A senior industry source has revealed that Hard Rock Digital has submitted an application for an igaming licence to the Alcohol and Gaming Commission of Ontario (AGCO), marking another advancement in the possible sale 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 engaged in a bidding competition with Japanese entertainment powerhouse MIXI to acquire the rival firm PointsBet. 

Betr presently possesses 19.9% of PointsBet, establishing it as the company’s primary shareholder. In July 2024, BlueBet Holdings and Betr combined, with BlueBet taking on the Betr name. 

Betr Enhanced Proposal for PointsBet 

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

Recent reports indicate that Betr has enhanced its offer – now totaling AU $360 million (USD $232.4 million), consisting of both cash and shares. In April, MIXI made an offer to acquire for 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 associated with PointsBet’s Canadian operations, contingent upon several conditions precedent.” Hard Rock would disburse US $29.6 million to Betr for PointsBet Canada if everything proceeds as planned. 

As per the industry insider, who has ties with 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, PointsBet Canada and Hard Rock Digital have not made any comments. 

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 serves as the igaming division of Hard Rock International and Seminole Gaming, located in Hollywood, Florida, with additional offices in Austin, Atlantic City, and Toronto. 

According to iGaming Ontario, Ontario currently has 49 licensed operators and 84 gaming sites.