Hard Rock Digital’s recent application for an Ontario iGaming license has fueled speculation about the potential sale of PointsBet Canada. This development comes amidst ongoing negotiations between Betr Entertainment and MIXI for the acquisition of PointsBet Holdings Ltd.
Key Takeaways:
- Hard Rock Digital applies for Ontario iGaming license
- Betr Entertainment and MIXI in bidding war for PointsBet Holdings Ltd.
- Potential sale of PointsBet Canada linked to ongoing negotiations
Hard Rock’s Strategic Move
Hard Rock Digital’s application for an iGaming license in Ontario has set the industry abuzz. This move is seen as a significant step, potentially paving the way for the rumored acquisition of PointsBet Canada. An industry insider with connections to Hard Rock revealed:
> Hard Rock is applying for a license in Ontario. The Hard Rock deal is contingent on Betr buying PointsBet Australia and divesting the Canadian business but the only news I’ve seen says it involves selling the customer database, which only makes sense if a license application is in the works. It can take six months or more to get a license [in Ontario].
This development adds a new dimension to the ongoing saga surrounding PointsBet Holdings Ltd.
The Bidding War Intensifies
The battle for PointsBet Holdings Ltd. has intensified, with Betr Entertainment and Japanese entertainment giant MIXI locked in a fierce bidding war. Betr, already the largest shareholder with a 19.9% stake, has upped the ante with an improved offer.
Betr’s latest bid stands at AU $360 million (USD $232.4 million), a combination of cash and shares. This comes in response to MIXI’s April takeover bid of AU $350 million. The PointsBet board had previously shown favor towards MIXI’s offer, citing concerns over Betr’s reliance on debt financing.
PointsBet Canada’s Future in the Balance
The potential sale of PointsBet Canada is a crucial component of Betr’s revised bid. Industry insiders suggest Hard Rock could be the prospective buyer, aligning with their recent license application in Ontario.
As of now, neither PointsBet Canada nor Hard Rock Digital have commented on these speculations. The Alcohol and Gaming Commission of Ontario (AGCO) has confirmed ongoing iGaming operator applications but stated that Hard Rock specifically has not applied for registration.
Ontario’s iGaming Landscape
Ontario’s iGaming market continues to grow, with 49 licensed operators and 84 gaming websites currently in operation, according to iGaming Ontario. Hard Rock Digital’s potential entry could further diversify this expanding market.
The Road Ahead
As the industry watches these developments unfold, the outcome of this complex negotiation could reshape the Canadian iGaming landscape. The potential entry of Hard Rock Digital and the fate of PointsBet Canada remain key focal points for industry observers and stakeholders alike.
With the licensing process potentially taking up to six months, the coming weeks and months promise to be crucial for all parties involved. As the situation evolves, the impact on Ontario’s iGaming market and the broader Canadian gambling industry remains to be seen.
