Industry figures puzzled by Coolbet's agreement with PGA of Canada
In a surprising move, Coolbet has become the new official betting partner of the Professional Golfers' Association (PGA) and the RBC PGA Scramble. This partnership, announced on April 8, 2025, will see Coolbet offering exclusive promotions and contests for PGA members and participants in the scramble.
The RBC PGA Scramble, a grassroots team golf event with over 12,000 amateur golfers playing annually, is set to host its National Final at Cabot Cape Breton from October 4-8. The partnership between Coolbet and the PGA of Canada is focused on delivering messages directly to the golf community through access to over 2,000 golf courses across Canada.
Coolbet's commitment to transparency and responsible gaming was a significant factor in the partnership. The company plans to enhance the experience for PGA members, offering innovative odds for PGA Championships and promoting responsible gambling education. However, the partnership raises questions about the weakness in Canada's legal enforcement against unlicensed sportsbooks.
Grey market operators like Coolbet and BetRegal operate in Canada's unregulated iGaming market despite lacking provincial licenses. This is due to several factors, including the legal and regulatory landscape, provincial regulatory differences, enforcement challenges, and market responses.
Canadian gambling is regulated at the provincial level under the Criminal Code, which authorizes provinces to "conduct and manage" gambling activities. Offshore sportsbooks and unlicensed operators are not permitted under this framework, yet grey market operators remain accessible online to Canadian players because the Canadian market is fragmented by province, and enforcement varies widely.
Provincial differences in regulation lead to significant player bases being exposed to grey market operators. For example, Ontario has a regulated market with licensed operators, successfully channeling 84% of players to legal sites. In contrast, provinces like Quebec, Alberta, British Columbia, and Atlantic Canada have much lower channelization rates (between 10% to 27%), leaving significant player bases exposed to grey market operators.
Enforcement challenges also play a role. While some provinces are cracking down on illegal operators, grey market operators continue to serve Canadians by restricting their services in provinces where enforcement is stronger but remaining available in others. Grey market operators benefit from operating offshore, outside Canadian jurisdiction, complicating enforcement efforts.
In British Columbia, an industry source estimates the market share for the British Columbia Lottery Corporation and its PlayNow iGaming platform at 25%. However, the size of the grey market in provinces where only the lotteries operate legally is a matter of debate.
The partnership between PGA of Canada and Coolbet is a partnership that Lalani plans to keep an eye on. It's worth noting that BetRegal announced a similar deal with the PGA of Canada in 2022, but never launched in Ontario, and those partnerships have since expired.
The deal comes amidst Coolbet's withdrawal from the Ontario iGaming market in May 2023. In provinces like British Columbia, where the government maintains a monopoly on online gambling, private operators continue to lobby for legalization and regulation to compete with grey market sites.
This partnership between Coolbet and PGA of Canada underscores the complexity of Canada's iGaming market and the challenges faced by regulators in maintaining a level playing field. As the market evolves, it remains to be seen how partnerships like these will shape the future of iGaming in Canada.
Coolbet, as the new betting partner of the PGA of Canada, aims to deliver messages directly to the golf community and enhance the experience for PGA members, offering innovative odds for PGA Championships and promoting responsible gambling education. This partnership, however, raises questions about the weakness in Canada's legal enforcement against unlicensed sportsbooks, with grey market operators like Coolbet operating in the unregulated iGaming market.
