FDJ is handing over the keys
The Ontario Lottery and Gaming Corporation (OLG) is getting a new sportsbook provider for the next seven years. Française des Jeux (FDJ) has selected Kambi to inherit its contract with OLG. So, what exactly does this mean for Ontario’s sports betting market and OLG’s most popular brand, Proline?
Why is FDJ selling its contract?
FDJ is in the process of refocusing its business towards B2C operations, and according to the company, the move away from offering its services to OLG is in line with this refocus.
That being the case, on July 1st, France’s 2025 Social Security Financing Act will increase fees on betting and gaming in the country. This will affect FDJ negatively.
The company expects the new taxes will cost it $67 million by the end of the year. While FDJ denies it, the new Act may have influenced the company’s decision to step away from the contract and make way for Kambi’s takeover.
Who is Kambi?
Kambi offers premium gambling tools and sports betting services for the world’s leading sportsbooks. The company was founded in 2010 in Sweden, but is based in Malta, and is partnered with more than 40 operators across five continents. Kambi is now one of the most trusted sports betting suppliers globally.
Products ranging from full turnkey sportsbook platforms to individual frontend solutions have given Kambi a reputation for reliability and innovation. It is now bringing that reputation to Ontario in a big way.
What does this mean for OLG and the Ontario market?
Bringing Kambi’s state-of-the-art services, user-friendly interfaces, and far-reaching network into the mix for OLG will be a big positive for the company’s hold on the Ontario sports betting market in the face of an intensely competitive and growing industry.
There are still T’s to cross and I’s to dot, but in the second half of the year, when the contract is in place, Kambi is planning to install its platform for the Ontario market. This will help fulfill the agreement, which stipulates that, to assume the contract, Kambi must make “a material initial investment.”
About 20% of Ontario’s regulated online casino and sports betting market is held by OLG. Kambi isn’t making this move for any other reason than to grow that 20%, and the Ontario market can, therefore, expect big upgrades from the supplier. Such upgrades are likely to include giving OLG’s most recognized brand, Proline, a massive facelift with additional analytics and improved betting tools.
What does this mean for Kambi?
Kambi knows what it is getting itself into: Ontario is one of the world’s most competitive online gaming markets, and Kambi already has a presence powering sportsbooks for many casinos in the province, including BetRivers and Fallsview Casino.
Now begins Kambi’s great Ontario expansion.
“OLG has a fantastic reputation in the Canadian province of Ontario where, until recently, it held the monopoly for sports betting,” Kambi CEO Werner Becher explained during the company’s recent earnings update.
Becher went on to highlight how the company has “an exciting growth opportunity” with OLG’s online retail business despite the increased competition: “I believe with a sportsbook of Kambi’s quality, combined with OLG’s local market knowledge and reputation, OLG can grow its online market share.”
Exciting for Ontario fans of sports betting
Becher made clear how “exciting” it is to partner with a company the size of OLG. Fans of sports betting might be the ones to get most excited though, as Kambi’s takeover of OLG’s sportsbook is sure to “raise the bar” of an already rising Ontario sports betting market.