PENN Entertainment and Betway Eye Alberta as Key Market

On PENN Entertainment's Q2 2024 earnings call, CEO Jay Snowden highlighted Alberta's upcoming regulated gaming market as a major opportunity for the company's theScore Bet brand.

Snowden anticipates Alberta will be "a top three or four" market for the Canadian-centric brand when it enters the region, expected in late 2024 or early 2025.

Snowden emphasized theScore Bet's strong potential in Alberta, citing the brand's success in Ontario.

"With both online sports betting and iCasino, we expect Alberta to be a very strong market for us given the power of the theScore Bet brand," he stated.

He also noted the widespread popularity of theScore across Canada, not just in Ontario.

Experts agree that Alberta presents a significant opportunity.

Although the Alberta government has not yet disclosed the tax rates for the new market, industry advocates suggest a rate similar to Ontario's 20% for commercial online gaming and betting operators.

Higher rates could deter potential entrants.

At the Canadian Gaming Summit in June, operators, suppliers, regulators, and consultants agreed that Alberta offers vast potential as a commercial market.

Several companies, including PointsBet and Super Group, have already expressed interest in entering the Alberta market.

Betway, a brand with a visible presence in Alberta due to its NHL partnership, is also poised to take advantage of the new market.

Super Group CEO Neal Menashe, speaking on the company's Q2 earnings call, confirmed Betway's readiness for Alberta's regulation.

"In Canada, obviously, there is regulation coming in Alberta. We are super ready for it," Menashe said.

Super Group reported its strongest quarter ever, with revenue hitting €415 million (CAD 622 million), a 9% increase from the previous year.

Betway's revenue grew by 7.6% year-on-year to €246 million (CAD 369 million), with the North American market playing a significant role in this growth.

Betway has been actively advertising in Alberta for years despite the province's current monopoly under the Alberta Gaming, Liquor and Cannabis' Play Alberta platform.

Its partnership with the NHL has ensured prominent visibility during Edmonton Oilers games, including during the Stanley Cup Final broadcasts, which reached 25.4 million Canadians.

With the imminent opening of Alberta's regulated gaming market, companies like theScore Bet and Betway are positioned to capitalize on their existing brand recognition and strategic preparations.

The transition to a regulated market in Alberta is expected to bring significant growth and competition in the online sports betting and iCasino sectors.