Headsup's foray into Canada will likely launch a similar frenzy of M and A activity.
Canada's massive market is being shaped by mergers that will give the model a very clear and functional shape in 2021.
Headsup's Hybridisation
Ex-Canadian Poker Tour owner HeadsUp Entertainment is leading the charge with M and A discussions ahead of entry into the regulated Canadian sports betting market in 2021.
New Leader Takes Reins
To prepare, the group recently appointed Doug Wilson president and chief executive of its Calgary Headquarters. Wilson will launch a player acquisition campaign by delivering HeadsUp media content in the first week of January in preparation for liberalisation of the country's gambling laws by the spring.
Merger Candidates
Now, to streamline and distinguish its reach, HeadsUp is in talks with two sportsbook software providers and a strategic media partner for a potential merger or acquisition.
Organisational Strategy
Wilson illuminated his organisation's strategic continuum:
“The rapidly evolving opportunities in the Canadian market, as well as in other countries, are very encouraging and our team has been anticipating licensing and government regulation that we are strategically poised to take advantage of.”
Legislative Landscape
As far as the legislative environment, the Canadian federal government this past November 2020
introduced a regulation model to the House of Commons. If passing both the House and Senate, bill C-2018 would legalise single-game sports wagering across Canada's 10 provinces and three territories. The bill should pass in spring 2021.
The $14b Pie
Of the developments, HeadsUp said:
“The forthcoming legislation and subsequent changes to the Criminal Code of Canada will allow for HeadsUp to be positioned for rapid growth, taking to market platforms in sports betting, into an industry estimated to be over $14bn in annual gross gaming revenue as estimated by the Canadian Gaming Association.”
Adapting Policy
HeadsUp is shaping its organisational decisions based on meeting the standards of the regional market, as evinced most recently by the company's decision not to acquire Curacao-licensed online gaming business VIP Entertainment Group because of concerns about being perceived by US or Canadian regulators as owning shares in a grey market operation.
Outlook
With the US and Canadian markets opening, look for a lot of organisations to focus on optimising their eligibility for the massive new opportunities these markets represent.
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