PASPA repeal creates “significant opportunity for growth”

PASPA repeal creates “significant opportunity for growth”

Thursday, June 7, 2018 Posted by Michael Lawson
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RB Capital is an M&A specialist headquartered in Singapore.

The repeal of PASPA and the widening US sports betting market throws up a significant growth opportunity for operators, but only if firm’s act shrewdly and “balance opportunity with value at risk”. That’s the view of Ben Robinson, Co-Founder of M&A specialist RB Capital, who spoke to about key drivers of the current M&A culture, and how affiliates can best prepare their business for a sell.

Robinson also discussed how this acquisition agenda is affecting the sector’s executive leadership: “There will continue to be ongoing pressure to consolidate at the top, particularly with the small to medium tier operators, especially in the UK given the impending changes to gaming duty.

“Companies in this category that fail to acquire and/or find a suitable partner to merge or be bought in turn, are likely to face difficult conditions once the full impact of the government taxes takes effect, not to mention the upcoming UKGC and Advertising Standards measures on bonuses.

Robinson continued: “Other forces at play such the US regulation will create a significant opportunity for growth, but the lack of state-based momentum in the short-term coupled with fierce competition to acquire assets of interest in these markets will pose significant volatility, and interested parties will need to balance opportunity with VaR (value at risk), or else expect to overpay for assets in the inevitable land-grab.”

Totally Gaming says: RB Capital is something of an expert in the field of M&A, and the firm’s Co-Founder Ben Robinson has provided some interesting analysis with regards to executive leadership and how the US market will develop post-PASPA. It’s clear that the repeal presents a fantastic opportunity for betting firms, but only if they exercise caution and use common sense.


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