GGRAsia – U.S. sports bet clarity could benefit Sci Games: Telsey

U.S. sports bet clarity could benefit Sci Games: Telsey

Apr 06, 2018 Newsdesk Latest News, Top of the deck, World

Casino equipment manufacturer and lottery services provider Scientific Games Corp will potentially benefit if the legality of sports betting nationwide in the U.S., is clarified by that nation’s Supreme Court, says brokerage Telsey Advisory Group LLC.

“Currently overlooked is the potential growth from the legalisation of sports betting in the U.S.,” said analyst Brian McGill in a note on Scientific Games issued on Wednesday.

“The company would potentially benefit from sports betting due to its acquisition of [NYX Gaming Group Ltd]. Basically, this would provide the systems for operators for sports betting,” he said.

The analyst added: “We think the general rule of thumb is that the company would get roughly 10 percent of any potential win for its services… It is too early to assign a value for the U.S. legalisation to Scientific Games, but it does remain a long- term catalyst for growth.” In the U.S. casino sector, the term “casino win” usually refers to the amount of betting stake money retained by the gaming operator.

The acquisition of NYX Gaming by Scientific Games was completed in January this year.

The U.S. Supreme Court is currently considering a case filed by the state of New Jersey that seeks to overturn a federal ban on sports betting. The Professional and Amateur Sports Protection Act – also known as the Bradley Act and effective from October 1992 – rendered sports gambling illegal in most of the U.S. Only a few states, including Nevada, were exempted from such prohibition.

The Telsey note said that a decision by the U.S. Supreme Court on the matter “will come before the end of June of this year”.

“Right now, 18 states have passed or are considering legislation to legalise sports betting. The studies have ranged from the illegal sports betting handle in the U.S. to range from US$100 billion to US$400 billion. This would mean sports betting win of US$5 billion to US$20 billion”, the document said.

But it said that the projection is only valid if sports betting is legalised in all U.S. states.