It’s recently been announced that Pennsylvanian authorities have principally approved a bill to legalise online gambling. This could represent a huge breakthrough in the U.S. iGaming market, which has seen its growth stall since Delaware became the third state to legalise virtual gambling at the end of 2013.
- Pennsylvanian authorities have approved a bill to legalise online gambling
- The news comes after New Jersey announced record-breaking yearly revenues of over $200 million
- UK brands are set to be given the opportunity to negotiate deals with the U.S market
This is also arguably the ideal time for states to legalise online gambling, as the U.S. market continues to benefit from increased growth and new partnerships.
New Jersey recently announced record-breaking yearly revenues, while also revealing that players had claimed a record amount in prizes across both on and offline channels. As well as being beneficial for the people of New Jersey, this may also offer a unique opportunity for brands in the UK. Here’s why:
How New Jersey enjoyed a record-breaking year
With five weeks of 2017 still remaining, online gambling in New Jersey has already passed the $200-million mark. This represents a new high for Internet betting in Atlantic City, which was first legalised back in 2013 as the state became the second to legalise virtual gambling in North America. In total, the state generated $204.2 million in online revenue through October, while showcasing an impressive growth rate of 26.7%.
Operators also reported iGaming wins to the value of $20.6 million in October, which by itself represented growth of 23.4%. Interestingly, only online poker saw a decline in the amount of revenue generated, as this game delivered a total of $20.5 million and a fall of 8.1%. This will be corrected over the course of the next 12 month, as New Jersey enters into a liquidity sharing deal with Nevada and Delaware (who are already linked up through a pre-existing agreement.)
How can UK operators look to benefit?
With Pennsylvania also likely to enter into this agreement once they’re local operators are up and running, UK brands will be given a golden opportunity to partner with the U.S. market. This is something that the UK Gambling Commission (UKGC) have attempted before, only to fail in attempts to close a deal with its New Jersey counterparts in 2015.
With a model now established for such a partnership, and the U.S. market continuing to deliver record-breaking numbers, now is the ideal time for the UKGC to negotiate a brand new deal. Not only would British operators subsequently be able to benefit from increased revenues, access to a global playing pool and new technologies, the UKGC could also add genuine value by lending its renowned regulatory prowess to create a fair, secure and transparent industry that allows other states to legalise iGaming.
This would be hugely beneficial for all parties, while the established nature of the UK market could enable regulators to secure a lucrative deal for its operators.
The last word
Make no mistake; the sustained growth of online gambling in states such as New Jersey represents a huge opportunity for UK operators. After all, the current trend is for regulatory bodies to pool resources in a bid to boost growth, and it would be hard to ignore a North American partnership that includes four thriving states.
It’s arguably even more important for the UK at present, as its EU rivals continue to form similar partnerships while the island nation prepares to exit the union. By being proactive and partnering with the U.S., it could tap into a potentially huge marketplace that it well and truly set to explode!