European Firms Compete for US Gambling Market
Since individual states in the US started to legalise online gambling European firms have been busy forming partnerships in order to enter the US market.
A spokesman for 888 said that “The potential for the U.S. gaming market is huge. 888 is able to offer bricks and mortar casinos with the perfect platform to launch their brand online, once all regulations are in place.”
888 was the first non-US operator to be recommended for an interactive gaming license in Nevada and prior to 2006 around half its revenue was from the US.
888 has now formed deals with Caesars, WMS gaming and Avenue Capital and they hope these deals with give them a way to do more business in the US.
Another European firm, bwin.party, has formed a partnership with MGM and Boyd Gaming while William Hill has formed a deal to buy out its joint venture partner Playtech and a $695 million joint takeover of Sportingbet.
A research note from Citi said, “Our bottom-up analysis suggests that the US market could be worth 7.9 billion euros by year-end 2018.” With such large revenues to be made it is safe to assume that the majority of European firms will be vying for a share of the market.