Betting on (and in) the future

When we launched this newsletter 14 weeks ago, we were throwing logs on the fireplace at The Parleh’s editorial headquarters (OK, we were simply clicking the remote on the electric fireplace) and trying to get the lay of the land. Bill C-218 was five letters and three numbers with a hyphen, we wondered what the hell was Bet99 and when did Georges St-Pierre get a head of hair, and clubhouse was something you saw on YouTube videos of The Little Rascals.

Three and a half months later, Bill C-218 is Senate-approval away from (essentially) legalizing single-event sports betting, stakeholders are figuring out their strategy to benefit from an open regulated market sports betting, and the SPACs are being swallowing up smaller betting tech and media to shore up their position in a brave new world. 

Leagues that once saw sports betting as the devil (see, NHL, MLB, NFL, etc., etc, etc.) now embrace what they see as the latest golden goose (also, revenue stream) through partnerships and selling their data. Teams are partnering with gaming operators, putting up in-arena signage and housing betting venues on the premises. Media companies are joining forces with sportsbooks and broadcasters are delivering betting information in tandem with live games. 

Wrote ESPN’s David Purdum on his excellent deep dive into three years since PASPA’s repeal: “Bookmakers are turning themselves into sports entertainment, multimedia outlets, complete with award-winning journalists and celebrity talking heads -- while, at the same time, taking bets on the games they're covering.

“Meanwhile, American bettors are lapping it up, wagering on everything from Ukrainian table tennis to boxing matches on YouTube. In March alone, $4 billion was bet with U.S. sportsbooks, the most ever in a single month.”

As Purdum notes, along with sports betting advisor Sara Slane in an op-ed for Sportico and Bill Miller at The Hill, the business of legal sports betting is just getting started.

“. . . .. we also must recognize that just because millions of Americans have shifted their wagering to the legal market, it doesn’t mean everyone has made the switch,” wrote Hill in his piece. “Many people still make bets with their corner bookie or an offshore betting site. 

“Prior to the expansion of legal sports betting, Americans wagered an estimated $150 billion in the underground market every year. In 2020, nearly $21 billion was bet through legal channels, which indicates there is still much work to close the gap.”

In Canada, anyone with skin in the game is ready to stake a claim to a relatively untapped market. Ontario, in particular, where the provincial government is expected to operate an open licensing and regulation business, is seen as one of the most lucrative opportunities in all of North America - on par with states such as Illinois and Pennsylvania.

“That’s when you’ll see massive disruption really taking hold, and it probably doesn’t look anything like it does today,” John Levy, Chairman/Founder/CEO of Score Media and Gaming Inc., told The Parleh during an interview on Monday.

If the first few years of legalized betting in the US are any indication, the Canadian market can expect to see the only constant there is: change.

“This space will, to be sure, grow so fast and furiously,” added Dr. Cheri Bradish, the founder and managing director of the Future of Sport Lab at Ryerson University. “If we follow trends in the (U.S.), this industry will look completely different in three years, especially as customers get more comfortable with (sports betting) and sport venues open up.”

We’re excited to be along for the ride.