The state-by-state partnership between the sportsbook FanDuel and the sports betting technology company IGT has been expanded to cover the entire US market. This recent announcement through numerous news sources rocked the entire sports betting industry.
The emerging US market is viewed as a crown jewel for international players. As more and more induvial states approve legal sports betting within their borders, the overall US market potential continues to explode.
The current situation has been a powerful deterrent to growth in the short-term. Most of the major players are taking a long-term approach to their strategic plan to capture market share in the US.
FanDuel has already established itself as one of two major sportsbooks in the US covering legal betting markets and has also developed the FanDuel app. DraftKings Sportsbook is the other book leading the way. Owned by the Ireland-based bookmaking company Flutter Entertainment, FanDuel is well-positioned to maintain a dominant role in the US for years to come and a large fan base has already signed up for FanDuel.
IGT is short for International Game Technology. Based in London, this corporation is a giant in the global gaming industry. Its primary business runs the gambit from online games to online gambling software systems. The company has established a US business presence in Las Vegas, NV and Providence, RI.
These two companies first joined forces in 2018. This followed the legalization of sports betting in the US on a state-by-state basis. New Jersey spearheaded that fight and it was the first to market. Nevada was previously the only US state grandfathered to offer legal sports betting.
Their first joint collaboration was at The Meadowlands Racetrack in East Rutherford, NJ. To this day, this remains the biggest retail sportsbook in the country based on the total handle.
Gross revenue for online betting at the Meadowlands topped $49.5 million in June (year-to-date) despite the suppressed sports betting market. Second on the list was Resorts Casino with $33.2 million. These, including the Resorts online sportsbook, are the only two legal US online books to crack the $10 million mark this year.
Further expansion led to Pennsylvania online sportsbooks and West Virginia online sportsbooks. This past May, Colorado became this partnership’s ninth sports betting market in the country now offering Colorado online sportsbooks.
The expanded agreement sets the stage for rapid expansion into numerous states over the coming months and years. IGT’s PlaySports platform will be used to power all of FanDuel’s sportsbooks in the US.
As another lucrative aspect of this expanded partnership, FanDuel will offer IGT’s PlayDigital’s PlayCasino games for users who create an account. This market covers states operating online casinos. The structure of this new deal carries over through 2024.
This is truly a major win-win for both companies. The initial reaction from investors drove up the price of IGT stock (NYSE: IGT) by seven percent. Flutter Entertainment trades OTC at PDYPY.