UK and European Gambling Powerhouses Target the USA

Since a change in the legislation governing who commands the power to control sports betting in the states, a slew of the largest UK and European gambling companies have been making plans to rapidly enter the US market. Most recently, William Hill have got in on the action. They join the likes of Paddy Power and Bet365 in establishing deals with various institutions to offer betting services in sports-mad America.

What’s Changed?

In May of this year, the US Supreme Court overturned legislation that was signed back in 1992. The law stated that it was up to the Federal Government to decide on whether sports betting should be allowed or not. It was recently held that this was unconstitutional, and it should be a matter for the states themselves to rule if they want to offer sports betting.

The opportunity presented to both companies based in the US and those already operating in established markets is a “once in a generation” one, according to financial analyst David Jennings of research firm Davy.

The first state to pounce on the opportunity was Delaware. They announced new rules on sports betting in early June. This was followed by New Jersey and others. The managing director at Eilers & Krejcik Gaming believes that a total of 32 states will have legalised sports betting within the next five years. This could create a potentially colossal new market worth between $4.2 billion and $20 billion per year according to estimates made by Oxford Economics in 2017.

Exciting times for US punters?

UK Gambling Firms Lead the Charge into the Fresh US Market

With such a large potential market waiting, it’s understandable that established companies from outside of American want in on the action.

The most recent company to announce large US expansion is William Hill. The well-respected British bookmaker confirmed earlier this month that they plan to partner with 11 casinos in Mississippi, one in West Virginia, and are currently trying to secure similar deals in an additional 14 states. Their CEO, Philip Bowcock, said the firm was hoping that such partnerships would help mitigate the impact of the recent clampdown on the controversial fixed odds betting terminals that have recently seen their maximum stakes slashed by legislation in the UK.

William Hill are hoping to provide sports betting risk management services, as well as on-premises betting services at a plethora of established casinos in the US. This includes deals with the Hard Rock Hotel and Casino Biloxi. It’s believed that the company will have operations up and running by the end of August of this year.

The long-established bookmaker already has sports betting operations in gambling-friendly Nevada, as well as Delaware, New Jersey, and Iowa. Bowcock continued:

“In the US, it is a very exciting time, but it is not going to be without its challenges… an established US business has been an advantage for us post-PASPA. We’ve barely scratched the surface and it’s a very exciting time ahead.”

In addition to William Hill, other heavy weights of the UK gambling scene have been making inroads into the new market. In July, the massive online betting and gaming company Bet365 signed a partnership deal with the Hard Rock Hotel & Casino Atlantic City, with the intention of offering sports betting across the state of New Jersey.

Elsewhere, Paddy Power Betfair recently bought the US fantasy sports website FanDuel. A spokesperson for the conglomerate stated the following about their moves into the US market:

"It's something that we're really focusing on, but equally we don't want to overhype it.”

Not All Plain Sailing

Despite the potentially colossal profitability awaiting UK and European bookmakers setting up shop in the US market, it won’t be entirely straightforward for them. Firstly, they face a wildly varying legislative landscape. Since each state is now legally entitled to come up with its own rules, there will likely be completely different legal requirements for each jurisdiction that a company wants to move into. This will certainly present difficulties when devising workable strategies for each state.

In addition, there is the small matter of the established US gambling firms who will also want to eat up as much of the new market as possible.

Will US Powerhouses Take It Lying Down?

Many of the states likely to legalise sports betting in the next few years have long-established companies that will defend their interests to as great an extent as possible. Some have casino operators who would love to expand into offering sports betting services. Elsewhere there are the Native American tribes who have long held the monopoly on gambling services. Even the more conservative states have state-run lotteries who are likely eying a move into the new market. How domestic firms take such an expansion by US companies remains to be seen. However, we're sure that America’s big gambling conglomerates won't take this lying down.

An Exciting Time for Punters

One thing is for sure, the change in legislation will bring about an exciting time for US gamblers. The nation has long had a love affair with the pastime and it’s no secret how much the public adore their sports. With existing companies from the US and further afield looking to offer their products in the nation, we’re positive that the next few years will see some tremendous success stories and the new legislation is certainly a victory from freedom in the United States.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.