The newly regulated US betting and gaming space contrasts significantly with its European counterpart, and Gamesys CEO Lee Fenton believes that igaming will be crucial to the sector’s profitability and development.
Speaking at a Macquarie Capital-organised panel hosted by the firm’s Senior Managing Director, Consumer, Gaming & Leisure, Sung Chun, Fenton shared his opinions on future trends in the US betting and gambling industry, shortly after the finalisation of his company’s acquisition by Caesars Entertainment was confirmed
When asked by Chun about what lessons can be learned in the US from the European sector following the abolition of the Professional and Amateur Sports Protection Act of 1992 (PASPA), Fenton remarked: “Firstly, we believe omnichannel will be important in the US. The second difference I’d point out is how people are going to make the till ring? Where do you find long-term sustainable profitability in the market?
“You mentioned the repeal of PASPA that has brought about this huge rushing sports legislation in some states but, of course, far from all are legislating igaming.
“I think one key lesson for the US from Europe is that igaming is absolutely critical to driving the profitability of business and it is so much more predictable and it allows you to continue to invest, enhance your product and enhance service levels. I think igaming becoming more prevalent across the US is super-key for all of us.”
Additionally, Fenton pointed to responsible gaming as a key requirement for the burgeoning US market, arguing that operating in a socially sustainable manner ‘is going to be really important’ for both American sports betting incumbents and prospective companies.
“It won’t be long before the first media reports hit about the ‘next pandemic’ which is online gambling and how that is taking over US consumers,” he added.
“Operators in Europe have been facing this for a few years now, so having responsible practises baked in not just to your operations but also to your technology, I think it’s going to be a good lesson to learn for those looking to grow sustainably in the US.”
Also appearing on the panel were Matt Davey, CEO of Tekkorp Capital, Benjie Levy President and Chief Operating Officer at theScore and Dermot Smurfit, CEO of GAN.
When quizzed about the role the media can play in the further development of the US sports betting and gaming sector, Levy predicted that the media will be key in driving fan engagement.”
“It should be no surprise for anybody that the media is playing a core role in the rollout of sports betting in North America,” he said.
“For the past 50 years, media has sat at the nexus as the driver of fan engagement around sport and media companies from television or radio and now digital, have amassed millions and millions of sports fans who are flocking to their platforms to follow, to watch the games, to engage with, you know, with other fans around the games.”
Source – Macquarie Group YouTube Channel