UK based betting exchange Betfair is the latest in a long line of online gambling majors planning an entry into the US market.
Presently, the US market is largely off limits to online casinos sportsbooks and poker rooms courtesy of the UIGEA which makes it illegal for banks and payment processors to facilitate payments between US residents and online gambling operators. But payment facilitators and operators beyond the jurisdiction of the US Government are still happily taking US players, rendering the law somewhat ineffective.
Further, pressure from the EU to move away from a protectionist trade policy with regard to online gambling and a growing recognition of the need to bolstering treasury coffers to fill holes in stimulus driven government deficits have many believing the status quo is soon to change. Goldman Sachs for one have reported their belief that the US Government will soon move to access the estimated $12 billion market that would be generated from legalized online poker and casinos through new laws.
Betfair, like many other online gambling majors, are now positioning themselves for this event. They have started expanding their Silicon Valley presence with additional technical capabilities for a US centric operation, and have purchased online horse racing operation TVG, with plans to use a wagering presence as an entry point to a wider offering once laws permit.
From Betfair's US head Gerard Cunningham, "When other forms of gambling become legal, we'll be ready...Until then, if it's even a grey area we're not going to touch it."
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