by Renee Israel
UK land and online betting firm Ladbrokes has acquired a large stake in the
Las Vegas-based Stadium Technology Group, a software supplier to large operators
in the U.S. sports betting market, with a view to entering the U.S. online
gaming market once it is legalised and regulated.
Founded in 1886 in the UK purely as a sportsbook, Ladbrokes has diverged into
the online sports betting, casino, poker, bingo, games, lottos, mobile and live
casino markets, and since relocated to the online gambling-friendly jurisdiction
of Gibraltar.
Stadium Technology Group, which is focused on in-game betting applications,
boasts clients in more than 60 locations throughout Nevada, Delaware and the
Caribbean. Its large clients include the Atlantis Resort and Crystal Palace in
the Bahamas, Scientific Games in Delaware; and the Cosmopolitan, Golden Nugget,
Hard Rock, M Resort, Palazzo, and Treasure Island in Las Vegas.
A Ladbrokes Media Centre press release provided some commercial details of
the acquisition. The UK gambling firm paid $3 million for a 65% stake in Stadium
Technology Group. It also has the option to buy the remaining 35% of the
software provider over the next five years on a performance-related basis.
The objective of this acquisition for Ladbrokes is to gain a foothold in
the U.S. sports betting market.
Ladbrokes CEO Richard Glynn stated in a press release, "The size of the U.S.
market and potential for positive regulatory change in the coming years make it
a sensible place to establish a presence. Stadium Technology is already one of
the key software suppliers to casinos in Nevada and Delaware and it has the
potential to expand."
Present U.S. Sports Betting Market Scenario
Ladbrokes has made its foray in the U.S. sports betting market
at an opportune time. A number of American states have stated their intent to
legalize and regulate some online gambling verticals.
The state of New Jersey has taken the additional step of
enacting a law that will legalize sports betting in the state. In fact, New
Jersey Governor Chris Christie signed the bill just two days before Ladbrokes'
acquisition announcement. However, New Jersey will first have to get the federal
ban on U.S. sports betting reversed.
Presently under the Professional and Amateur Sports Protection
Act (PASPA) of 1992 sports betting is banned in all American states except
Delaware, Montana, Nevada and Oregon. Since Stadium Technology Group operates in
Delaware and Nevada, Ladbrokes will not face an initial problem.
If New Jersey succeeds in overturning PASPA, then the others
states will also take enabling action and the US sports betting market will open
up completely. Ladbrokes will then benefit from already having a foothold in the
U.S. sports betting market.
