UK wagering firms gamble on US after sports betting wager ruling
bet9ja.com
5 June 2018

By Natalie Sherman

Business reporter, New york city

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

From Tuesday, new rules on sports betting entered into effect in Delaware, a small east coast state about 2 hours from Washington.

Neighbouring New Jersey might begin 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 method for states to permit sports betting wagering.

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

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

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But the market says counting on the US remains a dangerous bet, as UK companies face complicated state-by-state policy and competitors from entrenched local interests.

"It's something that we're truly focusing on, however equally we don't want to overhype it," said James Midmer, representative at Paddy Power Betfair, which recently acquired the US fantasy sports betting website FanDuel.
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'Take some time'

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

Firms are wishing to use more of that activity after last month's decision, which struck down a 1992 federal law that disallowed states outside of Nevada and a few others from authorising sports betting wagering.

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

That is expected to result in considerable variation in how firms get accredited, where sports betting wagering can occur, and which occasions are open to speculation - with huge ramifications for the size of the market.
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Potential revenue ranges from $4.2 bn to almost $20bn annually depending upon factors like the number of 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 huge'", said Will Hawkley, London-based head of leisure for consultants KPMG.

Now, he stated: "I think the majority of people ... are taking a look at this as, 'it's a chance 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, handling director at Eilers & Krejcik Gaming, anticipates that 32 states will legalise sports betting wagering in some form by 2023, developing a market with about $6bn in annual earnings.

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

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

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

States have actually likewise been sluggish to legalise lots of forms of online sports betting, in spite of a 2011 Justice Department opinion that appeared to get rid of barriers.

While sports betting is normally viewed in its own classification, "it plainly stays to be seen whether it gets the sort of momentum people think it will," stated Keith Miller, law professor at Drake University and co-author of a book about sports betting wagering policy.

David Carruthers is the previous president of BetonSports, who was jailed in the US in 2006 for running an overseas online sportsbook and served prison time.
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Now a specialist, he says UK firms ought to approach the marketplace thoroughly, selecting partners with caution and preventing errors that might lead to regulator reaction.

"This is a chance for the American sports betting wagerer ... I'm uncertain whether it is an opportunity for organization," he says. "It truly depends on the result 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 desire to collect a portion of income as an "integrity fee".

International business deal with the added challenge of a powerful existing video gaming market, with casino operators, state-run lotteries and Native American tribes that are looking for to defend their turf.

Analysts state UK firms will require to strike partnerships, offering their knowledge and innovation in order to make inroads.

They indicate SBTech's recent announcement that it is supplying 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 everybody, however it will be collaborations and it will be driven by innovation," Mr Hawkley stated.

'It will just depend'

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

The business has been buying the US market given that 2011, when it acquired 3 US companies to establish an existence in Nevada.

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

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

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

"We definitely mean to have a really considerable brand existence in New Jersey," he said. "In other states, it will simply depend on policy and potentially who our regional partner is."

"The US is going to be the most significant sports betting worldwide," he included. "Obviously that's not going to occur on the first day."

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