Ladbrokes, a leading online sportsbook real money site, has entered the US sports betting market, which is set to be regulated in the near future. It recently purchased Stadium Technology Group (STG), a Las Vegas based company that offers gambling products. The sportsbook acquired 65% stake in the group. It also has the option of purchasing the remaining share in addition to the stakes it currently owns. The sportsbook has up to 5 years to make the decision. One of the key factors on which it will base its decision will be the group’s performance in the coming years.
Legal Status of Sportsbetting in Four States in US Good for Ladbrokes
Currently, sportsbetting is legal in just four states in the US. Delaware, Oregon, Nevada and Montana allow betting activities under the 1992 Professional and Amateur Sports Protection Act. STG has offices in two of these states – Nevada and Delaware. This will allow Ladbrokes the chance to get a foothold in the sportsbetting market in the US without facing many issues. A few days ago, Governor Chris Christie signed a bill legalizing wagering on sports in New Jersey. For this to come into effect the federal ban on sportsbetting in the US will have to be revoked.
The chief executive of Ladbrokes, Richard Glynn, said that the US market is big and shows a lot of potential in the area of improving its regulations. With this likely to happen in the next few years, Glynn said that it is a sensible step for Ladbrokes to do what it takes to establish itself in the US market. He added that as one of the key suppliers of technology to betting establishments in Delaware and Nevada, STG too has the potential to grow. Some of STG’s current clients are Treasure Island and Atlantis Resort based in Las Vegas and the Bahamas.
Ladbrokes Announcement Follows William Hill’s about Operating Profits
Ladbrokes announced its acquisition just after William Hill said that for the whole of 2012, till the 27th of December, it expects operating profits to drop. The chief executive at William Hill, Ralph Topping, stated that he was expecting a positive performance. When the company entered the new year, it predicted that there would be a consumer backdrop. However, the overall performance of the company shows that it is benefitting from largely being a low ticket entertainment option.
