OpenBet Extends Online Gambling Contract With Loto-Quebec

The Quebec provincial government has taken a lot of flak in the recent weeks. At the core of the issue is its steam rolling attempt to create a monopoly for its own online gambling EspaceJeux, which is operated by Loto-Quebec. However, Loto-Quebec has received staunch support from its software technology provider.

OpenBet has been the software provider for EspaceJeux since its launch in 2010. OpenBet has announced that it has signed a three year extension to their current supplier deal with Loto-Quebec. In addition, OpenBet will also provide EspaceJeux with its now mobile gambling solution which was launched at the end of 2015. OpenBet also has ties with other Canadian provincial lottery monopolies. One of them is the British Columbia Lottery Corporation operated online casino PlayNow, which is powered by OpenBet. OpenBet and British Columbia Lottery Corporation recently expanded their relationship with the launch of sports pools on the PlayNow casino.

The morality of creating a monopoly by enacting legislation to ban its competitors has understandably, for OpenBet, been set aside. EspaceJeux is bound to deliver better financial results as a monopoly and it makes commercial sense for OpenBet to strengthen its association with the online gambling site. A press release from OpenBet has stated that their new Quebec deal is "designed to support the planned changes to regulation within the province that is currently being passed by the authorities." It has been reported that not all competition will be banned under IP Blocking Bill 74. The regulations include the licensing of selected private online operators. It has been speculated that the Quebec authorities will allow Amaya Gaming to legally operate their PokerStars brand in the province.

Canadian law currently prohibits online gambling operators with a physical presence in the country from serving local punters. A consortium of NYX, William Hill and Sky Betting recently acquired OpenBet. Based on the Canadian law, William Hill withdrew their online gambling operations from British Columbia and Manitoba. Amaya Gaming also has an ownership stake in NYX, and therefore control in OpenBet. However, Amaya seems to be getting more involved in the Canadian online gambling space. NYX is looking to get Amaya to switch its Betstars unit to the OpenBet platform. How the legality of all this will unfold it is difficult to predict. But one thing is clear. Those online gambling service providers in favour with provincial monopolies will try to extract mileage from the changing scenario.

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