bit.ly
UK sports betting firms bet on US after sports betting wager ruling
5 June 2018
bit.ly
By Natalie Sherman
Business press reporter, New york city
It's high stakes for UK companies as sports betting starts to spread in America.
From Tuesday, brand-new rules on wagering entered into impact in Delaware, a tiny 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 allow sports betting wagering.
The market sees a "when in a generation" chance to develop a brand-new market in sports betting-mad America, said Dublin-based financial analyst David Jennings, who heads leisure research study at Davy.
For UK firms, which are coming to grips with consolidation, increased online competitors and tougher guidelines from UK regulators, the timing is particularly appropriate.
Why the sports betting industry faces an unsure future
How does prohibited sports betting work and what are the fears?
But the market states depending on the US stays a dangerous bet, as UK business deal with complicated state-by-state guideline and competition from established regional interests.
"It's something that we're really concentrating on, but similarly we don't wish to overhype it," stated James Midmer, spokesman at Paddy Power Betfair, which recently acquired the US dream sports betting website FanDuel.
'Take time'
The US accounted for about 23% of the world's $244bn (₤ 182bn) in gaming revenue last year, according to a report by Technavio, external published in January.
Firms are wanting to take advantage of more of that activity after last month's decision, which struck down a 1992 federal law that disallowed states beyond Nevada and a few others from authorising sports betting.
The judgment found the law was an over-reach of federal power. But the court it did not actually legalise sports betting, leaving that concern to local lawmakers.
That is expected to cause substantial variation in how companies get certified, where sports betting can take place, and which events are open to speculation - with big ramifications for the size of the marketplace.
Potential revenue varieties from $4.2 bn to nearly $20bn yearly depending upon elements like how many states move to legalise, Oxford Economics approximated in a 2017 study for the American Gaming Association.
"There was a lot of 'this is going to be big'", said Will Hawkley, London-based head of leisure for experts KPMG.
Now, he said: "I think many people ... are taking a look at this as, 'it's a chance however it's not going to be $20bn and it's going to be state by state and it's going to take time'."
'Remains to be seen"
Chris Grove, handling director at Eilers & Krejcik Gaming, anticipates that 32 states will legalise sports betting wagering in some type by 2023, producing a market with about $6bn in annual profits.
But bookmakers face a far different landscape in America than they perform in the UK, where wagering shops are a regular sight.
US laws limited sports betting mainly to Native American lands and Nevada's Las Vegas strip till reasonably recently.
In the popular creativity, sports betting has long been connected to a 1919 baseball World Series match-fixing scandal.
States have likewise been slow to legalise numerous forms of online gaming, regardless of a 2011 Justice Department viewpoint that appeared to get rid of challenges.
While sports betting is generally seen in its own category, "it plainly stays to be seen whether it gets the type of momentum individuals believe it will," said Keith Miller, law teacher at Drake University and co-author of a book about sports betting wagering policy.
David Carruthers is the previous chief executive of BetonSports, who was arrested in the US in 2006 for running an offshore online sportsbook and served prison time.
Now a consultant, he states UK firms ought to approach the marketplace carefully, selecting partners with caution and avoiding bad moves that could lead to regulator reaction.
"This is a chance for the American sports betting gambler ... I'm not sure whether it is an opportunity for service," he states. "It truly depends on the outcome of [state] legislation and how the organization operators pursue the opportunity."
'It will be partnerships'
As legalisation begins, sports betting companies are lobbying to ward off high tax rates, along with requests by US sports betting leagues, which wish to collect a percentage of profits as an "stability fee".
International business face the added obstacle of a powerful existing gaming market, with casino operators, state-run lottos and Native American people that are seeking to safeguard their grass.
Analysts state UK companies will need to strike partnerships, offering their expertise and technology in order to make inroads.
They indicate SBTech's current announcement that it is offering technology for Kentucky Derby operator Churchill Downs as an example of the kind of offers most likely to materialise.
"It will be a win-win for everyone, however it will be collaborations and it will be driven by innovation," Mr Hawkley stated.
'It will just depend'
Joe Asher, president at William Hill US, is clear-eyed about the realities.
The business has been buying the US market considering that 2011, when it purchased three US firms to develop an existence in Nevada.
William Hill now uses about 450 people in the US and has revealed partnerships with casinos in Iowa and New Jersey.
It works as threat manager for the Delaware Lottery and has invested millions along with a local developer in a New Jersey horse racing track.
Mr Asher said William Hill has ended up being a home name in Nevada but that's not necessarily the goal everywhere.
"We definitely plan to have a very significant brand presence in New Jersey," he stated. "In other states, it will simply depend upon guideline and possibly who our is."
"The US is going to be the greatest sports betting market on the planet," he added. "Obviously that's not going to occur on day one."
More on this story
US ruling opens way for sports betting
14 May 2018
bet9ja.com
Paddy Power buys dream sports betting site
23 May 2018
1
UK Betting Firms Gamble on uS After Sports Wager Ruling
cecilwager8347 edited this page 2024-12-18 05:03:02 +00:00