Could Pennsylvania gambling boost UK operators?

Posted by Harry Kane on Monday, November 20, 2017

The online gambling market in the UK remains the single most advanced and lucrative in the world. This is why it continues to lead the way in terms of innovation and growth, blazing a trail for other progressive markets to follow.

While UK operators could easily sustain themselves solely by trading in the British marketplace, however, many remain keen to forge partnerships and share resources with overseas brands. This not only enables them to reduce operational costs, but it may also offer them an opportunity to leverage the very latest in technological innovations.

With this in mind, the news that Pennsylvanian authorities could be about to legalise online gambling is likely to be well-received in the UK. But how beneficial could this ultimately prove to British operators and the marketplace as a whole?

The story so far – and why Pennsylvania could serve as a catalyst

For those who don’t know, Pennsylvania’s proposed gambling expansion bill was finally signed off last week by Governor Tom Wolf. This comprehensive legislation, which would officially legalise and regulate practices including online casino gambling and daily fantasy sports betting (among other disciplines), has been pushed through in a bid to generate a lucrative revenue stream and close a $2.2 billion budget deficit.

So while it may take up to a year for online gambling to officially launch in Pennsylvania, there’s little doubt that the state will become the fourth to pass an expansion bill (after Nevada, New Jersey and Delaware).

This could prove the catalyst for British operators and the UK Gambling Commission (UKGC) to renew their relationship with the U.S. market, which had stalled after negotiations broke down with the New Jersey Division of Gaming Enforcement (DGE) in 2015 and as proposed bills in California and New York were voted down. Now that New Jersey has entered into a progressive pact with Nevada and Delaware, however, there appears to be a viable model to make this happen both domestically and on a international scale.

How will Gambling in Pennsylvania prove beneficial to UK operators?

Once the online gambling market is fully activated in Pennsylvania and the state can boast its own individual sites and operators, there s every chance that it will join the player-pool sharing initiative involving Nevada, New Jersey and Delaware. The UK could then look to join this alliance with a single, effective negotiation, by leveraging its exceptional iGaming regulations and offering to help implement similar guidelines in the American market. This was a cornerstone of the UKGC’s original negotiations with the DGE, while it could be the determining fact in completing a deal.

If an amicable agreement was to be reached, the potential for UK operators would be huge. Not only would they be able to share technology and potentially reduce costs, but there would also be a unique opportunity to expand in a vast and largely untapped market. With the power of the UKGC behind them, British operators would also be a in a position to negotiate a favourable deal with their U.S. counterpart and build on the outstanding growth they have experienced at home.

This could become even more important in the years ahead, particularly as Brexit negotiations continue to turn sour and the relationship between the UK and the EU freezes. This will force the UK to seek out new relationships further afield, particularly given the online gambling agreements that currently exist between various European nations.