Coolbet Announces Withdrawal from Ontario Market
LISTEN TO THIS ARTICLE:Despite having only entered the Canadian iGaming market last April, after securing a license from iGaming Ontario, GAN brand, Coolbet has announced that it will be ceasing operations in the territory from March 22.
The day before, it will turn off all depositing permissions on its site, which means players with credit will have a decision to make - the minimum withdrawals for Interac being $1 and $0.01 for Trustly.
However, those that have bets which cannot be settled because they are either futures or parlays, with the outcome yet to be decided, will have their stakes refunded in full, and on March 23 and bonus funds will be released from related wagering requirements.
We strongly encourage you to withdraw your funds as soon as possible.
In case you have not made any withdrawals before, we would require you to verify your bank account, which will be used to pay out your remaining balance.
Once you have requested the withdrawal, please check your email for further instructions on how to complete the verification.
What Has Motivated the Decision to Leave?
While a number of reasons could be speculated about Coolbet's decision to leave the Ontario market, especially after such a short period of time, this has since been made clear by the company.
The company is focused on maximizing profitability and investing capital and resources into only the highest return regions.
Unfortunately, given the competitive nature of the market and the heightened promotional environment we didn’t see a near-term path to profitability, so we are reallocating our resources elsewhere.
Such a decision to withdraw could well have a knock-on effect for the Ontario market. Other smaller brands may seriously question whether they will want to renew their license in what has become one of the most competitive markets in less than a year since it became regulated.
These brands are, of course, competing with the heavyweights which seemingly dominate the space, these being FanDuel, DraftKings, BetMGM, and Caesars - as a result, it is particularly hard for smaller brands to acquire even a five percent share of the market.
Currently, Ontario charges brands 20 percent of their revenue from a taxation perspective, while it costs $100,000 per year for a license in the province. While for the behemoths, this is easily achievable, for the likes of Coolbet, it requires an astute business decision.
However, following the withdrawal from Ontario, it will allow the brand to focus on more realistic opportunities, with its presence growing considerably in the LATAM market.
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