US Gambling Industry Looking for Expansion Overseas
Before a crucial ruling in 2018 by a US Supreme Court judge, betting on sport was not legal in many states. That ruling has changed the industry dramatically and now some US gambling companies are looking outside of the US to expand their businesses.
The three years that have followed has seen many states take the plunge and legalize sports gambling. There are still plenty that haven’t done so but it’s as certain as loving apple pie that the majority will make the move in the direction of legalization.
For the governors and legislators, it’s not all about a sudden desire to place a bet on the NFL or NBA. It’s the thought of all that tax revenue that can come flying in their direction. Millions of dollars helping an American economy struggling through the pandemic.
Gamblers can now legally place bets, rather than rely on offshore accounts. For those who run the sportsbooks, it’s a different story. It’s a time to open up in an increasing number of states and expand their business. They must spend most of their time listening to the news for updates on which state will be the next to legalize gambling.
Companies such as DraftKings, Caesars Entertainment and MGM Resorts International have been busy opening sportsbooks around the country including NY. This 8.5 million metropolis with rich residents and thousands of tourists is a tasty morsel, reports BET NewYork. It’s not always a case of doing it all on your lonesome though.
Caesars Entertainment partnered with British bookmakers William Hill. They have had decades of experience with betting shops and in recent years an online presence too. Caesars took the partnership a bit further though.
This year saw them purchasing William Hill in a deal believed to be worth $2.9 billion. They then decided that their knowledge of running the European side of the business wasn’t a strong point of theirs. Recently, the non-US assets of William Hill were sold to 888 Holdings.
MGM International Resorts also fancy expanding their business outside the US. This year saw a failed bid to purchase Entain. They own established businesses such as Ladbrokes, Coral, PartyPoker, Bwin and Sportingbet. Get control of that and DraftKings will find themselves moving up the ladder of importance in the worldwide gambling industry.
Their offer didn’t get accepted as Entain believe it was well below the valuation they give to their business. The US interest in Entain hasn’t ended there though. CNBC report that DraftKings are also interested in purchasing Entain and have made a $20 billion offer.
It’s just another sign of the everchanging US gambling industry. US companies aren’t going to be content with just opening more sportsbooks on their home territory. They want to expand into other areas around the globe.
Years of waiting for the US to finally change the rules have been frustrating ones. DraftKings and FanDuel have both enjoyed success in the Fantasy field but seen US states unable to legalize sports betting. Now the floodgates have opened, the desire to make all that revenue that is available from betting on US and international sports has arrived.
The NFL season has just started and that’s going to see millions of dollars being wagered each and every week. The Super Bowl is a festival of betting opportunities, and the new sportsbooks will do all they can with special offers to get as much custom as they can. It all makes for an exciting time for the US gambling industry.
