Coolbet halts providing gaming services in Ontario
Coolbet, a prominent online sports betting site, has announced its decision to discontinue operations in Ontario, Canada’s most populous province. With an increasingly saturated market, the operator will cease offering sports betting services in early April. As part of the process, all deposit options will be deactivated on March 21, followed by the closure of gaming operations on March 22. Finally, the website and mobile app will be shut down on April 3.
In a blog post, Coolbet advised its users to withdraw their funds promptly, emphasizing the need to verify their bank accounts for balance payouts. This development comes as Ontario’s regulated market for legal sports betting and online casino gambling experiences a surge in private-sector operators, with over 70 iGaming sites currently active in the province. Notably, the Ontario Lottery and Gaming Corp also operates its own sportsbook and internet casino.
Coolbet, owned by gaming technology provider GAN Ltd, was among the first wave of operators to launch in Ontario back in April 2022. Despite efforts to secure a significant market share, including partnerships and transparency initiatives, the operator faced challenges in Ontario’s fiercely competitive environment. GAN’s CEO acknowledged a slower-than-anticipated start in the province in August 2022, leading the company to revise their outlook due to intense competition.
Tough Competition
The decision to exit the Ontario market stems from GAN’s focus on maximizing profitability and investing resources in high-return regions. While Coolbet will continue its operations in other parts of Canada, GAN remains open to evaluating regulated market opportunities that offer promising returns. However, Ontario is not currently part of their plans.
Coolbet’s departure will slightly alleviate the competitive landscape in Ontario’s iGaming market. Moreover, other bookmakers, prompted by the approaching anniversary of the province’s regulated iGaming launch, are likely considering the renewal of their licenses in light of the challenging business climate.
To conduct business in Ontario, iGaming operators are charged approximately 20% of their revenue. They can apply for a one or two-year permit but must pay an annual regulatory fee of $100,000 per gaming site. Coolbet’s iGaming registration is scheduled to expire on April 3, necessitating Ontario-based users to take necessary actions.
In the event of unsettled bets with undetermined outcomes by the end of March 22, Coolbet assured users of voided and refunded bets. This includes futures and parlays, where any unresolved outcomes will result in voided portions and odds set to 1.00.
Overall, Coolbet’s decision to exit Ontario’s competitive iGaming market highlights the challenges faced by operators in this rapidly evolving industry.