Online Gambling in the US

The US gambling sector is on the up according to a report by Forbes Magazine. It is predicted that the 2019 record of $43.6 billion revenue will be beaten before the end of 2021. The Q2 figure was $13.6 billion bringing the year’s total revenue-to-date past the $25 billion mark.

As the world gets back to normal, these figures have been massively helped by the online gambling sector which has shown much promise over the last couple of years. The number of web searches for best online casinos has gone through the roof as gambling fans looked for the best deals around.

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DraftKings See the Future

DraftKings, the world’s number one daily fantasy sports provider, clearly sees what a great future online gambling has in the US. The firm recently bought Golden Nugget Online Gaming (GNOG) in a deal worth approximately US$1.56 billion. This tie up also brings a partnership with NBA team the Houston Rockets.

The takeover of GNOG will allow DraftKings access to a huge database of five million customers, opening up many new doors to grow the igaming side of the business.

Jason Robins, DraftKings’ CEO and chairman said: “Our acquisition of Golden Nugget Online Gaming, a brand synonymous with iGaming and entertainment, will enhance our ability to instantly reach a broader consumer base, including Golden Nugget’s loyal ‘iGaming-first’ customers.”

Ever since the US Supreme Court overturned a blanket ban on sports betting, there has been increased interest in the American online gambling industry. Many expected that there might be increased profit potential over the next decade or two, but nobody saw this coming.

Earlier this year MGM launched a takeover bid for control of Entain, the owners of Ladbrokes, offering an eye-watering £8 billion. The deal was refused, but it was later explained that American gaming giants are looking across the pond to the UK for expertise in a mature market. This new paradigm with increased possibilities for online gambling in the US was unexpected and caught many unaware.

For now, MGM and Entain will continue to work together in their partnership with BetMGM while a six-month cooling off period is enforced before MGM can approach Entain in another takeover bid.

Meanwhile, in the UK a review is pending of the Gambling Act 2005. Rumour has it that the online gambling sector could be hit hard while brick-and-mortar casinos are given an easier ride. This dynamic could be all that is needed to release a flood of British talent to head over to the US ready to push the online scene there that is possibly about to boom.

Exciting times for online gambling in the US. We hope that poker does just as well out of any positive changes coming for the casino niche.