The American sports betting industry is at a crossroads. On Dec. 17, the Senate Judiciary Committee will hold a hearing “America’s High Stakes on Legalized Sports Gambling.” It would involve potential regulatory changes and challenges within the industry which creates risks. But also opens opportunities for the bookies. Following these changes is important so you can adjust your strategy. Keep your betting operation profitable in a changing environment.
Dovetailed With Industry Problems.
The hearing comes amid increasing calls for stricter oversight and a fairer competitive landscape in sports betting. It is therefore imperative for bookies to keep abreast of such changes.
Antitrust Allegations Against Industry Titans
The two market leaders in the U.S., FanDuel and DraftKings, are facing scrutiny for reported anti-competitive practices. Now Senators Mike Lee and Peter Welch have urged the Federal Trade Commission (FTC) to investigate these operators for attempting to collude with the Sports Betting Alliance to prevent upstart brands from getting deals.
While this may not directly affect independent bookies, the investigation’s result might change the competitive landscape. If tighter regulations level the playing field, it would allow smaller operators to gain market share. Only bookies partnered with a solid Pay Per Head (PPH) provider. Like VIP Pay Per Head will able to better adapt and benefit from such changes.
The SAFE Bet Act: A National Framework
Sen. Richard Blumenthal has co-authored a potential game-changer in the Supporting Affordability and Fairness with Every Bet Act (SAFE Bet Act). This plan aims to create national guidelines to govern sports betting, setting advertising limitations and consumer protections such as deposit limits. As well as an outright ban unless states apply again for it to be legalized through the U.S. Justice Department.
The Act has seen some pushback, as some critics have pointed out the benefits of state-by-state frameworks. But if actioned, it would affect the way bookies operate and promote their business. That is why PPH systems that offer compliance tools and adaptable features will be so important in navigating these changes.
What Do The Bookies Need To Do?
- Keep an Eye on Regulatory Changes: Stay tuned for the results of the Senate hearing and any references to legislative action. Knowing how the new rules apply will enable you to quickly and successfully adapt your operations.
- Pick a Trustworthy Pay Per Head Partner: The problem with uncertainty is that confusion is unavoidable. The good news is that a reliable PPH provider such as VIP Pay Per Head can assist bookies in working through uncertainty. You’ll also have the tools you need to adapt to whatever regulatory changes come your way, with features like automated compliance updates, flexible market offerings, and real-time reporting.
- Diversify Your Markets: So diversify your betting offerings, as regulations change, your risk will be minimized. Other than core markets, such as NFL and NBA, extend to other niche sports for international events that reaches a diverse audience.
- Focus on Customer Trust: Communicate true modality to your clientele. Keep your programs safe, simple and secure. You are a major competitive advantage in cases where new regulations will set much stricter requirements.
How VIP Pay Per Head Keeps Bookies in the Game
The right partner can make all the difference in uncertain times. For bookies to be successful in a dynamic market, VIP Pay Per Head offers the tools and support needed:
- Robust Compliance features: This ensures you always remain compliant to legal requirements due to various regions.
- Scalable: Go fast regardless of traffic and new markets.
The Road Ahead
The Senate hearing of December 17, 2019 and subsequent legislative proposals represent a watershed moment for sports betting in the United States. These developments create both challenges and opportunities for the bookies. With the relevant information, selecting the correct PPH solution provider and maintaining a focused mindset, set yourself up for success in the betting business.
You can be ready to not only brace for any regulations—but also capitalize when given the chance with VIP Pay Per Head. Be prepared to lead, not follow as the industry matures.
