The US gambling industry continues to expand. New markets are opening and that is good news for not just American gambling companies. Those in the UK are looking stateside to see what opportunities for expansion exist.
Recent years have been good ones indeed for the online gambling industry in the US. An increasing number of states have legalised gambling, not just on sport but playing casino games too.
As each state makes gambling legal, that’s good news for companies who can apply for licences allowing them to launch their business. For example, 4ThePlayer.com who are an award winning game developer now operates in Michigan. This follows their launch in New Jersey as the company continues to expand its business.
It’s just a question of them continuing to produce excellent casino games and then looking to launch them in new online casino markets. Their Business Development Director and co-founder is Chris Ash. He’s spoken about how the company is “actively working” on expanding into other US states.”
There’s a lot of money to be made in the US gambling market. Michigan regularly sees their 15 online casinos bringing in monthly revenue of around $150 million. That was the case in May of this year with $150.6 million revenue, 18% higher than in the same period last year.
With everything going so well in the US, it’s no surprise therefore that UK gambling companies are doing their best to get a slice of the action. Even some of these newer UK online casinos listed here are starting expansion to the American market.
Bet365 are one of several UK companies who are determined to expand their business in the US. They recently launched in Iowa and that’s the fifth US state in which they have done so. The company had previously launched in New Jersey, Colorado, Virginia, and Ohio It’s all a long way from Stoke where their business originated.
They first launched in New Jersey where online casinos are flourishing. The state loves gambling but since 2013 it’s been carried out online, not just in the land-based casinos in Atlantic City.
A major task is to find a partner in the US. Bet365 have formed a deal with Casino Queen Marquette to help them expand in the US. It’s a good deal for the US company too, especially for the sports betting side of the business.
To aid further US expansion, bet365 have gone into partnership with XLMedia (XLM). This has the aim of attracting more custom and promoting responsible gambling.
One of the most successful UK gambling companies is Entain. They too have been busy making their presence felt in the US. The company is the joint owner of BetMGM who operate in many US states. BetMGM is a partnership between Entain and US company MGM Resorts International.
A reason why UK companies are keen on expanding in the US is the uncertain situation in their only country. This year has seen the UK Government finally publish its White Paper into gambling reform and it’s not been the best of news for casinos.
Proposals include introducing stake limits on casino games, a compulsory levy and stricter affordability checks. Those proposals are likely to see profits reduced so you can see why companies are keen to expand into overseas markets.
BetMGM have recently released their financial results for the first half of 2023. They revealed that “significant progress” had been made with a continuation of their “strong growth. Revenue for this year is expected to be between $1.8 and $2 billion.
The figures are good news for both Entain and MGM Resorts International. Entain continues to make acquisitions, most recently Angstrom who are a pricing and risk specialist. That will boost the sports betting side of their US business and with the online casino industry going well, that’s more good news for their stateside ambitions.
Also doing well in the US are Flutter Entertainment. FanDuel is their American business and has an ever increasing presence in the US gambling industry. They recently launched in Massachusetts strengthening even further their business.
Another part of Flutter Entertainment is PokerStars. They are also performing well in the US in states such as New Jersey and Michigan. The offering of more tournaments with increased prize money will ensure further success in the US.
The future is likely to see UK companies growing stronger in the US. They will continue to wait and see which states make betting legal and then with their American partners look to further expand their business.