NHL Alumni Association Sues PointsBet Canada Over Contract Breach

The NHL Alumni Association (NHLAA) has made a significant move by initiating legal action against PointsBet Canada, seeking $1.1 million in damages for an alleged breach of contract.

The lawsuit asserts that PointsBet prematurely terminated a multi-year sponsorship deal in the wake of changes in Ontario's sports betting advertising regulations.

As reported by Rick Westhead of TSN, the NHLAA filed the lawsuit on Jan. 18 in the Ontario Superior Court.

The suit firmly maintains that PointsBet is bound to uphold the terms of the sponsorship agreement until Jan. 1, 2026, irrespective of regulatory changes in Ontario.

The dispute arises from a four-year deal signed in January 2022, granting PointsBet exclusive marketing rights to retired NHL players in North America for advertising and promotions.

However, the Alcohol and Gaming Commission of Ontario (AGCO) introduced a significant rule change in November 2023.

This change prohibited gambling companies from using active or retired athletes for advertising, except for promoting responsible gambling.

PointsBet, citing this as a 'force majeure event', informed NHLAA President Glenn Healy of the contract termination on Nov. 10, 2023.

In response, the NHLAA argues that the contract remains binding as long as PointsBet operates in Canada or the U.S.

The lawsuit reveals that PointsBet agreed to pay an annual license fee and contribute to player remuneration for marketing purposes.

PointsBet declined to comment on the allegations when contacted by Canadian Gaming Business.

The NHLAA partnership was among several agreements PointsBet Canada secured before and after its launch in the Ontario market.

Despite regulatory challenges, PointsBet remains committed to its sports betting partnerships, including with major sports teams like the Toronto Maple Leafs and the Toronto Raptors.

While PointsBet sought to exit the agreement, other sportsbooks, like BetMGM, demonstrated their resilience by adapting their advertising strategies to comply with regulations.

BetMGM modified its marketing approach, placing a strong emphasis on responsible gambling with the endorsement of NHL star Connor McDavid.

The NHLAA lawsuit underscores the challenges faced by gaming companies in navigating evolving regulatory landscapes while maintaining sponsorships and marketing strategies.