Sportech Receives Licensing Approval in the New Jersey Online Gambling Market
Sportech has received an important license to operate in the New Jersey gaming market. In doing so, Sportech Racing became the first European-owned gambling business to have entered the New Jersey online gambling industry (barring UK companies).
Last month, Sportech and NYX Gaming signed a deal with Resorts Casino to provide software support for the Atlantic City casino’s online casino and poker room. Resorts Casino signed a similar deal with PokerStars in June 2013, but that Resorts/PokerStars license application has been on hold for almost a year and a half now. In lieu of that arrangement, Resorts Casino decided to launch a gaming portal. The PokerStars deal might eventually become active, but for the time being, NYX Gaming and Sportech Racing, which is listed on the London Stock Exchange, are the partners for Resorts Casino Online.
While Sportech made a significant gain in the US market, the software and data service may have opened the door to bigger gains in the future. Operations in New Jersey may not see a major expansion in the short term, but New Jersey licensing acts as a 5-star indicator to other jurisdictions investigating a gaming company for licensing in their own regions.
Sportech’s Racing Services
Sportech has a lengthy history in the New Jersey gambling industry. The company processes all wagers for the land-based racing industry, and thus has a connection to all the racecourses in the Garden State. Sportech also supports off-track betting facilities, while providing gaming technology to several of the brick-and-mortar casinos in Atlantic City.
The company’s Mt. Laurel-based data and operations center provides support for £7.4 billion in wagers every year, servicing gaming operations in the United States, Canada, South America, and the Caribbean. The data center also serves as the backup data center for Sportech Berlin’s data center, which handles the company’s European customers. The two facilities take nearly $10 billion in bets every year.
For the purposes of licensing, Sportech Racing only received authorization for “advance deposit wagering”, a euphemism for online gambling. Collecting a New Jersey gaming license is considered a key endorsement of a company, due to the rigorous vetting process required.
Regulations in the Americas
The license should have a beneficial impact on Sportech’s business throughout the Americas, where regulated environments tend to follow the lead of the Americans. If a respected gambling regulator like New Jersey gives the green light, then many countries in Latin America are likely to provide approval, too.
Ian Penrose Press Release
Ian Penrose, CEO of Sportech, elaborated on the importance of the licensing. Penrose said, “We are delighted to have been awarded our licence in New Jersey, which we believe is among the first, if not the first, to be acquired there by a European gaming group.”
“It [New Jersey licensing] is viewed as a ‘Gold Standard’ in licensing in the sector globally, and is an endorsement of our standards of operations and the qualifications of our directors and senior employees. I thank all those who have been involved in the process to help us get to this point, and look forward to building on the opportunity that this licence award presents to Sportech.”
Signs Deal with Apuesta Hipici
The news comes as Sportech continues to expand its operations in Europe. The gaming data company signed a deal with Apuesta Hipici y Deportiva Iberia, a leading Spanish sports betting company. Under terms of a deal, the Sportech software Quantum System will be used to provide betting services for Apuesta Hipica y Deportiva Iberia, which provides racing and betting services to the Gran Hipodromo de Andaluci in Seville, Spain. Support is expected to be handled through the German data center.
Deals with Betfred and Tote Ireland
Sportech’s other European operations include sports betting services for Betfred Totepool, Dankse Spil, and Tote Ireland. Andrew Gaughan the president of Sportech Racing & Digital, says that their Spanish client are going to find Sportech’s “systems and services” enhance their business.
While such statements might sound like press release material to the public, it is an important partnership for both companies. Apuesta Hipici should be able to improve its technical capabilities, while Sportech grows its European operations in a significant way. Nearly 80% of its revenues come from the Americas, so expanding business in its home sector is a boon.