UK sports betting companies bet on US after sports betting wager judgment
bet9ja.com
5 June 2018
bet9ja.com
By Natalie Sherman

Business reporter, New york city
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It's high stakes for UK firms as sports betting wagering starts to spread out in America.

From Tuesday, new guidelines on wagering came into result 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 modifications are the very first in what could end up being a wave of legalisation after the Supreme Court last month cleared the way for states to allow sports betting.

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

For UK companies, which are facing consolidation, increased online competitors and tougher guidelines from UK regulators, the timing is especially appropriate.

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But the industry says relying on the US remains a dangerous bet, as UK business face complex state-by-state regulation and competition from entrenched local interests.

"It's something that we're actually focusing on, however equally we do not want to overhype it," stated James Midmer, representative at Paddy Power Betfair, which recently purchased the US fantasy sports betting website FanDuel.

'Take time'

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

Firms are hoping to take advantage of more of that activity after last month's decision, which overruled a 1992 federal law that disallowed states outside of Nevada and a few others from authorising sports betting.

The the law was an over-reach of federal power. But the court it did not in fact legalise sports betting, leaving that concern to local lawmakers.

That is expected to result in substantial variation in how firms get certified, where sports betting wagering can take place, and which occasions are open to speculation - with big ramifications for the size of the marketplace.

Potential profits ranges from $4.2 bn to practically $20bn annually depending upon elements like the number of states relocate 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'", stated Will Hawkley, London-based head of leisure for experts KPMG.

Now, he said: "I believe the majority of 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 some time'."

'Remains to be seen"

Chris Grove, managing director at Eilers & Krejcik Gaming, predicts that 32 states will legalise sports betting in some kind by 2023, creating a market with about $6bn in annual earnings.

But bookies face a far various landscape in America than they perform in the UK, where wagering shops are a frequent sight.

US laws restricted gaming mostly to Native American lands and Nevada's Las Vegas strip up until fairly just recently.

In the popular creativity, sports betting has long been linked to a 1919 baseball World Series match-fixing scandal.

States have also been sluggish to legalise lots of types of online sports betting, in spite of a 2011 Justice Department opinion that appeared to remove obstacles.

While sports betting is usually viewed in its own classification, "it plainly stays to be seen whether it gets the type of momentum individuals believe it will," said Keith Miller, law professor at Drake University and co-author of a book about sports betting wagering regulation.

David Carruthers is the previous president of BetonSports, who was arrested in the US in 2006 for running an overseas online sportsbook and served prison time.

Now a consultant, he states UK companies need to approach the market carefully, selecting partners with care and avoiding bad moves that could cause regulator backlash.

"This is an opportunity for the American sports betting gambler ... I'm not exactly sure whether it is an opportunity for business," he says. "It truly depends on the outcome of [state] legislation and how business operators pursue the opportunity."

'It will be collaborations'

As legalisation starts, sports betting companies are lobbying to fend off high tax rates, in addition to requests by US sports betting leagues, which want to collect a portion of revenue as an "integrity cost".

International companies face the included difficulty of an effective existing video gaming market, with casino operators, state-run lottery games and Native American people that are looking for to protect their grass.

Analysts state UK companies will need to strike partnerships, using their competence and technology in order to make inroads.

They indicate SBTech's current statement that it is providing innovation for Kentucky Derby operator Churchill Downs as an example of the sort 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.
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'It will simply depend'

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

The company has actually been buying the US market since 2011, when it bought three US companies to develop a presence in Nevada.

William Hill now employs about 450 individuals in the US and has announced collaborations with casinos in Iowa and New Jersey.

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

Mr Asher said William Hill has actually become a family name in Nevada but that's not necessarily the goal all over.

"We certainly intend to have a very substantial brand existence in New Jersey," he said. "In other states, it will simply depend on policy and possibly who our regional partner is."

"The US is going to be the biggest sports betting wagering market in the world," he added. "Obviously that's not going to happen on the first day."

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