Twelve months ago, Altenar made a name for itself as one of the first major European sportsbook providers to go live in Canada’s nascent regulated province of Ontario.
With the market now in its second year of being regulated, we spoke to Altenar’s Head of Sales, Antonino Barra, to hear more about the success Altenar’s market-leading technology has brought to Ontario, as well as the award-winning provider’s expectations for the year ahead.
It is almost a year since Altenar entered Ontario. How have you settled into the region and how has the product been received?
We’ve been live in the region with a big-name operator since the early days of the market being regulated back in early 2022. Overall, business has been fantastic – we can see how much demand there is for sports betting in Ontario thanks to the influx of very successful teams across a wide range of sports, including the Canadian Football League.
When we went live in the market back in April 2022, we envisaged a bright start for us, and it has presented a significant opportunity to develop and implement our bespoke trading and pricing models for Canada’s most popular sports. Without a doubt, we have one of the best trading teams in the industry and we’ve got some fantastic case studies to back it up. All in all, it’s been an excellent first year and our products have been incredibly well received.
What is attractive about the region from a sportsbook point of view?
Ontario loves sport, so it has been a great experience for us so far. Teams such as the Toronto Blue Jays, Toronto Raptors and the Ottawa Senators are all well supported, and this is evidenced in the extensive popularity we’re seeing when it comes to sports betting on some of Canada’s best-loved sports.
According to iGaming Ontario’s first year’s performance report, Basketball was the most popular sport to bet on, accounting for 29% of all wagers, followed by soccer (15%), football (13%), hockey (9%), and baseball (8%). Sports categories include bets on a variety of athletic activities, including but not limited to professional leagues. Having such a diverse range of sports has proven to be a fantastic challenge for our trading teams and we’ve really enjoyed becoming localised experts on North American sports!
Did you set any targets for your first year in Ontario and did you achieve them?
Being able to provide a full solution to players in Ontario, with one of the most comprehensive sports betting propositions available, was also another OKR we put a lot of effort into achieving. A crucial differentiator was to provide a bespoke provision of ad hoc services that could be tailored to exactly what Canadian players have been looking for. So far, it has been great to see all of these vital targets reached and we look forward to surpassing them.
What advantages does Canada offer as opposed to LatAm or the US?
When we compare Ontario to the LatAm region, we must understand that the market is less granular. The legal framework allows space to offer different business plans and enables us to have been one of Ontario’s true pioneers.
In LatAm, it is easy to be overpowered by certain operators who hold too much sway, given some jurisdictions have big name operators holding up to 75% of market share. The retail vs. online split is also hugely different, in that Canada is hugely online-first, while in LatAm – retail will always be the flagship brand.
Looking at comparisons with the US, the cost can be hugely prohibitive in comparison as you have to go through the licensing process for each new US state. As a result, the bureaucratic hurdles involved in making that happen require a vast provision of resources, as well as the risks involved in the land-based lobby slowing down any launch process.
On the other hand, when examining the situation in Ontario, it becomes apparent that the regulatory framework is remarkably flexible, offering a highly convenient platform for sportsbooks venturing into the North American market for the first time. This aspect serves as a significant incentive for numerous European brands to establish their presence in North America prior to expanding further south. The market’s favourable reputation stems from its commendable ability to provide tailored conditions that are exceptionally conducive to growth.
How does the next 12 months look? Do you expect to branch into other provinces as they come online?
Absolutely. As it stands, Ontario is the only province that currently offers a licence and is open for entrants, but we will look to target all provinces as they slowly come online. The next couple I expect to follow suit are Alberta and British Columbia, and we’ll be first in the queue for those. The current status regarding lotteries is that they have a monopolistic hold over these provinces, just like we’ve seen with land-based and tribal influence in the US. Of course, Canadian lotteries have a vested interest in seeing themselves hold onto the market so this will be an interesting development to keep an eye on.
For 2023 to 2024, we’ll be focused on solid growth and helping new operators develop and grow their operations to become verifiable contenders.
Finally, given the economic outlook over in Europe – and indeed, the likely contractions faced, there’s plenty of fortune awaiting on the western side of the Atlantic, so we’d certainly encourage brands looking for a better outlook to set foot in here – it’s a place to be watched with interest.