UK wagering firms bet on US after sports betting wager ruling
bet9ja.com
5 June 2018
By Natalie Sherman
Business press reporter, New York
It's high stakes for UK companies as sports betting starts to spread in America.
From Tuesday, new rules on sports betting came into impact in Delaware, a tiny east coast state about two hours from Washington.
Neighbouring New Jersey might start accepting sports betting bets as early as Friday.
The changes are the first in what could become a wave of legalisation after the Supreme Court last month cleared the method for states to permit sports betting wagering.
The industry sees a "once in a generation" chance to establish a new market in sports betting-mad America, stated Dublin-based financial analyst David Jennings, who heads leisure research at Davy.
For UK companies, which are coming to grips with debt consolidation, increased online competition and harder rules from UK regulators, the timing is especially appropriate.
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But the industry states relying on the US remains a risky bet, as UK business deal with complicated state-by-state regulation and competition from established local interests.
"It's something that we're truly concentrating on, however equally we do not desire to overhype it," stated James Midmer, representative at Paddy Power Betfair, which recently acquired the US fantasy sports betting website FanDuel.
'Require time'
The US accounted for about 23% of the world's $244bn (₤ 182bn) in gaming earnings last year, according to a report by Technavio, external published in January.
Firms are wanting to tap into more of that activity after last month's choice, which overruled a 1992 federal law that barred states beyond Nevada and a few others from authorising sports betting.
The ruling discovered the law was an over-reach of federal power. But the court it did not in fact legalise sports betting wagering, leaving that question to local legislators.
That is anticipated to result in significant variation in how firms get licensed, where sports betting can take place, and which occasions are open to speculation - with big ramifications for the size of the market.
Potential income ranges from $4.2 bn to almost $20bn annually depending upon elements like the number of states transfer to legalise, Oxford Economics estimated in a 2017 study for the American Gaming Association.
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"There was a lot of 'this is going to be huge'", stated Will Hawkley, London-based head of leisure for specialists KPMG.
Now, he stated: "I believe many people ... are looking at this as, 'it's an opportunity but 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, forecasts that 32 states will legalise sports betting wagering in some form by 2023, producing a market with about $6bn in yearly income.
But bookies face a far various landscape in America than they do in the UK, where sports betting shops are a regular sight.
US laws restricted sports betting largely to Native American lands and Nevada's Las Vegas strip until relatively recently.
In the popular imagination, sports betting wagering has actually long been linked to a 1919 baseball World Series match-fixing scandal.
States have actually likewise been slow to legalise many types of online sports betting, in spite of a 2011 Justice Department opinion that appeared to get rid of barriers.
While sports betting is generally seen in its own category, "it plainly stays to be seen whether it gets the type of momentum people believe it will," stated Keith Miller, law teacher at Drake University and co-author of a book about sports betting guideline.
David Carruthers is the previous president of BetonSports, who was jailed in the US in 2006 for running an overseas online sportsbook and served jail time.
Now a consultant, he states UK firms should approach the marketplace thoroughly, selecting partners with care and avoiding bad moves that could cause regulator reaction.
"This is an opportunity for the American sports betting wagerer ... I'm uncertain whether it is a chance for company," he says. "It really is dependent on the result of [state] legislation and how the company operators pursue the opportunity."
'It will be collaborations'
As legalisation starts, sports betting wagering companies are lobbying to fend off high tax rates, as well as demands by US sports betting leagues, which want to gather a percentage of profits as an " fee".
International business face the included challenge of an effective existing video gaming market, with gambling establishment operators, state-run lottery games and Native American tribes that are looking for to defend their turf.
Analysts say UK firms will need to strike partnerships, using their know-how and technology in order to make inroads.
They indicate SBTech's current statement that it is offering technology for Kentucky Derby operator Churchill Downs as an example of the kind of offers likely to materialise.
"It will be a win-win for everyone, but it will be partnerships and it will be driven by technology," Mr Hawkley said.
'It will simply depend'
Joe Asher, president at William Hill US, is clear-eyed about the truths.
The company has actually been purchasing the US market considering that 2011, when it purchased three US companies to develop an existence in Nevada.
William Hill now utilizes about 450 individuals in the US and has actually revealed partnerships with casinos in Iowa and New Jersey.
It works as threat supervisor for the Delaware Lottery and has invested millions together with a local designer in a New Jersey horse racing track.
Mr Asher said William Hill has ended up being a household name in Nevada but that's not always the objective everywhere.
"We definitely intend to have a very substantial brand existence in New Jersey," he stated. "In other states, it will simply depend on policy and possibly who our local partner is."
"The US is going to be the most significant sports betting market worldwide," he included. "Obviously that's not going to take place on the first day."
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UK Betting Firms Gamble on United States After Sports Wager Ruling
pollys00444080 edited this page 2024-12-31 14:48:44 +08:00