Fanatics is set to make its debut in Canada’s regulated online gambling market after receiving approval from the Alcohol and Gaming Commission of Ontario (AGCO).
The licence clears the way for the US-based sports betting and gaming company to launch its iGaming operations in Ontario, although the company has yet to confirm exactly when its platform will go live.
A Fanatics representative said further details about the launch are expected to be announced in the coming weeks.
The move represents an important expansion for Fanatics, whose online betting operations have so far been focused on the US market.
Fanatics targets Canada for the first time
Fanatics currently operates its sportsbook across 22 US states and Washington, D.C., while its online casino products are available in four states.
Ontario will therefore represent the company’s first major move into a regulated online gambling market outside the US.
The province provides Fanatics with access to an established iGaming ecosystem, but entering Ontario also means going head-to-head with some of the biggest names in the global betting industry.
Ontario already has a crowded iGaming market
Fanatics will not be entering an emerging market.
Ontario currently has 48 licensed operators running 83 online gaming sites, with competition continuing to increase. Recent additions include Hard Rock Bet and DAZN Bet, both of which entered the market within the past six months.
Despite the crowded field, Ontario remains a major opportunity for operators.
The province’s regulated online gambling sector generated more than C$4.2 billion in gross gaming revenue during its fourth year of operation, demonstrating the scale of the market Fanatics is now targeting.
Player migration toward regulated platforms has also continued to improve.
According to a recent Ipsos survey commissioned by iGaming Ontario and the AGCO, more than 91% of online gamblers in the province now use licensed operators. That represents an increase of more than seven percentage points compared with the previous year.
Can Fanatics still stand out?
The size and maturity of Ontario’s market could make customer acquisition a significant challenge for the newcomer.
Amanda Brewer, senior vice-president of policy and communications at the Canadian Gaming Association, has argued that operators now have fewer opportunities to differentiate themselves through their basic product offering.
With companies generally operating under the same regulatory framework and providing access to broadly similar casino and betting content, factors such as technology, customer support, loyalty programmes and brand recognition are becoming increasingly important.
Fanatics could have an advantage in the latter category, particularly given its established position in the sports industry.
Ontario remains attractive to international operators
Despite the market’s increasingly competitive nature, Ontario continues to attract interest from major international gambling companies.
Industry observers point to the province’s established regulatory framework and relatively workable tax structure as two reasons why operators continue to view Ontario as an appealing expansion market.
Fanatics’ entry could also encourage other major brands that have yet to enter the province to reconsider their position.
For now, the next major milestone will be the launch date. Once Fanatics goes live, the company will have to prove that its established US sportsbook and broader sports brand can translate into market share in one of Canada’s most competitive regulated iGaming jurisdictions.