American market, although there have been various reasons for the approaches that have already been made by some.
Of course, the opportunity is a huge factor and reason as to why many have decided to try and enter the market. However, there have been other reasons such as their experience in the market that has given them a reason to get involved with gambling operations stateside.
Simply trying to buy knowledge
With legislation having been passed in recent years and even more US states starting the process to pass certain bills and legislations that will allow for them to permit legal gambling, many have turned to those across the Atlantic for help as they look to try and set things up from the beginning without having to encounter too many teething problems. There are some US states that have already started to successfully integrate their betting operations, with betting apps in CO available for players based there.
Essentially, things such as the pandemic that has been experienced by all sections of the world have meant market conditions have become favorable for US firms to try and simply buy the knowledge that established UK gambling operators have. Furthermore, the impact of Brexit on those with operations in the United Kingdom may have cut their profit margins, therefore giving them the opportunity to get involved in the US market may have proven too difficult to resist for some.
Indeed, the likes of Entain have already been approached by Las Vegas gambling behemoth, MGM Resorts International over a deal that saw the company that handle betting brands such as Coral, Ladbrokes and Sportingbet valued at around £8.1 billion rejected. However, Entain have also revealed that they had received proposals from their joint venture partner already in the US market, about a possible offer.
William Hill has already been acquired
There has been precedent for a UK gambling firm to move into the US market, with William Hill having already been acquired by Caesars Entertainment in a deal worth a reported £2.9 billion in late September 2020.
It was said at the time by Caesar Entertainment’s chief executive, Tom Reeg, that the opportunity to combine all aspects of their business – online, physical and sports betting offerings – provided them with a truly exciting prospect.
Flutter Entertainment have also been subject to interest stateside, with the gaming operator having revealed that their US operations were continuing to go from strength to strength over each quarter – despite everything that was currently going on in the world. The firm – who own brands such as Paddy Power, Betfair and a host of others – saw their revenue in the US increase by 83% to £161 million.
Opportunity is too good to turn down
That figure alone would have been enough to attract other UK gambling firms to take on the US market, whilst the new legislation to have been brought in would have provided them with an opportunity that proves far too good to turn down.
Sports betting in the US has continued to grow at astronomical rates ever since the 2018 Supreme Court ruling that was provided and it would not be a surprise if some of the UK gambling operators looked to try and take a slice of the pie available. For instance, the US gambling market size in 2026 is estimated to be worth around $77.42 billion.
As mentioned, William Hill, Flutter Entertainment and Entain have already started to build strong market positions where possible with some key strategic partnerships being put in place with those already with strong positions in the land-based casino sphere.
