Pinnacle Aims to Return to the US After Australian Exit
Date Posted: May 4, 2018
Pinnacle prepares to reenter the US market after withdrawing its application for a UKGC license.
The sportsbook solutions provider introduces a new platform instead of pushing for the UK market. This platform will be used to cater to the US market, especially now that sports betting may soon be legalized in some US states. This step is a smart move for Pinnacle after the company recently exited the Australian market because of lack of license.
UKGC License Application a Turning Point for Pinnacle
Under the guidance of a new management, Pinnacle formed a strategic vision of providing quality sports betting solutions to punters within regulated European jurisdictions in 2015. In the same year, Pinnacle acquired a Malta Gaming Authority license, which allows the company to provide sports betting services to markets across Europe.
The company announced its intention to apply for a UK license in 2015. Pinnacle expected to secure the license in the early period of 2017. But up until April 2018, the company’s license application had stood pending.
While UKGC representatives did not provide any reason for the delay, Pinnacle announced the withdrawal of its UKGC license application in a tweet on May 1. The tweet said that the company decided that this is not the right time to serve the UK market. Pinnacle is likely not expecting any development with its license application anytime soon.
Leaving the UKGC behind for now, Pinnacle shifts its efforts towards introducing Pinnacle Solution, a new B2B sportsbook platform technology division. The company aims to market Pinnacle Solution to operators within America as soon as the country’s sports betting laws are amended.
Recent Exit from Australia
Pinnacle’s services to players in Australia were halted on March 12, 2018. The sportsbook solutions provider restricted all Australian players from making any new deposits or from creating new accounts. Account holders that still had funds in their Pinnacle wallet were given until April 20 to withdraw all money from the gaming site.
The restrictions came after the amendment of the Interactive Gambling Act of Australia which removed all gray areas of the gambling law. Gaming operators that are providing gambling services to the country can now be penalized by the Australian Communications and Media Authority (ACMA). Individuals that are found to break Australia’s gambling law will face a fine of AU$1.35 million per day and companies will be penalized to pay AU$6.75 million per day.
As the company lost its Australian market and the opportunity to expand across Europe, Pinnacle now sees the US as a potential market. The US previously represented more than 60 percent of the company’s revenue. Because of threats of a forced exit and incarcerations from US feds, Pinnacle exited the US in 2007.
With the repealing of PASPA in New Jersey and other American states, Pinnacle can legally operate in the US without fear from the feds. The Pinnacle Solution platform can help generate a significant impact in the US market when the company decides to return to the region.