TRAFFIC
After Betfair won the case against
Western Australia, major European
operators such as William Hill and Bet365
entered the Australian market. These
firms are now jostling for position in
the US. William Hill is already running
three of the four regulated sportsbooks
in New Jersey, along with operating as
the exclusive risk manager for Delaware’s
sports lottery. It is also well established in
Nevada and has a deal with Palace Casino
in Mississippi. After snapping up FanDuel,
Paddy Power Betfair is using the brand to
front sportsbooks in various states. GVC
Holdings are looking to partner with
casino group MGM, while UK betting
behemoth Bet365 are also starting to get
involved in various states.
Then there are US firms, such as
Penn National, with their tentacles in
various states. Rhode Island casino
group Twin River has just tied up a deal
to buy Delaware’s largest casino and
sportsbook operator, Dover Downs,
and it is also present in Mississippi.
Each US state must consider how sports
betting will be licensed, and this creates
a headache for operators that want to
thrive across multiple states. The biggest
concern is inconsistency in standards
across the country, which could result
in barriers to entry for all but the biggest
players, like William Hill and Paddy Power
Betfair. Ultimately the purpose of sports
betting is to benefit US consumers and
bolster states’ finances, but that will not
happen if there is a lack of competition.
US states need to decide whether
sportsbook operators will be taxed
at the point of supply or the point of
consumption. In Australia, states are
introducing point-of-consumption taxes;
the UK had to implement a point-of-
consumption tax when operators
moved offshore to Gibraltar.
European operators were expected
to be targeted for acquisitions due to
their unique sports-betting skills.
However, the European giants have
thus far purchased US firms and tied
up deals with US operators, who are
“A licence issued in any Australian state is recognised by
other states provided it’s not protectionist. US lawmakers
have to decide whether a similar system is needed there”
There also needs to be a joined-up
approach to minimising the risk of
people betting to harmful levels. Yet if
controls are too punitive in one state,
it can cause operators to turn their
backs on it, once again driving people
to offshore books – a problem that has
occurred Down Under.
Some Australian states are more
draconian than others. In New South
Wales, consumers cannot be allowed
to view an ad that induces them to bet
and hefty fines are dished out to operators
and affiliates that breach this rule.
It means that bookmakers operating in
Australia, and affiliates capitalising on
the market, must use geotargeting to
ensure certain promotions are not
viewed by people in New South Wales,
the country’s most populous state.
US lawmakers may have to impose
similar state-specific restrictions to
protect their residents from harmful
gambling and advertising. This can
lead to an inconsistent approach, so
affiliates would need to stay on top of
a complex legislative network.
typically at the head of the queue
when new US licences are handed out.
This means that affiliates should be able
to lean on existing relationships with the
likes of William Hill and Paddy Power
Betfair. The parallels with Australia also
suggest that the vast offshore industry
will continue to thrive for the foreseeable
future, allowing affiliates to continue
their work in this area while brushing
up on their state-specific legislative
knowledge and sharpening their focus
on the regulated market.
MIKE DODGSON is
head of paid search &
operations for Digital Fuel
Marketing. Mike has more
than six years PPC and
display-advertising experience
gained working with Coral Interactive
and Manchester United. He has
managed large PPC budgets across all
gambling verticals and is responsible
for ensuring search best practice and
team development at Digital Fuel.
iGB Affiliate Issue 70 AUG/SEP 2018
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