While the prospect of single-event fixed-odds sports wagering in Canada may evoke fear of a further diluted gaming market amid some horse racing interests, Woodbine Entertainment CEO Jim Lawson feels optimistic about sports betting's impact on not only the nation's flagship track, but the racing industry as a whole.
At first glance, the legalization of single-event sports wagering in Canada — brought one step closer Tuesday (June 22), when the Senate approved Bill C-218 — would threaten to siphon money out of pari-mutuel pools and into bookmakers' coffers more so than when Ontario Lottery and Gaming introduced their Pro-Line parlay wagering in the 1990s. However, the legislation, which only awaits Royal Assent to become law, specifically prohibits fixed-odds wagering on horse racing and requires provinces and territories to regulate and license gaming operators accepting single-game wagers. Given those provisions, the outlook shifts from bleak to bullish — especially once one considers the leg up racetracks have with their infrastructure and existing relationships with regulatory bodies.
"It's good news for us for a number of reasons," Lawson recently told the Toronto Star. "We have a long-standing relationship with the regulator, AGCO (Alcohol and Gaming Commission of Ontario), experience in any anti-money laundering and responsible gaming, and we have the infrastructure in place to drive the operations that will be key to this business."
Since Ontario's Slots At Racetracks Program was discontinued, Woodbine — and the province's other racetracks — have leased space back to casino operators for their post-SARP gaming activities. That existing arrangement, paired with the 50-plus teletheatres across the province already licensed to accept off-track horse racing wagers, gives the racing industry incredible leverage in the expanding sports betting market.
"People like to bet at sports books," Lawson continued. "They like to physically attend and socialize, they like to go to a sports bar, and no one is set up to do that in this province better than Woodbine Entertainment.
"A company, if it partners with us, is going to have its brand throughout the province and they have 50 ready-made sports books. We have the technology, we have the cash-management, we have regulatory approvals for the locations as wagering locations and generally, we have the most desirable locations."
Furthermore, any sports wagering companies looking to also accept pari-mutuel wagers on horse racing as part of their menu will have to partner with racetracks given the protection Bill C-218 affords horse racing.
While Woodbine Entertainment is unique in the sports betting landscape in that it can work directly in the operation of and offer facilities and infrastructure to support expanded gaming, Lawson believes that Canada's mainstream sports franchises, particularly the seven which compete in the National Hockey League and the nine which comprise the Canadian Football League, can also benefit financially from the new development. An extra $1.5 to $2 million to each CFL team as a result of single-event sports wagering is minor in and of itself, but the expanded market for sponsorships and partnerships — never mind more eyes on CFL games — can generate even more cash flow for the largely gate-driven league.
"They (pro sports franchises) are going to earn sponsorship and exclusive dollars in terms of advertising," Lawson, who also previously served as a CFL executive, explained. "And then they have the opportunity to rent out kiosks, do other ads in the stadium and ultimately increase revenue from game broadcasts as a result of higher viewership."