Kambi, a sports betting technology platform provider, plans to expand its presence in Ontario, one of the world’s most competitive online gaming markets, by taking over the operation of Ontario Lottery and Gaming’s sports betting products.
That news, announced on Monday, is contingent on a new contract being finalized. If approved, FDJ Group, OLG’s current sports betting vendor, would transfer its rights and responsibilities for the PROLINE Ontario sports betting app and the lottery’s retail network to Kambi for the next seven years.
One the new contract is in place, Kambi executives plan to implement its platform in the second half of this year.
Ontario Unique Gaming Market In Canada
Ontario is Canada’s most populous province, with a population of roughly 16 million people. In the neighboring United States, only New York and Florida have more people among states with legal sports wagering.
However, those states do not have nearly the number of authorized operators as Ontario. According to iGaming Ontario, there are 50 operators in the only province where the lottery gaming products go a head-to-head with approved online Ontario sports betting apps, such as BetVictor and 888Sport.
In OLG’s 2023-24 annual report, released last November, President and CEO Duncan Hannay that competition forces the provincial lottery “to create new, compelling products and experiences to keep customers engaged and drive the growth of our Digital business.”
The lottery’s digital division, which includes its online casino and lottery products, generated CAD $332 million in profit for the province. That same year, iGaming Ontario reported that the 75 Ontario online casino, sports betting and peer-to-peer poker apps produced gaming revenues of $1.4 billion.
In addition to the combination of all online products, it’s also difficult to gauge the impact of private operators on the lottery’s sales because single-game betting has only been legal in Canada since 2021.
From a retail perspective, OLG works with roughly 10,000 approved businesses and establishments. According to the 2023-24 annual report, proceeds from retail sports betting totaled approximately CAD $94 million.
Kambi ‘Excited’ About Opportunity
OLG is the latest partner for Kambi, which works with more than 40 operators across the globe. That includes such operators as Bally BET and BetRivers Sportsbook, which are approved operators in Ontario.
Kambi CEO Werner Becher said in a statement that it’s “exciting” with a partner the size of OLG.
“Ontario has a competitive online market, but I believe a combination of OLG and Kambi will see PROLINE rightly compete with market leaders while continuing to raise the bar of its retail product,” he said.
USA Today photo by Nick Turchiaro
