Playtech eyes U.S. sports betting market

Playtech plc CEO Mor Weizer raised some interesting possibilities available to the company in a post-results press conference following the release of the group’s H1-2018 results Friday, suggesting that the burgeoning US sports betting sector could be of strategic interest in a B2B sense for subsidiary Playtech BGT Sports (PBS).

PBS operates Playtech’s sports betting platform, which is active internationally and most recently has become an important element in the Mexican regulated sports betting industry following the signing up of major local firm Caliente (see previous reports).

Caliente is respected as a major sports trader in both Mexico and US terms, offering as it does wagering on US sports markets, and Weizer briefed reporters on the implications of that for expanded Playtech activity in the United States, observing:

“In terms of the opportunity in the US, the capabilities of PBS position Playtech with a compelling offering. Playtech’s sportsbook is ready now and is already one of the largest traders in US sports due to our activity in Mexico, whose most popular markets are US sports.”

Weizer revealed that Playtech is in the process of applying for a New Jersey licence, but hinted that the company has wider US sports ambitions as well. He suggested that the PBS sportsbook solution is ideally suited to the situation in the US where gambling laws are the prerogative of individual states, resulting in state-by-state fragmentation of the sports betting market.

He noted that the PBS system is extremely scalable, and that a single casino operator wishing to enter the sports betting market in a particular state could use the PBS solution, which is easy to integrate, well-proven commercially and technically, and regulatory compliant.

He added that these qualities offer the potential to save the operator substantial outlay in development and all the other problems inherent in building a capable solution from the ground up.

With an international brand presence, a strong product and contacts in the US industry through previous initiatives in the region, Playtech would appear to be well set to increase its US activity.

However, as some observers have already pointed out, the sports betting market since PASPA was overturned earlier this year has been very busy as major companies hurry to build commercial, marketing and technology partnerships.

Real success may depend on how quickly Playtech is able to get into the US market in practical terms.