Paddy Power Report Shows Future of American Sports Betting

Paddy Power Report Shows Future of American Sports Betting

Long one of the world’s leading sports betting brands, Paddy Power Betfair has been at the forefront of U.S. gambling expansion. A recently released interim results report shows how the gaming giant plans to expand its reach in the market – and how American sports betting may develop overall.

Far from the ubiquitous presence it’s become across U.K. high streets, the U.S. market is far from the company’s largest revenue generator. But it may be its most exciting.

In the wake of the Supreme Court decision to strike down the federal ban on sports betting, several states began taking bets. International gaming giants jumped at the chance to partner with gambling stakeholders in the new market. Not surprisingly, Paddy Power dove in head first.

FanDuel Propels U.S. Growth

When the court overturned the ban, Paddy Power began expanding its TVG brand programming options beyond just horse racing coverage. Already a staple across dozens of American horse tracks, the company intends to expand the market with programs catered to other American sports.

It made even more waves with it acquired another seemingly omnipresent American gaming entity.

As outlined in its report, the company jumpstarted its massive expansion by purchasing FanDuel. The daily fantasy site entered the zeitgeist of American sports fans in 2015 with a seemly unrelenting barrage of tv commercials. The company survived a legislative pushback that sought to regulate the games, and in some cases ban it outright, and is now legal in 40 states.

Through the FanDuel name, which already was well known by Americans, Paddy Power launched an aggressive sports betting campaign. The company put FanDuel’s name atop the Meadowlands Racetrack, which is located just a few miles from Manhattan and was one of the first sites to take legal bets in New Jersey.

The company then formed a landmark partnership with American gambling giant Boyd Gaming. Through that affiliation, and a tangential partnership with MGM, Paddy Power jumped into the Mississippi sports betting, which took its first bet Aug. 1. Meanwhile a prior agreement with the iconic Greenbriar resort will give the company a presence in West Virginia when it takes its begins taking bets in September.

If the company has its way, new developments won’t stop there.

Paddy Power Eyes 10 More States For Growth

New York and Pennsylvania both have sports betting legalization laws on their books, but regulatory and taxation issues have prevented them from taking their first bets. If and when these states, the fourth and fifth-most populated in the nation, respectively, FanDuel already has deals in place.

Perhaps even more importantly, the report reveals the company’s next targeted wave of expansion.

Through Boyd and MGM, Paddy Power has affiliations with casinos in eight additional states it believes could be on the forefront of the next wave of sports betting. The company report reaffirmed its commitment to exploring this next frontier of legalized wagering.

While our existing businesses are attractive in their own right, they also position the Group well if positive regulatory change results in the market opening for sports betting. In light of this, we are considering the appropriate way that we would participate in the market.

That list includes a handful of states that could possibly pass sports betting legalization bills within the next year:

  • Michigan
  • Ohio
  • Illinois
  • Missouri
  • Kansas
  • Iowa
  • Massachusetts
  • Maryland

As the company has seen with other states, taking bets is seldom a straightforward process. Unlike in much of Europe, a portion of the American public still opposes any type of gambling and a dozen or more states may be a decade or more from legal betting – if they ever do so at all. Without chance of a federal framework, each state that seeks to legalize wagering is taking a different approach. Even with widespread support from lawmakers, regulators can delay and even derail implementation.

Still, with only six states positioned to take bets before the end of the year, Paddy Power Betfair has seen the opportunities in the U.S. market. The company has been a leader In the early days of American betting and will be one of the leading catalysts of expansion going forward.

Interested in learning more about the current US sports betting landscape? Check out our latest Gamblecast explaining everything you need to know about US sports betting:

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