return for a fee and/or revenue share, leaving that brand to focus on the marketing side. Or, Burton explains, the path being followed with esports is focusing on licensed operators. FansUnite will go to existing sportsbooks and casinos that don’t have an esports portfolio and can plug its offerings right into the operators’ existing infrastructure.

A key aspect of Chameleon and FansUnite’s appeal is customizability and feature switches. If customers want in-play esports betting but no fantasy or casino, those features can be turned off. “We can run a sportsbook with multiple integrations, so you can tell us who you want to get your data feed from,” Burton adds. FansUnite currently offers 6,000 casino games for integration and also produces its own RNG games to appeal to the younger demographic with more of an esports or video game style. There are 15-20 payment methods that can handle global payments, Burton estimates. “All in all, it’s a full turnkey solution whether you want a sportsbook or esports or casino.”

THE ROLE OF COVID-19

Burton isn’t afraid to acknowledge that the COVID-19 pandemic, even amid all of its devastating impacts on the gaming industry, has had its silver linings. One of those has been an increased consumer and operator focus on esports, and FansUnite’s CEO credits that as a significant factor in the company’s growth this year. “Fans are looking to add esports to their portfolio in a big way,” summarizes Burton.

Another pivot has been exemplified with McBookie, which was previously a traditional focused sportsbook but has seen the additions of virtuals, a live dealer, and so forth. Burton notes FansUnite likely wouldn’t have had “the time or the inclination” to focus on building out those facets were it not for the pandemic’s impact. part out without the pandemic. “But now we have a very robust offering in terms of casino, live dealer, and virtual and that’s part of the rapid revenue growth McBookie has seen.”

Looking to the future, Burton is cautiously optimistic. Interest from other companies has been high, inbounds have been fielded, deals have been signed. Two Malta gaming licenses were secured to add to its progress in the UK.

NORTH AMERICAN EXCITEMENT

But it’s the steps the company has taken in the North American frontier that are the most exciting in the current climate. In September, FansUnite announced its first partnership in the U.S. with GameCo., which will allow it to launch its Chameleon platform in states including New Jersey and Nevada under GameCo’s existing licensing. A similar deal was struck in December to expand into Colorado.

In the early weeks of 2021, the company partnered with compliance and licensing specialist OneComply Inc. to help strategize its further expansion in the States, and signed with industry giant Gaming Laboratories International (GLI) to assess its online betting offerings for compliance and certification GLI standards.

Burton suggests a U.S. launch is close and hopes that the company’s first installation in the States is announced within the first quarter of 2021. The current focus with the GameCo partnerships is on esports and esports betting. FansUnite will first focus on states with “favourable” esports legislation, which Burton notes is considerably less than the 50 per cent of states that have said "yes" to sports betting. But the recent progress made by the U.S. sports betting market is encouraging for a company like FansUnite.

In Canada, opportunities have been limited until now. But, with sports betting and iGaming on the agenda, the company has joined the CGA and has also been working with global firms such as GLI as well as reaching out to Canadian

heavyweights like theScore and brickand-mortar casinos. The aim, he notes, is to make sure everyone knows what FansUnite can offer.

Burton hopes that FansUnite’s status as a full, made-in-Canada technical solution could add to the allure. In the online gambling space, close proximity to your platform provider – both in terms of geography and shared knowledge – is advantageous. “You also get the added benefit of understanding the local markets,” says Burton. “Your hockey offering might need to be a lot better in Canada than anywhere else in the world. Local knowledge on market and product helps hugely, and we bring those things.”

A ROSY OUTLOOK

Membership to the CGA will also permit the Vancouver-based FansUnite to advocate on legislation impacting Canadian gaming companies, something that’s understandably appealing right now. After a banner 2020 for the company, including the kind of growth Burton and his team would have dreamed of, the sky’s the limit.

FansUnite is cautiously hopeful that, with the additional support of the CGA and the progress it has already made in recent months, it can almost double revenue for the entire company. The company has been in tech-building, startup mode until now, notes Burton. Now, it can look ahead to firing on all cylinders in Canada, the U.S., and beyond. The times are changing, and FansUnite is ready to take advantage.

KAMBI

The B2B sports betting provider and new Canadian Gaming Association member is looking to bring its U.S. success north of the border.

When it comes to sports betting solutions, Canada is poised to become the land of sports betting opportunity. Kambi certainly wants in on the action and feels well-placed to contribute after joining the Canadian Gaming Association (CGA) in recent weeks.

“THERE’S A HUGE opportunity to help Canadian operators attract customers that are dealing with offshore markets right now,” says Evan Schaffner, Kambi’s Head of Partner Success, Americas. “It feels like with the legislation in the works, it’s the right time to join the party.”

The B2B sports betting provider already has a huge global footprint. Present in six continents and with a U.S. reach that expands to 13 states, Canada was the next logical step for the company to take, given the way the conversation around sports betting is intensifying north of the border.

Indeed, Schaffner suggests they will look to the way things have progressed in the U.S. when mapping out what entry into the Canadian market may look like. Kambi, he notes, wants to deeply understand the interest, trends, and the legislation that will be present from province by province.

“One of the keys to our success has been establishing local business ties and, as we have in the U.S., we’ll really look to adapt our offering to what each local population is looking for, as well as obviously what the provinces are allowing.” After all, Schaffner says, that approach is what’s likely to not only provide the greatest experience for customers, but also drive the biggest revenue opportunities for provinces and provincial operators alike.

