Why Betfair is betting on America
As it did in the UK when it launched nine years ago, Betfair stands at the forefront of revolutionising online wagering in the US, says Betfair US head Gerard Cunningham.
THE ENTIRE ONLINE GAMING industry has always looked at the US as the holy grail of betting. With its unparalleled internet population of devoted sports fans and card players, operators view the US as a market where business will thrive. While many companies have accepted online wagers from US citizens for several years, others, like Betfair, have not.
In just nine years, Betfair built a multi-billion dollar online gaming business with customers from over 140 countries, but in that time, the company never accepted a wager from the US. Betfair maintained one of the most conservative regulatory policies in the gaming world. While Betfair’s position meant the company could not legally offer wagering to US citizens, it continuously searched for a method to enter the US market that aligned with the legal counsel it received.
That opportunity came in January 2009, when Betfair purchased TVG “ the largest legal, online wagering business in the US. Betfair is incredibly excited about owning TVG. The acquisition was a coup that provided it with immediate access into the US market by obtaining a highly successful company with a large active customer base.
TVG.com is licensed in 16 US states to take online bets on horseracing and accepted over US$500m in wagers last year. The TVG television channel is available in more than 32 million homes across the US and airs more than 15 hours of live sport every day. Together, these assets offer Betfair a real opportunity to build a meaningful presence in the US.
Betfair revolutionised wagering in UK by introducing a betting exchange for horseracing, a model that has been extremely successful in every market it is offered in. The Betfair exchange has also attracted a new generation of punters to horseracing, and governments and horseracing have benefitted from having new, internet-savvy players enter the game.
Recently, there have been several discussions at the Congressional level about easing US online gaming regulations. While we would love to offer our customers more ways to wager online, we don’t anticipate any radical changes in the near future.
The Betfair exchange is extremely popular in other markets, and we believe the introduction of a betting exchange would help reinvigorate US racin “ a wagering business that shrunk 17% in June as the negative impact of the global economic crisis on the horseracing industry increased significantly. Like the remainder of the industry, Betfair hopes the US government re-examines its position and decides to regulate other forms of online wagering that will benefit both the country and horseracing industry.
For now, our emphasis is on expanding the TVG business by stimulating interest in US horseracing and providing unparalleled customer experiences. In the last few months alone, we’ve added nearly 30 racetracks to TVG’s television and wagering coverage and introduced a new escrow account, assuring our customers that their funds are safe.
We are also updating TVG.com to become a better resource for bettors. The new Web 2.0 experience includes the unveiling of a high-quality video streaming service and the launch of the TVG Community site where horseracing fans can participate in forums and live chats, follow expert blogs, and interact with TVG horseracing experts and hosts. We believe these initiatives will help attract new bettors to the sport and bring horseracing into the 21st century.
Betfair is in the US for the long haul. We’re focused on operating a legal American gaming business that offers consumer protection, creates jobs and contributes to the US economy.