With the UK government announcing a drastic curb on maximum stakes to £2 for fixed odds betting terminals (FOBT), British bookmakers could now be looking to offset potential losses on that front by taking advantage of the newly regulated sports betting market in the US. Already well positioned to take advantage of what is shaping up to be a huge American betting industry are the likes of Ladbrokes owner GVC and William Hill, while others are preparing to stake their claim for a slice of stateside action.
GVC is already state licensed in New Jersey, Delaware and Nevada and enjoys a working relationship with MGM Resorts International. Unsurprisingly it said that it is “very well placed” to take advantage of a newly regulated landscape. William Hill, meanwhile, is well established in the US with its Nevada licence and predicts that more than 100,000 jobs could be created post-PASPA.
Enter Paddy Power into the fray. The company is currently deep in talks to buy FanDuel, a web-based fantasy sports offering that boasts six million registered users who are able to assemble virtual teams in sports including American football.
The American adventure is one that Britain’s bookies will be keen to take on given the profoundly damaging implications of the cut in FOBT stake. Analysts at Credit Suisse are already predicting major earnings losses for William Hill and Ladbrokes – 40 and 50 per cent respectively.
Hill’s CEO Philip Bowcock commented on the stake cut: “The government has handed us a tough challenge today and it will take some time for the full impact to be understood, for our business, the wider high street and key partners like horse racing. We will continue to evolve our retail business in order to adapt to this change and we will support our colleagues as best we can.”
GVC chief executive Kenneth Alexander commented: “The uncertainty has weighed heavy on the industry and the many thousands of people who work within it. Our focus now is to work with government to build a constructive relationship that will ensure a positive future for the sector and the many millions of customers who enjoy our products responsibly.”
