It’s now the turn for gambling operators to place their bets.
On May 14th, 2018 something truly significant happened in the global gambling industry. After prolonged debate and speculation, the United States’ Supreme Court repealed the Professional and Amateur Sports Protection Act (also known as PASPA or the Bradley Act) following a protracted challenge from the state of New Jersey. PASPA had hitherto prevented states from legalising online sports betting.
Betting bosses were quick to describe the ruling as a “landmark moment” and ” transformational” for the global betting industry. The stock market agreed with share prices of both London and Stockholm-listed operators soaring to reflect the potentially huge new opportunity. The latest forecasts from H2 Gambling Capital predict that the U.S online betting market* will grow from $0.24bn in 2017 to nearly $5bn in 2023.
All of this has happened during a period when the UK gambling market is under increased regulatory scrutiny and facing higher levels of taxation. At the same time, regulatory frameworks for online gambling are being put in place across several European markets. For many operators this presents growth opportunities but also increases costs. These dynamics have only reinforced the view that, despite several false dawns in the past, the industry’s next big jackpot is on the other side of the Atlantic.
As a result, there has already been a goldrush on the U.S. market. European operators – who possess the online know-how that the U.S land-based casino operators have not yet developed – are seeking to leverage their technology and marketing skills to capture a slice of this potentially hugely lucrative pie.
Big bets are now being placed across betting operators’ Board rooms. Several high-profile, high-stakes partnerships have already been struck as operators formulate their strategies and jostle for prime position. All eyes are on who plays their hand next.
The future of the U.S Gambling Market will be a hot topic at G2E, the landmark global gambling conference, taking place in Nevada in October. Hudson Sandler will be in attendance talking to operators, journalists and analysts about their views on the market’s prospects. We will be blogging, tweeting and vlogging during the event. If you are also attending and would like to meet up, email the team here.