And they’re off!
Packed with euphoria and full of promise, last week started off in similar fashion to the prestigious Grand National race, as the US Supreme Court declared the federal ban on sportsbetting to be unconstitutional.
In a market that is projected to be worth approx. $6bn by 2023, operators, investors and payment processors alike watched in anticipation as the share prices increased overnight.
This has led everyone to speculate who will do what and when.
Merchants have been positioning themselves waiting for this very moment to raise awareness of their brands; whether through partnerships in the legalised states or via other channels such as fantasy sports.
That early groundwork will enable them to get a head start on the competition and we’ve already seen announcements from operators in the past few days with many more to come.
As per the Grand National, there will be a few early pace setters whilst the rest of the pack will sit back and wait patiently for their moment to strike. History taught us that things will move slowly in the US when it comes to gaming, however, New Jersey has decided to set its stall out early and said it hopes to be offering sports betting within the next couple of weeks.
Just in time for a certain Global sporting event that sadly for them the USA team is not partaking in.
So, as the race starts to get interesting and the crowd are getting excited by the prospect of a big win – they reach jump 22 – Becher's Brook. Or in the case of last week’s UKGC (UK Gambling Commission) announcement that RGD (Remote Gaming Duty) will be increased. Just like this jump often catches runners by surprise, many within the gaming industry may have been shocked by this announcement, but should they?
The reason for the increase is due to the maximum stakes on FOBT’s (Fixed Odds Betting Terminals) being reduced from £100 to £2. This is not new news and has been coming for over a year. The reduction will have financial implications for operators, expected to be over £100m per year (in some cases) and the UK Government in lost tax revenue.
This means all parties will need to make up the shortfall and it has come as no surprise that the Government will be raising the RGD as a result. Anyone with a UK licence will feel the pinch, not just those with betting shops. It may lead to closures on the high street and could force some operators to turn their focus elsewhere.
The leading runners will no doubt be affected by both announcements, but the question is who will sail over Becher's Brook, who will fall and more excitingly who will be the surprise package coming through the pack?