Two leaders of the internet sports betting and online gambling industries are getting together. All in anticipation that New Jersey will be awarded the right to launch legal sports betting by the Supreme Court of the United States this year, which means they can start taking bets online.
SBTech, a leading provider of managed sports betting solutions to the online gambling industry around the globe, announced Monday it has launched a strategic relationship with online gambling software provider GAN.
GAN already provides the online gambling software platform for Betfair (now FanDuel NJ) and its NJ online gambling site. Plus, the company provides real-money and social casino software platforms for dozens of casino operations across the US.
This includes the online social casino for TEN. A Colorado developer just purchased the former Revel Atlantic City property. It will reopen as Ocean Resort Casino in the summer of 2018. However, there has been no word regarding the future of the existing social casino or the potential for launching a real-money online casino product under the Ocean Resort Casino name.
The NJ Department of Gaming Enforcement also granted GAN a Casino Service Industry Enterprise license in April 2017. This would presumably open the door for the company to provide online gambling and sports betting software platforms to even more operators in New Jersey.
Integrated sports betting and online gambling software
According to a joint press release, SBTech’s sports betting solution will be integrated with GAN’s online gambling software platform.
The companies say the partnership will put them in a position to lead the online sports betting market in the US. As long as the US Supreme Court overturns the current federal ban on sports betting.
Sports betting is against the law everywhere except Nevada. Parlay bets in Delaware and Game Square wagering in Montana are also exempt from the Professional and Amateur Sports Protection Act (PASPA). PASPA is the federal law holding the ban in place. It passed in 1992.
Sports betting in New Jersey
New Jersey lawmakers passed a contrarian bill legalizing sports betting at racetracks and casinos in 2011. Major professional and amateur sports leagues, including the NCAA, filed a lawsuit to prevent it.
The courts ultimately upheld PASPA and struck down New Jersey’s new sports betting law.
The state filed a series of appeals that failed. Then it tried again in 2014, passing a second bill aimed at legalizing sports betting across the state. The leagues filed another lawsuit and the courts ruled in their favor again.
The state’s subsequent appeals were denied until SCOTUS agreed to hear its case against PASPA in June 2017. SCOTUS heard oral arguments in the case in December. All signs point to a SCOTUS decision in the case coming in June of this year.
SBTech and GAN
SBTech CEO Richard Carter said if SCOTUS overturns PASPA, SBTech and GAN could take the first online sports bet in the US outside of Nevada:
“GAN is a licensed, trusted partner to more than a dozen US casino operators, and is equipped with unique intellectual property and a proven track record in delivering and growing internet gaming businesses in the United States. This partnership is a logical step for SBTech and allows the company to rapidly introduce its sports betting technology and services to a wide range of US casinos with a view to being the first provider to settle a US sports bet online and on-property in States such as New Jersey and Pennsylvania, in close collaboration with GAN.”
GAN CEO Dermot Smurfit said GAN believes it has found the perfect sports betting partner in SBTech:
“GAN has been asked by several clients to review, procure and support the delivery of a sports betting solution both online and in the on-property retail channel in the event PASPA is overturned. We have conducted a lengthy diligence process in Europe to identify a preferred sports betting partner based on their technical capability, US licensing suitability, ability to integrate seamlessly with GAN’s enterprise software platform and the sophistication of their managed sports services. We are delighted to announce this strategic relationship with SBTech.”
Sports betting legislation across the US
Pennsylvania has also passed legislation allowing online sports betting if PASPA is overturned. Pennsylvania legalized online gambling as part of a comprehensive gambling expansion package passed in October 2017. However, the market has yet to launch with the regulatory and licensing process still underway.
Connecticut has also legalized sports betting if and when the federal sports betting ban is lifted. Indiana and Kentucky have introduced similar bills. Delaware is claiming its existing gambling legislation includes a provision for sports betting. Mississippi says its fantasy sports bill likely includes the same.
Plus, more than a dozen other states, from Massachusetts to California, are likely to introduce sports betting bills this year.