“There are multiple elements of an offering that, altogether, really make this the right time for us to join the CGA,” he continues. “We’re really excited about membership and about Canada on the whole.” In particular, he notes, membership of the association provides a world of opportunities: in short, as Schaffner puts it, it’s a real “door-opener” for Kambi to get to know the market intimately ahead of time.

BRINGING EXPERT KNOWLEDGE

Kambi feels it has a lot to offer to the industry, too.

The company began life as a B2B spinoff of betting and gaming giant Unibet. These days it is a global company with offices in Bucharest, London, Manila, Philadelphia, Stockholm, and Sydney, in addition to its headquarters in Malta. Schaffner says the company has an “extremely strong” Scandinavian and Nordic heritage, reflected in its knowledge of sports like hockey, which will naturally prove useful in the Canadian market.

It’s in the U.S., though, seen as the closest translation of what a progressive Canadian sports betting marketplace may look like, where the company has been making big strides in its B2B work. Kambi does significant business across most of the regulated U.S. states through partnering with both multi-state and local operators.

Because it is waiting for regulations to evolve in Canada, the company does not currently have operations in this country. However, what it does have is customers and partners in the U.S. that have Canadian operations, and it is excited to expand those relations as and when Canada comes into play.

Kambi aims to help educate the market based on its wide-ranging experience. Core to its business model is integrity, emphasizes Schaffner; Kambi is a member of organizations like the IBIA (International Betting Integrity Association) and has a full-time sportsbook control team that monitors activity 24/7 to detect signs of sports manipulation at the earliest of stages. “CGA membership is a great way to not only make those capabilities known but to really contribute to watching the industry develop into its next iteration in Canada,” says Schaffner.

PIVOTING IN A PANDEMIC

Like every business in the gaming industry, Kambi’s operations were severely hit by COVID-19 in 2020. With traditional sports largely shut down until the fall or even more recently, and many of their retail partners closed due to the pandemic, the company was forced to pivot.

“While we were going through this, we started to really think forward about how the world might change and our world might change,” Schaffner explains. Key among Kambi’s initial moves was the developing of a process that allowed it to work with its operating partners to conduct retail deployments remotely. “That’s not necessarily our preference but under the circumstances, those went off without a hitch. We're extremely proud of the fact that we were successful in those ventures but also that we were forward-thinking in our approach.”

Even prior to COVID-19, Kambi had found itself ahead of the game. It had rolled out a technology it calls “BYOD” or “Bring Your Own Device”, which enables bettors to view lines and construct bets anywhere, generating a QR code which can be scanned on-property at a counter or kiosk – thus placing their wagers without coming into contact with any surfaces. “That turned out to be very good foresight and a solution we were fortunate to be able to provide to our partners,” admits Schaffner. “It was extremely well-received by our partners, they appreciate us being ahead of the curve on things like that.” The technology has seen “phenomenal” adoption and, as one may imagine, took on even more prominence once COVID-19 hit.

Moving forward, Kambi is confident it can provide a long-term safer option for continuing in-person retail experiences. That adaptability could be key to success in the Canadian market.

GRAND DESIGNS IN CANADA

On the whole, Kambi believes it has what it takes to succeed in a future Canadian market. Schaffner reiterates that the company will look to follow its varied-bystate model north of the border. Neither the U.S. nor Canada is a one-size-fits-all model: if and when Canadian legislation passes, the next step will be provinces holding numerous discussions with operators and regulators about how to proceed along their own lines, for their own demographics.

Schaffner believes Kambi is perfectly equipped to tackle that challenge head-on when the times comes. “Every U.S. state is a bit different. Every operator certainly has their own unique qualities and approach to the market, from what they offer to how they acquire their market share. We've been incredibly nimble with our ability to really provide a customized level of customer or partner support.”

Kambi is a true B2B operation, its goal is to build strategic partnerships with operators including some of the biggest known names in Canada and to continue its U.S. nimble footedness by reacting to what’s approved from a regulatory standpoint from province to province.

The company refers to itself as a springboard for visionary sportsbooks and they fully intend to continue that north of the border by partnering with existing market leaders or companies with the potential to achieve market leadership. Schaffner stresses that Kambi has the potential and the tools help operators with both their front end and their back end and to work in a consultative process alongside them as they move through the regulatory process.

In the U.S., that approach has brought professional collaborations with the likes of major multi-state operators Penn National Gaming and Rush Street Interactive, as well as partnerships with prominent local operators who are trusted in their markets. One of their U.S. partners, Mohegan Gaming & Entertainment, runs operations at Niagara’s Fallsview Casino. Schaffner cites that company as one of many who are surely awaiting legislation to move forward the sports betting scene in Canada. The audience north of the border is massive and is hungry for the kind of opportunities afforded to U.S. gamblers in recent years. Ontario alone, after all, is the fifth-largest jurisdiction in North America.

Reiterating that there is a huge opportunity to mirror and build upon what Kambi has experienced in the U.S. market, Schaffner shares the company’s excitement about what the near future may bring. “We’re incredibly optimistic about being part of the Canadian gaming community and what that may bring. We’re very excited about the potential moving forward in this market.”