BetMGM Looks Towards Alberta as Doors Set to Open: First Movers Advantage in Full Effect?

BetMGM is Confident in Their Position in Canada

Operators that have experienced thriving performance in the regulated Ontario market are eyeing the doors of Alberta as they set to open. While timelines are still uncertain, the notion that Alberta shifts to a free market for iGaming operators seems to be a foregone conclusion.

The VP of Canada at BetMGM, Scott Woodgate is confident in their positioning when it comes to expanding their footprint to Alberta. In an interview with Canadian Gaming Business he stated “We’re eager to take what we’ve learned in Ontario and then build on our leadership position in Canada. At the same time, we’re very much aware that Alberta has a distinct sports and gaming culture. We look forward to meeting the demands of the Alberta customers. It’s a unique market. We also see the potential for Alberta to become a key omni-channel market for us.”

BetMGM is one of the key operators that has succeeded in capturing significant market share in Ontario thus far. The estimated market share in Ontario held by BetMGM is somewhere around 22%. At the SBC Summit North America in May, this number was referenced by BetMGM CEO, Adam Greenblatt.

Caution to Create an Effective Regulatory Environment

There are still a few unknowns as to how Alberta decided to carry out its plans for a regulated market.
A key unknown is the gaming tax rate the province chooses to employ as this would impact the tune of many operators looking to enter the market. While nothing has been confirmed, many advocates have encouraged the government to replicate the environment of Ontario as much as possible. A tax rate of 20% has proven to be extremely effective when it comes to attracting a diverse set of operators, leading to the abandonment of any gray market providers. Due to this operators are confident that Alberta will create a healthy playing field that will be lucrative to attack.

 

BetMGM has Advantageous Alberta Specific Partnerships in Place

In addition to holding strong market share in the Ontario market, BetMGM also has partnerships in place that can be very valuable in Alberta.

In June of 2021 Wayne Gretzky an Alberta native became an ambassador for BetMGM. They also have a partnership with Connor McDavid. These two hockey players are the most famous athletes to come out of Alberta and will have strong influence within the province. These partnerships show BetMGM’s dedication to the Alberta market in the years prior to launch.

Woodgate noted, “It’s a good-sized market. There are strong incomes, a young and growing population. It’s a great hockey market. It checks a lot of boxes.”

BetMGM’s success in Ontario and brand visibility from advertising spillover makes the traditional “first-mover advantage” in Alberta less relevant. However, its strong brand recognition and distinct partnerships still positions it for success when the market opens.