5 iGaming Companies to Enter the US Sports Betting Market
May 18, 2018
The US Supreme Court’s (SCOTUS) landmark decision to repel the Professional and Amateur Sports Protection Act has opened the door to a multibillion-dollar market in the US. In fact, five US-geared iGaming companies are already in full operation to provide their fantasy sports and sports betting services.
FanDuel is a daily fantasy sports (DFS) provider that has a large following in the US. It has been looking to enter the sports betting market to complement its DFS product.
Matt King, CEO of FanDuel, said in an interview with Forbes:
“(A Supreme Court overturn) would mean we would get into sports betting. This business is around fan engagement and helping fans feel closer to the things they like, and clearly sports betting is one way to help people to do that. So it would be very logical for us to get into it. We have some ideas of how to make that experience better and ones that we feel will resonate with our users. We think we’re uniquely positioned to fulfill that market demand.”
The DFS provider did not give any details on how it will provide sports betting to the market. By entering the sportsbook industry, FanDuel will no longer just be about a game of skills as the company expands its portfolio toward the gambling market.
DraftKings shares the same sentiment as FanDuel. For DraftKings, a sportsbook service complements the company’s fantasy sports portfolio.
Jason Robins, CEO of DraftKings, said:
“Our mission has always been to bring fans closer to the sports they love and now, thanks to the wisdom of the Supreme Court, DraftKings will be able to harness our proven technology to provide our customers with innovative online sports betting products. This ruling gives us the ability to further diversify our product offerings and build on our unique capacity to drive fan engagement.”
Unlike FanDuel, DraftKings has been working on a mobile sports betting platform for more than a year. Additionally, the DFS provider has also been working to get a license in some US states where sports betting is allowed, even before the New Jersey case. With the SCOTUS’s decision on Monday, DraftKings can now offer its mobile sportsbook to various US states that will legalize sports betting.
After an unsuccessful attempt to secure a UK license, Pinnacle shifted its focus on Pinnacle Solution, the company’s B2B sportsbook platform. Pinnacle Solution features a plug-in iFrame API and turnkey solution which are made with the company’s industry expertise and sports betting experience.
Paris Smith, CEO of Pinnacle, said:
“After 20 successful years in the gaming industry, the launch of our B2B platform is the start of another exciting chapter in the history of Pinnacle. We’re known for risk management and eSports, and now others in the industry can benefit from our expertise instead of trying to compete with them.”
Pinnacle Solution intends to create a strong foothold for the company on the US market. Smith has seen a strong potential in the region as the US market represented about 60 percent of Pinnacle’s revenue since 2007
4| SG Digital
SG Digital has been preparing to enter the US sports betting market with the acquisition in September last year of NYX Gaming Group for the OpenBet Sportsbook product. In April 2018, SG Digital recommended OpenBet sportsbook for product review sessions with New Jersey’s Division of Gaming Enforcement (DGE). These sessions will ensure that OpenBet follows the state’s regulations.
Recently, SG Digital signed an agreement with GeoComply to integrate geolocation technology into the OpenBet platform. The technology will verify players’ location when a wager is placed to ensure that bettors who use the SG sportsbook platform are within one of the states that legalize sports betting.
Anna Sainsbury, CEO of GeoComply USA, said:
“Scientific Games has been a long-time partner of GeoComply since the onset of U.S.-regulated iGaming, having first gone live with our geolocation technology in New Jersey in 2013. As a market innovator, they have taken the initiative to anticipate the U.S. sports betting market’s regulatory needs by integrating our geofencing capabilities into their products. This move ideally positions Scientific Games as the industry awaits the Supreme Court decision on the Professional and Amateur Sports Protection Act (PASPA).”
SBTech acquired the integrated technology platform through a partnership with Churchill Downs Incorporated (CDI), a Kentucky-based racetrack operator. The team up allows SBTech to supply a US-facing iGaming platform to CDI through which the racetrack operator can enter New Jersey’s sports betting market. Richard Carter, chief executive officer of SBTech, said:
“We are thrilled to be partnering with Churchill Downs and to introduce our award-winning iGaming and sports betting platforms in the U.S. We both share a deep commitment to technological innovation and excellence, and we look forward to working with them during this exciting time in the history of the U.S. gaming market.”
SCOTUS’s decision in the New Jersey case has created a Wild West sportsbook scenario wherein each state will create new rules and regulates for sports betting operators. These five iGaming companies are the pioneers of the new market which will open the doors for other sportsbook companies to follow.