When the UK government was finalizing the legislation that helped create the contemporary gambling industry seventeen years ago, moral outrage over the proposed supercasinos led to the idea’s eventual demise. Plans for up to 40 were reduced to 8, then to just one in Manchester, until Gordon Brown gave in to media criticism, which the Tories deftly used to their advantage, and completely abandoned the concept.
Flutter and Entain in The Blooming Online Gaming Market
The 2005 Gambling Act and the introduction of smartphones to the market happened at the same time. In the culture we live in today, everyone has a portable casino with them at all times.
The financial results of Ladbrokes owner Entain, Paddy Power owner Flutter, and Gamesys, the company behind Virgin Games and other brands, were all released in September 2021. It was then that the investors analyzed the information to see if an increase in online casino gaming that began during the epidemic, when brick-and-mortar casinos and bookies were closed, has persisted or even increased. But the UK wasn’t the biggest market for online gaming action. Particularly for Entain and Flutter, America is the place to be.
The Rapid Expansion of the U.S. Online Gambling Market
The industry has been expanding state by state ever since the supreme court struck down a prohibition on sports betting. The online gaming market is the best it’s ever been, and if you want to try it out for yourself, finding an NJ online casino welcome bonus is as easy as ever with the help of iGaming NJ, they also offer guides, news, articles, and much more.
Tens of millions are being spent by businesses as they compete for the top spot in a market that appears to be considerably more lucrative than anticipated, especially considering its rise during the pandemic and continued growth after brick-and-mortar casinos opened their doors once again.
According to market research company Ibis World, in 2021, the US sports betting industry was around 17 times larger than the UK market and was worth bringing in around $55 billion annually.
What Will the Future Bring For Entain and Flutter?
It will be intriguing to see how Entain and Flutter do in that race. Both companies have established significant partnerships with US companies, but Entain’s relationship with its American ally MGM Resorts is what will draw the most attention. It is crucial to secure major partnerships in markets like Nevada, Michigan, and New Jersey, which have long histories with offline and online gaming.
MGM made an $8 billion acquisition offer to Entain in January 2021, but Entain rejected it because it preferred to control rather than share the profits from its joint venture, BetMGM. When MGM withdrew after receiving negative feedback from the Entain board and investors, the six-month period during which takeover laws prohibited it from having another tilt began.
The board was correct to send the American suitor back over the Atlantic after the moratorium ended in mid-July 2021, according to Entain’s share price since that time. In late 2021, Entain’s stock market valuation has increased to over £11 billion, thus, MGM will have to work hard if it wants to succeed. Investors will be licking their lips since the rapid internet movement during the epidemic has already increased the value of their assets.
Underage gambling is an offence. You must be over 18 years old to gamble.
Any form of gambling should always be fun, playing in a way that is right for you. It’s good to set limits, take time out or set up reminders.
Please gamble responsibly and in moderation.
For more information on the tools available to help to keep you safe or if you want advice or support you can call the National Gambling Helpline on 0808 8020 133 (England, Scotland and Wales or visit Gamblingtherapy.org).
