The old expression, “a rising tide raises all ships” is rarely applied to the gambling industry but it’s particularly apt when describing the new symbiosis between the US gambling market and UK gambling operators. As it turns out, that rising tide of regulated sports betting in America is lifting up the profits of UK operators such as Entain and Flutter.
According to a recent report in the UK Guardian, several British gambling operators that have paired with US operators are reporting big boosts in 2020 profits. The US market turned out to be a lifeline in a year where pandemic-induced chaos threatened to sink everyone.
For example, the Guardian reports that Entain, operator of Coral and Ladbrokes, saw its 2020 profits boost considerably, despite a flat revenue line. The company has benefited greatly from its association with BetMGM, a company it operates with MGM Resorts.
That US gambling operators are seeking the wisdom and know-how of their UK counterparts isn’t particularly surprising. UK companies like William Hill, Paddy Power and Ladbrokes have been running online sports betting operations for decades and know what they’re doing. There’s no point in re-inventing the wheel for American gamblers when UK operators have already built a full operational vehicle.
The big exception to this phenomenon appears to be William-Hill, which reported an astonishing 61 percent decline in profits for 2020. But that doesn’t mean that profit isn’t in their future as more and more US States decide that the benefits of regulated sports betting are worth pursuing.