As per a high-ranking industry insider, Hard Rock Digital has submitted an application to the Alcohol and Gaming Commission of Ontario (AGCO) for an igaming licence, advancing the possible acquisition of PointsBet Canada. 

USD $232 Million Proposal 

As we mentioned earlier this week, Betr Entertainment's efforts to acquire PointsBet Holdings Ltd., located in Melbourne, Australia, are directly linked to the future of PointsBet Canada. 

Betr is presently engaged in a bidding competition with Japanese entertainment powerhouse MIXI to acquire the competing firm PointsBet. 

Betr now holds 19.9% of PointsBet, positioning it as the largest shareholder of the company. In July 2024, BlueBet Holdings and Betr combined forces, with BlueBet taking on the Betr name. 

Betr Enhanced Proposal for PointsBet 

In February, PointsBet’s board released a statement announcing their acceptance of a MIXI takeover offer. The board was worried that Betr's offer relied more on acquiring debt. 

Recent reports indicate that Betr has enhanced its offer – an overall amount of AU $360 million (USD $232.4 million), consisting of cash and stock. In April, MIXI made a takeover offer of AU $350 million. 

As part of Betr's new proposal, they intend to sell PointsBet Canada, with Hard Rock as the purchaser. A Betr news announcement on April 29 verified this: “We have obtained a non-binding offer from Seminole Hard Rock Digital, LLC to purchase specific assets linked to PointsBet’s Canadian operations, contingent on several conditions.” If everything proceeds as intended, Hard Rock would compensate Betr with US $29.6 million for PointsBet Canada. 

As per the industry source, who has ties to Hard Rock:

"Hard Rock is applying for a license in Ontario. The Hard Rock deal is contingent on Betr buying PointsBet Australia and divesting the Canadian business but the only news I’ve seen says it involves selling the customer database, which only makes sense if a license application is in the works. It can take six months or more to get a license [in Ontario].”

Divesting PointsBet Canada As A Component of Offer 

So far, there has been no statement from PointsBet Canada or Hard Rock Digital. 

Last week, a representative from AGCO stated:

"We can confirm that there are igaming operator applications in progress for AGCO registration. The company you have referenced [Hard Rock] has not applied for registration.”

Hard Rock Digital is the online gaming division of Hard Rock International and Seminole Gaming, based in Hollywood, Florida, with locations in Austin, Atlantic City, and Toronto. 

As per iGaming Ontario, there are presently 49 licensed operators and 84 gaming sites in Ontario.