In a follow-up to a story PlayOntario published Monday, FanDuel’s director of publicity Kevin Hennessy has provided details about why the company is ending Daily Fantasy Sports in Ontario as of April 1.
The reason is as expected. Canada considers DFS sports betting. Yet, Ontario rules allow companies only to take bets from people in the province. Ontario DFS players would only be allowed to participate against others from the province.
FanDuel is registered with the Alcohol and Gaming Commission of Ontario to conduct sports betting in the province. The company plans to offer sports wagering on or shortly after the April 4 launch of an open market.
“The regulated gaming market in Ontario, set to launch on April 4, explicitly includes fantasy contests,” Hennessey wrote in an email to PlayOntario. “Unfortunately, games offered in the regulated market currently cannot include shared liquidity with other jurisdictions — meaning Ontario players would only be able to play against other Ontario players. Contests would need to be smaller, with significantly smaller prizing. With our years of experience in the DFS market, FanDuel knows such a product would not be attractive to our Ontario players.”
FanDuel business decision
FanDuel made “a business decision,” Hennessy said of ending DFS in Ontario for now. “We did not feel that we would be able to offer a product that meets FanDuel’s high standards for daily fantasy sports. We would only be able to offer small prize pools without the shared liquidity of the other provinces or the United States. Therefore, we have made a business decision to switch off our DFS product in Ontario on April 1.”
Further, Hennessy said the AGCO, “was very helpful. We just felt that if we could not offer DFS contests with customers from the US and other Canadian provinces contributing entry fees to make sure the prize pool could be appealing to our customers.
“It was a tough decision, but in the end, we did not feel like we could offer a world class product in Ontario that meets FanDuel’s high standards. We are still operating DFS in other Canadian provinces.”