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Sports betting: New markets, emerging trends and overhauls One of the biggest news events of the year in the gaming world was undoubtedly the U.S. Supreme Court’s May decision to strike down the Professional and Amateur Sports Protection Act, paving the way for legal sports betting across the country.
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lthough the ruling dominated the headlines, there have also been other changes in sports betting legislation around the world, from Vietnam to New Zealand, which will also have a major impact in their respective jurisdictions. Therefore our focus for this G2E edition of the Asia Gaming Briefings magazine is of course dedicated to sports betting. We review the momentous changes likely to happen in the U.S. as a result of the PAPSA ruling and what opportunities may open up for global sports betting companies, many of which already have a significant head start on any U.S. competitors given their longer history in legal markets, such as Europe. We ask in particular, what kind of opportunities may emerge, either for Asian providers to offer their services, or for companies seeking to target the Asian market in the U.S. We also take a broad brush look at some of the trends in the Asian market when it comes to sports betting, where local punters are driving a strong demand for a wider variety of content, especially when it comes to second-tier sports. According to experts, a conservative amount for the level of credit extended on a weekly basis in the Asian sports betting market is between US$10 billion and $50 billion. With such large amounts at stake, companies cannot
Asia Gaming Briefings | October 2018
afford to ignore the emerging trends. Among individual jurisdictions, we study the recent amendments to Vietnam’s sports betting laws. The latest regulation, which comes into force next year, goes some way to providing clarity for the investors keen to enter the market, but industry experts argue there is still more to be done, in particular when it comes to betting options. Still, firms from Singapore, Hong Kong, South Korea and Malaysia have already expressed an interest in entering the market, in particular in the field of horse racing. Lastly, we go to New Zealand, where the country’s coveted racing industry has been shaken to the core by a proposed revamp of the sector in a report by an Australian expert. The study recommends closing more than half of the country’s race courses and leasing out the Totalisator Agency Board to an Australian operator. The premise of the report is that the industry is in a state of serious malaise, putting at risk the many jobs dependent on the sector. Given the relatively small size of both the New Zealand market and its population, economies of scale are difficult to achieve, but highly necessary. Needless to say the proposed overhaul has raised more than a few hackles in the horse racing world.
