Ladbrokes Acquires Stake in US Gambling Firm

Leading UK land and online betting firm Ladbrokes has a moved a step closer to tapping into the lucrative US online gambling market - when and if it is legalised - by strategically acquiring a 65 per cent stake in Stadium Technology Group for the amount of $3 million.

Based in Las Vegas, Nevada, Stadium Technology Group is a successful company specialising in the development of sports betting technology and software. As the majority shareholder of Stadium Technology, Ladbrokes will be well placed to hop into the US gaming market if and when gaming regulations are passed at state and/or federal level.

Stadium Technology Supplies Sports Betting Solutions

Stadium Technology is a well known supplier of sports betting software solutions to a host of leading sportsbooks and third-party gaming suppliers in the states of Nevada and Delaware. As such, its client base is an impressive one and includes such gaming stalwarts as The Venetia, Treasure Island, the Palazzo, M Resort, Hard Rock, Golden Nugget, Crystal Palace, Cosmopolitan and Atlantis in the Bahamas.

Said Ladbrokes CEO, Richard Glynn, '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. Stadium Technology is already one of the key software suppliers to casinos in Nevada and Delaware and it has the potential to expand.'

Ladbrokes acquisition of Stadium Technology is one of many recent international acquisitions of US gambling firms is one of many of late after the US Department of Justice (DoJ) issued an opinion at the end of last year that the Wire Act of 1961 does not in fact apply to any form of online gambling other than sports betting.

This revelation prompted much speculation globally that a legalised and regulated US online gambling industry could be on the cards. It's no secret that the US boasts the most lucrative online gambling market in the world, but one that has been dramatically 'dumbed down' as a result of the US government's anti-online gambling stance.

UIGEA Changed the US Online Gambling Market

This stance was made official with the passing of the Unlawful Internet Gambling Enforcement Act (UIGEA) by Congress in October 2006, which was shortly thereafter signed into law by then President George W. Bush.

And between UIGEA and the Wire Act, the DoJ has justified going after what it considers illegal offshore online gambling operations and their executives. However, after the recent Wire Act 'bombshell', online gambling proponents are hoping that the popular internet activity will soon be legalised at both a federal and state level.