In 2018, with the overthrow of the Professional and Amateur Sports Protection Act (PASPA), the USA were given the opportunity to legalize sports betting. Previously, gambling and sports betting were effectively banned except for a few states (including Nevada). Since the legalization, the US has been transforming into the world’s fastest growing sports betting market since the.
But what do bookmakers have to consider if they want to offer sports betting in the USA? In the following article we have summarized the most important facts on the subject.
More than 30 states are currently offering legal online sports betting. Even more states are expected to follow by the end of the year. Industry analysts predict that almost 80 percent of US states will offer some form of legal sports betting within a few years of legalization.
The figures from the USA also confirm that the modern iGaming industry has fully embraced digitization. According to Gaming Today, bets placed online accounted for at least 89% of stakes in August 2021. This trend is particularly evident in the states of New Jersey, Pennsylvania, and Illinois. In the top-preforming state of New Jersey, bettors placed over $ 1 billion in September 2021. Over 92% of these bets were placed online. In the states of Illinois and Pennsylvania, which together with New Jersey are at the forefront of the online betting industry, 380 million and 318 million US dollars were placed online in the month of August (Legal Sports Report).
If you look at adjusted revenue, online sports betting generated around $ 50 million (GGR) in New Jersey in August. Illinois had the second highest online revenue at $ 26 million. These numbers rose significantly with the start of the football season in September. The growth of the sports betting market within the US is enormous. Still, industry experts believe that we are only at the beginning of the development of this market.
The US sports betting market
The American sports betting market is characterized by its partnerships. Major league franchises have signed lucrative, exclusive, multi-year sports betting deals. The Major League Baseball (MLB) Chicago Cubs’ deal with DraftKings is reportedly valued at around $ 100 million. The National Basketball Association (NBA) also expanded its partnerships with the Genius Sports Group (GSG) and Sportradar.
In addition, many leagues have taken a giant step towards providing real-time data to licensed league operators. These partnerships that can be successful for both leagues and operators while delivering a better experience for fans and customers. The growing focus on sports data has made fantasy sports more popular. However, from the perspective of sports betting, there is also a greater tendency towards data-driven in-play bets.
It is true that not much time has passed since the legalization and the ongoing regulation of more and more states. The unforeseen conditions due to the pandemic have also made it difficult to make sound forecasts about this market. Nevertheless, it can be said with certainty that the USA is currently one of the most promising markets. As such it holds great opportunities for betting providers.
The specifics of sports betting in the USA
The opportunities of the US market also come with their own set of challenges, which are explained in more detail below. There are three main differences in betting behavior:
Sports betting in the USA looks different than it does in Europe. This is most evident when you look at the odds. While in Europe a decimal rate is multiplied by the stake as a factor, rates such as “+300” or “-175” are common in the USA. If the sign is positive, the net profit is displayed for a stake of 100 dollars.
So “+300” means that if the player wagered $ 100, they would get a payout of $ 300 if they win the bet. If the sign of the odds is negative, the value shows how much you have to bet to win 100 dollars. So “-175” means you would have to bet $ 175 to win $ 100. This difference also reflects the higher average stakes per bet compared to most European markets.
Not only do the odds look different in the US, but also the bet slip. Because here you will find special types of bets such as “Round Robin”, “Reverse Bet” or “Parlay”. It is important to conform to the habits of the American sports betting public if you want to be successful as a betting provider in the USA. Single, combination and system bets alone, as is common in Europe or Africa, will hardly be enough to convince the majority of US players.
Betting offer with American Sports
What would America be without baseball, football, and basketball? American sports are essential to survive as a betting provider in the US market. And that includes not only the big leagues like NFL, NBA etc., but also college football, for example. The European frontrunner soccer, on the other hand, will again be of far less interest for US players. It turns out that the typically European approach to sports betting is unlikely to lead to success in the USA.
Arland works with flexible front ends and is a certified partner of Betradar. That’s why we can fulfill (almost) all the wishes of American sports fans!
As in every young market, the compliance requirements surrounding sports betting in the USA will change steadily over the next few years. That’s why the flexibility of the technological platform is of crucial importance.
Since sports betting providers are only allowed to offer bets within the states in which they hold a valid license, verifying the origin of players is a must. Cross-state bets can be fatal for providers and lead to the withdrawal of the betting license. Providers should therefore pay close attention to the implementation of efficient and reliable KYC processes.
Compliance of the platform
The betting platform may have to meet different requirements depending on the state. It is therefore advisable to use technologies that have already proven themselves in strict compliance markets in terms of their efficiency and reliability.
In order to be able to map all these requirements on a technical level, you need a flexible platform based on the latest technology. This needs to be combined with a committed, experienced team. At Arland, we have been developing software for the iGaming industry since 1997 and have extensive experience in a wide variety of markets on four continents. Bookmakers in South America, Europe and Africa as well as parts of Asia have been using our software successfully for decades. Due to our great experience and our innovative sports betting platform Bookmaker NEXT, we are the perfect partner to get started in the USA.
Bookmaker NEXT – the software for sports betting in the USA
For iGaming providers who want to establish themselves with sports betting in the USA, the Arland System Platform is an all-in-one solution that can professionally cover all areas of the sports betting business and offers the flexibility required for sustainable growth .
Especially if you plan to have your platform meet the requirements of various legislatures and certifications, hosting on your own infrastructure is vital to ensure the required flexibility. With your own System Platform, you can more easily adapt the parameters and services of your platform to your target markets. THere´´ and meet requirements such as those of the US market with ease.
But not only the quality of the software, but also the intellectual property are of decisive importance. Some of the world’s leading bookmakers have ultimately all created their own technological platform. Others have developed existing technology and adapted it to their requirements. Among other things, there is no longer any dependency on a software company. A key point especially in discussions with investors! The development of your own software platform requires industry experience, years of development times (> 4 years) and a suitable team of senior software developers. This is why we offer the possibility of a Source Code Option in response to popular requests from our customers.
The Source Code Option gives the management significant advantages:
- Securing the Source Code of Bookmaker NEXT -> You have the right to purchase the source code in full at the current status at any time within the option period (mandatory 2 years with extension).
- Low capital investment when purchasing the Option with full deduction from the Source Code purchase price.
- Possibility to acquire intellectual property – security of the software for investors and capital providers.
The Source Code option enables system customers to quickly switch to the Bookmaker NEXT system. It further entitles them to purchase the Bookmaker NEXT source code for 24 months.
Arland is available as a technical partner and guarantees extensive knowledge transfer, including 24/7 technical support. Even after the Source Code has been acquired, the system can still be managed by Arland.
Would you like to offer sports betting in the USA?
Contact us at [email protected]. Our team will be happy to answer your questions!