Northern Exposure: Basketball Dominates Olympic Betting Handle At BetMGM

Greg Warren
Written by: Greg Warren

Each week, Canada Sports Betting recaps all the top sports betting and iGaming news in Canada and highlights upcoming events.

Our top stories this week

NorthStar Reports Second Quarter Financials

NorthStar Gaming (NorthStar Bets) released its second-quarter financials earlier this week for the three and six-month periods that ended June 30, 2024.

Some of the financial highlights for the second quarter ended June 30, 2024 include:

  • Revenue (including managed services fees, net of bonuses, promotional costs and free bets) reached $7.5 million in Q2 2024, a 61% increase from $4.6 million in Q2 2023.
  • Total Wagers at Northstarbets.ca were $225.5 million in Q2 2024, a 41% increase compared to $160.1 million in Q2 2023.
  • Gross Gaming Revenue at NorthStarbets.ca was $8.7 million in Q2 2024, a 58% increase from $5.5 million in Q2 2023.
  • Gross Margin was $3.2 million in Q2 2024, representing a 69% increase from $1.9 million in Q2 2023, which accounted for approximately 42% of revenue, up from 40% in Q2 2023.

And the highlights for the six-month period ended June 30, 2024:

  • Revenue (including managed services fees, net of bonuses, promotional costs and free bets) totalled $13.4 million, a 62% increase from $8.3 million in the six months ended June 30, 2023 (“YTD 2023”).
  • Total Wagers at Northstarbets.ca reached $443.5 million, a 48% increase compared to $300.3 million in YTD 2023.
  • Gross Gaming Revenue at NorthStarbets.ca was $16.3 million, a 65% increase from $9.9 million in YTD 2023.
  • Gross Margin was $5.4 million, marking a 77% increase from $3.0 million in YTD 2023, and represented approximately 40% of revenue, up from 37% in the comparable period of 2023.

“We are building on our momentum with another record quarter highlighted by growth in excess of 60% for both revenue and gross margin,” said Chair and CEO of NorthStar Michael Moskowitz in the release. “Importantly, top line growth continues to outpace expenses as we leverage our existing resources to scale the business efficiently, demonstrating the considerable upside in our business model.

“Just over two years since the launch of NorthStar Bets, our online betting platform stands strong against major international competitors. Our premium offering has enabled us to outperform the Ontario market on key metrics like total wagers and gross gaming revenue. As we continue to innovate and provide unique content and outstanding customer service, we are enthusiastic about our prospects for continued growth.”

The company is also reporting A 48% year-over-year increase in active players in Q2 2024, a 12% decline in the cost per acquisition of a customer (CPA), and a 7% rise in estimated 12-month player values. Northstar also says it has outpaced the industry-wide year-over-year growth rates reported by iGaming Ontario for Q2 2024 in both Total Wagers (41% for NorthStar vs. 32% for the industry) and Gross Gaming Revenue (58% for NorthStar vs. 34% for the industry).

NorthStar Bets is one of CSB’s preferred sportsbooks, and it’s available all across Canada.

BetMGM reports historic Olympic handle

Bettors loved betting on the 2024 Olympic Games this year at BetMGM, according to some recent media insights obtained by CSB from the operator.

“This was the most bet Olympics in BetMGM history with basketball, tennis, and soccer leading the way as the most-bet sports,” said BetMGM senior trader Tristan Davis. “It was a successful event for the sportsbook, even with the USA’s high gold and total medal counts.”

BetMGM says three times more bets came pouring in than the 2020 Summer Olympic Games and seven times more bets than the 2022 Winter Olympics. However, the basketball competition accounted for a whopping 54% of the total Olympic handle at the sportsbook. In fact, the top 10 most-bet Olympic events were all from the men’s and women’s basketball competitions, with the overwhelming majority of them involving American teams. Canada’s clash with France in the men’s basketball quarterfinals also made the most-bet list.

BetMGM says the best outcome for bettors from the Games was Scottie Scheffler claiming gold (+400 odds) in the men’s golf competition. Roughly 30% of the money was on Scheffler to win prior to the start of the tournament.

Some notable longshot bets that cashed include:

  • Canada (+3300) winning 4x100m men’s relay.
  • Nicolo Martinenghi (+3300) winning 100m men’s breaststroke.
  • Kristen Faulkner +3300 winning women’s road race (cycling).

In other BetMGM news, the operator launched its Wheel of Fortune online casino in Ontario this week.

“Bringing Wheel of Fortune Casino to Ontario is a part of our strategy to give players the games they love and create an engaging experience with an iconic game show,” said BetMGM’s Chief Revenue Officer Matt Prevost. “In collaboration with Sony Pictures Television and IGT, we’ve created something that is unlike anything else in the online gaming sector. Wheel of Fortune slots have been top-performing games for decades, and through a successful launch in New Jersey, we’ve found that the brand-led Wheel of Fortune Casino product is a winning formula that resonates with players.”

Wheel of Fortune Online Casino in Ontario includes over 1600 games, including slots, progressive jackpots, and table games, with more titles to be regularly added.

Otton to retire

The Executive Director of iGaming Ontario, Martha Otton, will retire from her role on Dec. 31, 2024, iGO announced Thursday.

Otton played a crucial executive role in getting Ontario’s regulated igaming and sports betting market launched in April 2022 alongside the Alcohol and Gaming Commission of Ontario, the Ontario Lottery and Gaming Corporation, and the provincial government. She has helped lead iGO since 2021.

“On behalf of the entire Board, I extend my sincere appreciation for Martha’s leadership of iGaming Ontario. She has left an impressive legacy across her career, and in particular to Ontario’s gaming sector. Ontario’s competitive igaming market is testament to her visionary leadership and commitment to working with our operators and broader stakeholders,” said Chair of iGaming Ontario’s Board of Directors Heidi Reinhart.

Otton previously served as the Chief Strategy Officer for the AGCO for nine years before moving over to iGO. Prior to that, she also held roles with the Ministory of the Attorney General and Legal Aid Ontario.

The Board of Directors will now begin the search for a new Executive Director.

Segev LLP Opens Alberta Office

One of the top law firms specializing in gaming and gambling law is expanding its services to the province of Alberta ahead of the launch of a new regulated online gambling market in the coming months.

Segev LLP announced this week it’s opening an office in Alberta to assist current and future clients with any legal needs ahead of the launch. The firm boasts a roster of roughly 23 lawyers across Alberta, Vancounver, Toronto, and the United States with a presence that also extends to India.

“We try to anticipate the needs of current and future clients and being able to service those needs in Alberta will become a greater priority for many of them,” said Ron Segev, the firm’s founding partner and a specialized gaming and betting lawyer.

Segev LLP has been ranked in the Chambers and Partners 2024 Guide as a top tier firm for Gaming and Licensing, and Ron has been rated as a Band 1 gaming lawyer – the highest ranking offered by Chambers and Partners.

The Alberta provincial government is working hard to establish the framework for a competitive online gambling market like the one already established in Ontario. It intends to launch later this year or early next year. It will be an open market, so the number of operators able to do business in the province won’t be capped.