Coolbet, an online sportsbook and casino owned by GAN, is set to exit the Ontario market in April. The company, which entered Ontario’s regulated iGaming market in April 2022 under an iGaming Ontario (iGO) license, will initiate the exit process by disabling all deposit options on March 21, ceasing gaming operations on March 22, and closing its website and mobile app on April 3. This decision has raised concerns among customers regarding fund withdrawals and the need for account verification.
The Exit Strategy:
Coolbet’s withdrawal from the Ontario market stems from unspecified reasons, and its exit strategy is designed to minimize disruptions to customers. The company encourages customers to promptly withdraw their funds and emphasizes the necessity of verifying the bank account linked to the withdrawal. Furthermore, customers are advised to be vigilant about checking their email for detailed instructions on completing the verification process.
The GAN Acquisition:
Coolbet’s departure from Ontario comes after GAN’s acquisition of the Vincent Group, Coolbet’s parent company, in 2021. This $175 million cash and stock deal, initially announced in November 2020, played a pivotal role in positioning GAN as a comprehensive B2B solutions provider for real-money gaming within the competitive US market.
Betsson’s Expansion in Ontario:
Interestingly, Coolbet’s exit coincides with Betsson’s recent expansion efforts in Ontario. In February, Betsson secured both operator and supplier licenses for online gaming in the province and promptly launched its Betsafe brand’s offerings. Betsafe, operating on the Strive Gaming platform, features sports betting and an online casino with localized product offerings for Ontario. Additionally, Betsson obtained a supplier license, enabling the provision of its sportsbook product to other operators on a B2B basis.
Coolbet’s decision to leave the Ontario market, despite its relatively short presence, underscores the dynamic nature of the iGaming industry. The concerns raised by customers highlight the importance of clear communication and support during such transitions. Meanwhile, Betsson’s entrance into Ontario exemplifies the ongoing expansion and competition within the Canadian iGaming sector. As the industry continues to evolve, market participants must adapt to changing conditions and regulatory landscapes.