Ladbrokes Purchases Stake in Stadium Technology

UK gambling giant Ladbrokes has begun taking steps in anticipation of entering the US market. Ladbrokes, which owns over 2,000 locations in Europe and has a strong online presence, paid $3 million in exchange for a 65% share in Stadium Technology, a Las Vegas software development company.

Stadium Technology already has a fairly strong foothold in the American market. The company supplies technology to a number of Las Vegas casinos, and is also utilized in the NFL parlay betting that is allowed at three Delaware race tracks.

While Ladbrokes may have purchased the company simply to gain an American presence in sports betting, prospects for expansion in that sector may be limited. Only four states are legally allowed to offer sports betting in the USA, and currently, only Nevada and Delaware take advantage of that opportunity. While the Department of Justice recently reinterpreted the Wire Act in a way that would allow for more online gambling, it would still regard sports betting as illegal.

However, it is also possible that Ladbrokes may be taking a wider view. By holding a stake in an American company, it may allow them to gain access to the online gambling market at large in that country – one that could become very lucrative should state or federal regulation result in many Americans having the opportunity to play online poker or casino games.

“The size of the US market and potential for positive regulatory change in the coming years make it a sensible place to establish a presence,” said Richard Glynn, CEO of Labrokes. “Stadium Technology is already one of the key software suppliers to casinos in Nevada and Delaware and it has the potential to expand.”