“ While the initial rush towards licensing has somewhat subsided , new technologies , platforms and ideas such as esports and peer-to-peer wagering continue to impact the market , and many regulators have welcomed them . This has created new opportunities for both operators and B2B companies .”
— CJ Fisher , Gaming Department Co-chair , Fox Rothschild LLP property . The Malta-based firm subsequently secured business-to-consumer ( B2C ) licenses from regulators in Pennsylvania , Indiana , Virginia , Arizona and Washington before receiving analogous clearance for the Canadian province of Ontario .
Manuel Stan , the North America general manager for Kindred Group , explains that the iGaming market of the United States has some comparable particularities that stand out , including a provision that often requires B2C providers to partner with a local casino , racetrack or sports club before gaining market access .
“ Another notable difference is the limited number of licenses in certain states , which when combined with the market access requirement , result in a different route to entering a market versus the European ‘ more open ’ model ,” Stan says .
Future Form
Despite these hurdles , Stan believes that the American online casino and sports betting scene remains a very attractive prospect , as it is on pace to become the largest market in the world , and will hold alluring potential for any operator with global ambitions . He adds that this draw could be improved even further should large states such as California , Florida and Texas begin licensing online casino and sports betting entertainment .
“ The early years in the United States provided a good indication of what is to come ,” Stan says . “ The increased rollouts of online casino gaming and regulation in some of the key states like California , Texas and Florida are likely to be the main drivers for future growth . Mobile sports betting is currently not regulated in states that represent almost 50 percent of the country ’ s gross domestic product , while online casino gaming is not regulated in jurisdictions accounting for nearly 90 pecent of this metric . The size of the market is likely to show a significant growth in the next few years simply based on geographical and product expansion .”
Careful Consideration
Evolution is a B2B online casino supplier that began offering its portfolio of live-dealer innovations to New Jersey players in 2018 before opening its inaugural United States studio in Atlantic City . The company ’ s North America chief commercial officer , Jeff Millar , asserts that this initial move was a carefully considered long-term project that had encompassed a great deal of work .
“ For us , the decision to get involved in the United States market was an easy one as we were already a world leader in live casino and there was then the challenge of being a frontrunner in one of the most exciting gaming markets on the planet ,” Millar says . “ Our main goal from day one hasn ’ t changed — to be the first online casino supplier to go live as soon as each state opens and , where permitted , with a fully operational live casino studio to offer world-class games tailored to each region of North America .”
Evolution today offers its live-dealer games to players in New Jersey , Pennsylvania , Michigan and Connecticut and claims that its American games portfolio has been greatly extended so as to offer operators an unparalleled mix of innovative live game shows and casino classics .
“ Evolution is known as a B2B live casino partner that ’ s alive to every opportunity and this includes new and re-regulating markets , which we monitor closely ,” Millar says . “ In fact , we ’ ve built a reputation for being first to market in numerous jurisdictions .”
Attractive Aspects
CJ Fisher , gaming department co-chair for Atlantic City-headquartered Fox Rothschild LLP , agrees that it still makes sense for foreign firms to enter the American online casino and sports betting market even though the associated licensing requirements can often be seen as arduous .
He adds that obligations in some jurisdictions are nevertheless more reasonable compared to others while certain B2B providers may qualify for a lower level of license that is less burdensome .
“ From an operator perspective , merger and acquisition activities may also result in the availability of additional skins / market access , which could make market entry costs more reasonable , while skins are not required in some jurisdictions such as Tennessee ,” Fisher says . “ There were a variety of first movers into the United States ’ online sports betting market such as DraftKings , BetMGM and FanDuel on the operator side and Sportradar AG on the B2B side . These companies generally benefited from being experienced and regulated companies that could leverage existing customer databases and operations to help launch into the United States iGaming market .”
Lucrative Links
Fisher states that Fox Rothschild LLP has been helping foreign online casino and sports betting firms for over a decade to overcome a variety of transactional , operational , licensing , compliance and regulatory matters so as to secure licenses and go-live approvals in multiple jurisdictions throughout the U . S .
He says his enterprise ’ s former clients have run the gamut from Wynn Resorts Limited , MGM Resorts International and Hard Rock International to Mojo Interactive , Xpoint and Yahoo Sports .
Citing research from the American Gaming Association , Fisher explains that the U . S . market is furthermore attracting interest because its aggregated 2022 revenues from online casino and sports betting grew by over 50 percent year-on-year , although land-based receipts remained relatively static . Jurisdictions with legalized sports wagering added to this appeal as over 90 percent of their $ 7.5 billion in win was generated remotely , and takings from online
20 Global Gaming Business AUGUST 2023