iGaming Business magazine iGB 111 July/Aug | Page 77

Feature
Taking a long-term view
Speaking of unregulated markets, what about the offshore
sportsbooks? Will they continue to target the US market as
assiduously as they’ve been doing for the past 20 years?
Yes, says former California regulator Schuetz: “Foreign operators
should understand that the US has not been going without
betting, it has only been going without regulated betting.
There are huge sums presently wagered every day in the US,
and the foreign operators are going to want to present their US
counterparts a model that the US is accustomed to and where
the product is attractive.”
This is where the industry’s lobbying powers will come
to the fore, as they point out to state legislators the
disadvantages of high taxes or costly regulations (they’ll lead
to poorer prices with the burden being passed on to the players,
resulting in many of them going to look for alternative offers
with the offshore books). And although payouts will be faster
with a licensed sportsbook, for many players it won’t make that
big a difference.
As mentioned at the start of the article, for all the comment the
US Supreme Court’s decision has generated there is no way of
knowing how the US betting market will pan out. Much will also
depend on how the biggest states, California, New York et al,
approach the issue or if the sports leagues manage to get the
federal government involved as they keep pushing for an integrity
fee to be enforced throughout the country. And while all suppliers
are criss-crossing the country to meet with US prospects, attributes
such as adaptability, patience and long-term strategic thinking
will all be needed.
“The US will be a slow burn with individual states wanting to
get each aspect – tax rates, integrity measures, product restrictions
and consumer protection – right at the first time of asking,”
says Matt Stephenson.
“And although payouts will be faster
with a licensed [than an offshore]
sportsbook, for many players
it won’t make that big a difference”
Without doubt lessons will be learned, from existing regulations
in New Jersey as much as those that come into effect in newer
states such as Pennsylvania, that will dictate the shape of the
market for the next five to 10 years and beyond.
What is clear is that European businesses have a massive
opportunity in the US, if they work on the long-term needs of
US operators and provide them with technology and services
that allow them to differentiate. But as Stephenson says,
“it would be a mistake to think this is an easy task”.
Out of the blocks…
As soon as the US Supreme Court’s decision was announced the race was on to be the first supplier to announce a deal with
a US company. Below are some of the main runners and riders…
• S
 BTech’s agreement with major US player Churchill Downs will see the Sofia-based supplier provide CDI with its integrated
technology platform for sports betting and igaming solutions across the US.
• C
 DI then issued its own press release in early June outlining its agreement to supply Golden Nugget with a sports and gaming
solutions platform.
• P
 addy Power Betfair merging its US entity with DFS big-hitter Fan Duel will provide the FTSE-listed operator with a database
of keen sports fans that it will look to activate. PPB paid out US$158m for a 61% share of Fan Duel. “This combination creates the
industry’s largest online business in the US, with a large sports-focused customer base and an extensive nationwide footprint,”
said chief executive Peter Jackson.
• G
 VC announced in early June that its US sports betting platform Stadium Technology Group (STG) would be “powering the
first single-game sports bets accepted in the US state of Delaware”. STG already provides betting software in 16 of the 20
licensed sportsbooks in Nevada, and the group said its ability to get to market fast with proven and compliant technology was
a key advantage.
• S
 cientific Games-Openbet said it would support the expansion of full-scale sports betting in the state. The Delaware Lottery’s
sports betting provider is also supporting the William Hill rollout at Monmouth Park racetrack as the UK bookie expands
beyond Nevada. Industry contacts have also confirmed that SG-Openbet is in contract talks with a number of major US
multi-state casino groups.
iGamingBusiness | Issue 111 | July/August 2018
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