UK wagering companies bet on US after sports betting wager ruling
bet9ja.com
5 June 2018

By Natalie Sherman

Business reporter, New York

It's high stakes for UK firms as sports betting starts to spread out in America.

From Tuesday, new rules on sports betting entered effect in Delaware, a small east coast state about two hours from Washington.

Neighbouring New Jersey might begin accepting sports betting bets as early as Friday.

The changes are the very first in what could become a wave of legalisation after the Supreme Court last month cleared the method for states to enable sports betting.

The industry sees a "once in a generation" chance to establish a new market in sports betting-mad America, stated Dublin-based monetary expert David Jennings, who heads leisure research study at Davy.

For UK companies, which are coming to grips with combination, increased online competitors and tougher rules from UK regulators, the timing is particularly opportune.

Why the gambling market faces an unpredictable future

How does illegal sports betting work and what are the fears?

But the market says counting on the US remains a risky bet, as UK business deal with complex state-by-state regulation and competitors from entrenched regional interests.

"It's something that we're actually focusing on, however similarly we do not wish to overhype it," said James Midmer, spokesman at Paddy Power Betfair, which recently bought the US fantasy sports betting site FanDuel.
bet9ja.com
'Take time'

The US represented about 23% of the world's $244bn (₤ 182bn) in video gaming revenue last year, according to a report by Technavio, external released in January.

Firms are intending to tap into more of that activity after last month's decision, which struck down a 1992 federal law that disallowed states beyond Nevada and a couple of others from authorising sports betting.

The ruling discovered the law was an over-reach of federal power. But the court it did not really legalise sports betting wagering, that question to regional lawmakers.

That is anticipated to result in considerable variation in how companies get licensed, where sports betting can happen, and which occasions are open to speculation - with big ramifications for the size of the market.

Potential profits ranges from $4.2 bn to almost $20bn yearly depending on aspects like how many states transfer to legalise, Oxford Economics approximated in a 2017 research study for the American Gaming Association.

"There was a great deal of 'this is going to be huge'", said Will Hawkley, London-based head of leisure for experts KPMG.

Now, he stated: "I think many people ... are looking at this as, 'it's an opportunity however it's not going to be $20bn and it's going to be state by state and it's going to take some time'."

'Remains to be seen"

Chris Grove, managing director at Eilers & Krejcik Gaming, anticipates that 32 states will legalise sports betting in some kind by 2023, creating a market with about $6bn in yearly earnings.
bet9ja.com
But bookmakers deal with a far different landscape in America than they do in the UK, where sports betting stores are a frequent sight.

US laws minimal gambling mostly to Native American lands and Nevada's Las Vegas strip until fairly recently.

In the popular imagination, sports betting has long been connected to a 1919 baseball World Series match-fixing scandal.
bit.ly
States have likewise been slow to legalise lots of kinds of online gaming, in spite of a 2011 Justice Department viewpoint that appeared to remove challenges.

While sports betting is generally seen in its own category, "it plainly remains to be seen whether it gets the kind of momentum individuals believe it will," said Keith Miller, law teacher at Drake University and co-author of a book about sports betting policy.

David Carruthers is the former primary executive of BetonSports, who was detained in the US in 2006 for running an offshore online sportsbook and served prison time.
bit.ly
Now an expert, he states UK firms must approach the market carefully, choosing partners with caution and avoiding errors that might result in regulator backlash.

"This is a chance for the American sports betting wagerer ... I'm uncertain whether it is an opportunity for service," he states. "It really depends on the outcome of [state] legislation and how the business operators pursue the chance."

'It will be collaborations'

As legalisation begins, sports betting companies are lobbying to fend off high tax rates, as well as demands by US sports betting leagues, which wish to collect a percentage of income as an "integrity charge".

International companies face the added difficulty of a powerful existing gaming industry, with casino operators, state-run lottos and Native American tribes that are looking for to protect their grass.

Analysts say UK firms will need to strike partnerships, providing their knowledge and innovation in order to make inroads.

They point to SBTech's current announcement that it is offering innovation for Kentucky Derby operator Churchill Downs as an example of the sort of deals most likely to materialise.

"It will be a win-win for everyone, but it will be collaborations and it will be driven by innovation," Mr Hawkley said.

'It will simply depend'

Joe Asher, president at William Hill US, is clear-eyed about the realities.

The company has been purchasing the US market considering that 2011, when it bought three US firms to establish a presence in Nevada.

William Hill now employs about 450 people in the US and has revealed collaborations with gambling establishments in Iowa and New Jersey.

It works as danger manager for the Delaware Lottery and has invested millions alongside a regional designer in a New Jersey horse racing track.

Mr Asher stated William Hill has actually ended up being a home name in Nevada however that's not necessarily the goal all over.

"We definitely plan to have a really substantial brand existence in New Jersey," he said. "In other states, it will just depend on regulation and possibly who our local partner is."

"The US is going to be the most significant sports betting wagering market worldwide," he included. "Obviously that's not going to take place on day one."

More on this story

US ruling opens way for sports betting

14 May 2018

Paddy Power buys dream sports betting website

23 May 2018
bet9ja.com