Paddy Power Betfair Set For Legal US BettingJake Cooper | 24 Apr 2018
If the Supreme Court should reveal new rulings on April 24 and April 30, it is possible that US sports betting will soon be liberalised and be considered state-by-state in the near future. Should this happen, one of the betting operators that would benefit most is Paddy Power Betfair, an Irish-based bookmaker that has long been listed on the LSE.
Paddy Power has spent months preparing itself for success should the American sports betting market be expanded through the Supreme Court’s pending rulings. In fact, the bookie’s first efforts can be tracked back to 2009, when Betfair acquired the US’s largest online horse racing operation, TVG, which had a TV channel with over 45 million viewers.
Paddy Power Betfair also operates its own online casino gambling and horse race betting exchange in New Jersey, one of the few states in America in which betting is legal. The bookmaker also owns daily fantasy sports supplier DRAFT, which it purchased in 2017 and has relied on for its success in the sports betting world ever since.
DFS And Sports Betting To Overlap
According to US CEO Kip Levin, the bookmaker thinks that DFS could be a strong revenue category even once sports betting is legalised, with a possible overlap present as well. According to him, there is a high rate of overlap between those who enjoy DFS and sports betting, making the two market segments ideal for merging in the near future.
Combined, all of Paddy Power Betfair’s operations around the globe process over $2 billion each year, providing the firm with the assets it needs to launch real money sports betting in the US. With that said, there is also a definite cognisance of the fact that an ‘open’ US market will pose its own unique challenges, and that a special platform should be tailored specifically for the market in question.
US Market Needs Tailored Platform
According to Levin, Paddy Power must create an offering specifically for the US, while still using its experience provided by over 350 staff in its risks and trading department. He added that is firm is already focusing on markets for US sports because they are burgeoning in popularity, especially in regions like Australia.
However, the CEO simultaneously warned that there is some work the bookie will have to do to ensure that its offering caters properly to the US market.
Paddy Power is also focussed on pro sports leagues demanding ‘integrity fees’ from future sports bets, along with high tax rates and differing laws and regulations in certain states. This highlights the fact that it pays punters to keep an eye on the integrity of their bets. For now, however, all that is left to do is wait for the Supreme Court to rule, and Paddy Power to continue to focus on its 5 million active players worldwide.