British bookmakers attack in the United States

When the US Supreme Court struck down a 25-year federal ban on sports betting last May, it opened a huge opportunity not only for sports fans, but also for British bookmakers.

Some estimates suggest that the market could reach $ 19 billion in revenue by 2023, a leader of the gaming company describing it as a gold rush.

According to the American Gaming Association, up to $ 150 billion a year were illegal sports betting in the United States prior to the decision.

New Jersey and Delaware were the first states to legalize state-wide sports betting in June. Next are Mississippi, West Virginia, New Mexico, Pennsylvania and Rhode Island.

Many of Britain's leading bookmakers have partnered with US groups or opened up other routes to the market that hopefully will help ease the difficulties closer to home.

In May, Dublin-based bookmaker PaddyPower Betfair announced the first major partnership with a US company taking a 60% stake in fantasy sports site Fantasy. Prior to the May decision, FanDuel had 8 million customers in 41 states. "This has provided us with a core customer base in many jurisdictions," said General Manager Kip Levin.

GVC, owner of Ladbrokes Coral, has signed a $ 200 million joint venture with MGM casinos to create Roar Digital, which will provide sports betting at all MGM casinos, and William Hill, already present in Nevada, accepted a $ 50 million equity purchase agreement with casino operator Eldorado in September.

The 888 gaming operator was launched in New Jersey, primarily in the online market, which has so far only been legalized in two other states: West Virginia and Pennsylvania. Other states have first legalized the retail sale.

"It's like any American gold rush," said Yaniv Sherman, business development manager at 888. "The people who are making money at the moment are the ones who sells picks and picks. "888 expected his patented technology to give him an edge when other companies turn to third-party vendors for their online businesses.

Online sports betting was legalized in New Jersey in August, and in December, digital betting accounted for 76% of bets, according to state data. William Hill is expected to launch his own technology later this year.

The opening of the US market has come at a convenient time for gaming companies based in the UK. On 1 April, a £ 100 to £ 2 reduction in fixed-odds betting terminals – a kind of electronic slot machine – could lead to the closure of more than 2,000 bookstores. To compensate for the tax loss suffered by the government, the UK Treasury has also increased taxes on digital game revenues.

However, there are risks. No one knows when other states will open their doors, although New York is expected this year, and none of the UK companies have yet been able to make a profit in the United States.

GVC CEO Kenny Alexander said he expects the company to lose £ 4-5 million this year in the United States. Morgan Stanley badysts predict losses of 49 million pounds sterling for PaddyPower.

"If the opportunity is as big as they think, they should invest and make losses," said Michael Mitchell, equity badyst at Davy.

But investors are wary. Since the outbreak of the decision in May, the actions of all British bookmakers have lost their value, largely because of difficulties in the domestic market. A British industry leader said that US investors were not attracting as much appetite as expected. "They will probably wait for the numbers to increase," he said.

But bookmakers remain dynamic. The same leader said the Americans were sports bettors: "There are more sports nuts in America than in the UK. And they naturally have confidence in their ability to predict results. "