The global betting and gaming industry continues to see unprecedented growth. So is now the right moment for UK-based gaming companies to explore expansion into the US market?
Why expand into the US now?
The United States (US) gambling industry has significantly changed in recent years. Ever since the Supreme Court decision in 2018 to overturn the Professional and Amateur Sports Protection Act (PASPA) of 1992. This landmark decision effectively lifted the federal ban on sports betting, paving the way for individual states to legalise sports wagering. Several states have now legalised Sports Betting, with more on the way. Like New Jersey, where Mojo has just launched its new service.
So with a massive increase in smartphones, a robust ecosystem, a culturally diverse audience, and favourable legal changes, the US is increasingly fertile ground for pioneering gaming companies to expand into the US.
Opportunities in the United States for Betting and Gaming companies
Market Size and Growth: The US gaming industry is one of the largest and fastest-growing markets in the world. Set to become the second largest in the world, after the UK, with the iGaming vertical predicted to reach US$8.4 billion by 2025 and the sports betting market will be worth up to US$13 billion by 2025.
This opens up a huge opportunity for UK gaming firms to take their existing, mature products and services and open them up to a much larger customer base. Driving higher revenues and promoting business sustainability.
Cultural Diversity: The US is great for experimentation and innovation. With its diverse population, it offers a broad spectrum of preferences. This diversity provides gaming companies with the opportunity to experiment and diversify their product offerings, catering to an expansive range of genres, themes, and gameplay styles.
Emerging Technologies: The US has been a leading player in the adoption of emerging technologies, including Virtual Reality (VR), Augmented Reality (AR), and 5G. These technologies could be used by expanding UK companies to create innovative and immersive gaming experiences, setting them apart from competitors.
Legal Developments: The US legal landscape is becoming increasingly supportive of igaming and esports, most notably with the legalisation of online sports betting in many states. This change presents UK gaming companies, especially those in the sports and betting sector, with new opportunities to expand their market.
Investment Opportunities: The US market presents abundant investment opportunities, with venture capitalists, private equity, and corporations showing increasing interest in the gaming sector. UK companies can leverage this to secure funding for expansion, partnerships, and acquisitions.
There’s lots of opportunity. But it’s complicated
Each state has their own rules and regulations
Overall, the growing online gambling market in the USA presents significant business opportunities for companies operating in igaming. However, it is important to note that the legal and regulatory landscape for online gambling in the USA can be complex and varies by state. Meaning it can be extremely complex and could impact the potential value to the business. Navigating each state’s rules and regulations is a must, and shouldn’t be taken lightly.
The US is big
Beware of just how big the US is compared to the UK. It sounds obvious, but your budget for servers, websites, apps etc might be stretched too thin by trying to launch everywhere at once in the US market. Carefully consider your approach. It might be better for a targeted approach. For example, state by state or initially launching on the East or West Coast.
A focus on customer safety is a must
With the US being a new and growing market, with lots of new potential customers, make sure you’re considering customer safety from the start and leading by example. Due to a lack of exposure to the market, customers may not be as mature in their understanding of safe gambling.
Conclusion
In conclusion, the US offers an attractive landscape for UK gaming companies contemplating expansion. The combination of a large, diverse market, openness to new technologies, favourable legal changes, and significant investment opportunities can pave the way for successful business growth in the United States. But with each state having their own rules, make sure you partner with someone who can help you stay within the rules and keep you compliant.
We’re specialists in Betting and Gaming / iGaming. Working with Flutter, Sky Bet, William Hill, Mojo and Caesars to name a few.
Raj Kissy, Betting and Gaming Specialist
LinkedIn: linkedin.com/in/raj-kissy
Email: [email protected]
