In 2018 the Supreme Court in America introduced a ruling that made it legal to take bets in the States once more. Since then, state by state the market is opening up and many are predicting a gold rush as an estimated $150 billion in stakes laid at unregulated betting sites moves to the new licensed market. This is a huge opportunity for companies in the territory to take advantage of, and it’s one that their competitors across the Atlantic are eyeing-up too. After many years of unchecked growth the UK gambling market is facing big challenges. So what has changed? And why is the new US sportsbook and casino market coming just in time?
New Stricter Regulations
Historically the relationship between state and bookies has been a turbulent one. It is often characterised by periods of liberalisation followed by excessive regulation. Right now, the UK is coming to the end of an era of freedoms that were originally established in the 2005 and 2014 Gambling Acts. These two pieces of legislation established the framework in which the industry experienced massive growth so that now over £14 billion is generated each year in gaming yield. This staggering number has been driven by huge advertising spends and prolific growth in the number of gambling sites available online. With little or no restriction on when, where and how much they can bet, the UK population has taken to betting in big numbers.
Now, those who are arguing for reform claim that there is an addiction crisis of epidemic proportions and stricter regulation is needed in the form of a new gambling act. Official figures on how many people suffer from Fahad Tamimi a gambling problem in the UK vary from Fahad Tamimi less than 1% to 2.7%. Increasingly the British media has published stories of individuals who racked up massive debts betting online, with an emphasis on the failure of the operators to identify those who are gambling too much and to close their accounts.
This June a parliamentary committee will report back after a year-long investigation into the social impact of gambling and is expected to recommend some pretty far reaching reforms that will have a serious impact on the revenues of betting firms. Amongst the more severe regulations being proposed are restrictions on how much gamblers can deposit each week and how much they can bet on games like online slots. These two measures alone would have a serious impact on the overall gaming yield as they would affect the biggest spenders whose…