1 UK Betting Firms Gamble on United States After Sports Wager Ruling
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UK sports betting firms bet on US after sports betting wager judgment
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5 June 2018
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By Natalie Sherman

Business reporter, New york city

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

From Tuesday, brand-new guidelines on sports betting entered result in Delaware, a small east coast state about 2 hours from Washington.

Neighbouring New Jersey could begin accepting sports betting bets as early as Friday.

The modifications are the first in what could become a wave of legalisation after the Supreme Court last month cleared the way for states to enable sports betting.

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

For UK companies, which are facing consolidation, increased online competition and tougher rules from UK regulators, the timing is especially opportune.

Why the betting industry faces an unsure future

How does illegal sports betting wagering work and what are the worries?

But the says counting on the US remains a dangerous bet, as UK companies face complex state-by-state regulation and competition from entrenched regional interests.

"It's something that we're actually focusing on, but equally we do not wish to overhype it," said James Midmer, spokesman at Paddy Power Betfair, which recently acquired the US fantasy sports betting website FanDuel.

'Take time'

The US represented about 23% of the world's $244bn (₤ 182bn) in gaming revenue in 2015, according to a report by Technavio, external released in January.

Firms are wanting to use 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 wagering.

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

That is expected to result in substantial variation in how companies get licensed, where sports betting wagering can occur, and which events are open to speculation - with huge implications for the size of the market.

Potential profits ranges from $4.2 bn to nearly $20bn yearly depending upon elements like the number of states relocate to legalise, Oxford Economics estimated in a 2017 study for the American Gaming Association.

"There was a great deal of 'this is going to be substantial'", said Will Hawkley, London-based head of leisure for specialists KPMG.

Now, he stated: "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 time'."

'Remains to be seen"

Chris Grove, managing director at Eilers & Krejcik Gaming, predicts that 32 states will legalise sports betting wagering in some form by 2023, producing a market with about $6bn in yearly income.

But bookmakers deal with a far various landscape in America than they carry out in the UK, where wagering shops are a regular sight.

US laws limited gaming mainly to Native American lands and Nevada's Las Vegas strip up until relatively just recently.

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

States have actually likewise been slow to legalise lots of types of online sports betting, despite a 2011 Justice Department opinion that appeared to get rid of challenges.

While sports betting wagering is typically viewed in its own classification, "it clearly remains 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 wagering guideline.

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

Now a consultant, he says UK companies must approach the marketplace carefully, choosing partners with care and preventing missteps that could lead to regulator backlash.

"This is an opportunity for the American sports betting wagerer ... I'm not sure whether it is a chance for organization," he states. "It actually 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, in addition to requests by US sports betting leagues, which wish to collect a portion of income as an "integrity cost".

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

Analysts say UK companies will need to strike collaborations, using their knowledge and technology in order to make inroads.

They indicate SBTech's recent announcement that it is offering technology for Kentucky Derby operator Churchill Downs as an example of the sort of offers likely to materialise.

"It will be a win-win for everybody, however it will be collaborations 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.
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The business has actually been investing in the US market considering that 2011, when it bought three US firms to develop a presence in Nevada.

William Hill now uses about 450 people in the US and has actually revealed collaborations with gambling establishments in Iowa and New Jersey.

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

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

"We certainly plan to have an extremely significant brand name existence in New Jersey," he said. "In other states, it will simply depend on guideline and potentially who our regional partner is."

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

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