- There are currently eight states with active sportsbooks and seven more states who may possibly launch sports betting operations this year.
- FanDuel was acquired by Paddy Power Betfair in July of 2018.
- William Hill plc., GVC Holdings, and Paddy Power Betfair all have online sports betting platforms and are based outside the U.S.
ATLANTIC CITY, N.J. – Over a year has passed since the federal ban on sports betting known as the Professional and Amateur Sports Protection Act (PASPA) was repealed. In that time, several states have legalized the activity, which has proven to be profitable for not only the state but also for sportsbook providers.
Before the PASPA was repealed, the American Gaming Association estimated that at least $150 billion dollars were wagered on sports each year through nonregulated channels.
Now that states are starting to regulate the industry within their own borders, sportsbook providers such as William Hill, GVC Holdings, Paddy Power Betfair, and DraftKings have taken significant steps to gain market share.
There are currently eight states with active sports betting operations and more are expected to join this year. This includes four states which passed sports betting legislation last month and three more states, including New York, who are looking launch retail sportsbooks later this year.
Each company made strategic moves last year to enter the market. In recent weeks official numbers, including revenue figures, have been released by these companies.
The reports they provide give a clearer picture as to where they stand in the US sports betting market and provide further details on what they plan to do next.
William Hill Plc.
Based out of Wood Green, London, England, William Hill is a world-renowned bookmaker and a long-time operator in Nevada where it holds 32% of market share revenue in the state.
William Hill has since expanded out of Nevada and now operates in states such as Mississippi, West Virginia, and New Jersey. The company currently only offers retail sportsbooks in West Virginia and Mississippi but offers an online and mobile sports wagering app in Nevada and New Jersey.
According to the most recent William Hill trading statement, US total net revenues increased 48% from last year and the company’s total net revenue from online operations also increased by 8%.
“Just one year on since PASPA was overturned William Hill has doubled the sports wagering it handles in the US, seen record performances at the Super Bowl and March Madness, is live in all seven states to have allowed sports betting and expects to enter further states soon, with Indiana and Iowa the most recent states to pass bills to legalize sports betting,” said Philip Bowcock, CEO of William Hill.
Based in the Isle of Man, GVC Holdings is now licensed in more than 20 countries.
Arguably the biggest strategic move the company made last year was partnering with the American based casino-franchise, MGM Resorts International. The two companies agreed to partake in a joint venture to develop an online sports betting and gaming platform known as “playMGM”.
The move gives GVC Holdings access to MGM’s 31+ million-member M life database and gives players access to rewards at MGM. MGM includes properties such as Borgata, which is located in New Jersey and Beau Rivage which is located in Mississippi.
The company plans to launch the playMGM on the GVC technology platform later this year.
Paddy Power Betfair
Based in Dublin, Ireland, Paddy Power Betfair has taken arguably the strongest position in the US sports betting market.
Last year the company acquired the daily fantasy sports company, FanDuel. Paddy Power Betfair now has a 61% stake in FanDuel and has leveraged its brand recognition to grow its sports betting operations in the US.
In Paddy Power Betfair’s first quarter trading update, the company reported a 17% increase in total year over year revenue.
“In the US, FanDuel Group is making huge progress, with our unique proposition of brand, product offering, existing fantasy customer base, US market experience, and global sports betting expertise driving a Q1 New Jersey sports betting market share of 50%,” said Peter Jackson, CEO of Paddy Power Betfair.
The US-based daily fantasy sports company has also made notable strides in sports betting throughout the country.
The company is the second only to FanDuel in terms of sportsbook revenue in New Jersey. DraftKings tends to average about 23% of all sports wagering revenue in that state.
The company is also hoping to enter the online Pennsylvania sports betting market sometime in 2019. DraftKings initially signed a partnership with Caesars Entertainment. However, that deal did not include access to an online sports betting skin in the state of Pennsylvania.
DraftKings will need to find another partner to enter that market and they will need to have their app tested by the Pennsylvania Gaming Control Board before it can officially launch for legal sports betting.
– In his career, Hasan has worked both local and state government positions—including the Attorney General’s Office in Florida. On top of being familiar with the legislative process, he has also been researching and writing on the legality of sports betting across the US. Outside of work you’ll most likely find him producing or playing music, playing sports, or working on creative writing projects. You’ll also catch him at Doak Campbell Stadium cheering on the Noles.