Expanding an existing partnership
Scientific Games has confirmed reports that it will be providing FanDuel with the technology to operate its online gambling business across the United States.
Today’s official confirmation issued by the gambling services provider follows an initial report from Bloomberg on Monday. The report said Scientific Games is set to provide FanDuel with the OpenBet betting platform in states where it is currently licensed to operate an online sportsbook. It added that the offering will also extend to other states FanDuel will eventually launch in.
Scientific Games is already a major technology provider to FanDuel’s parent company, Flutter Entertainment, across its European operations. The recent announcement sees it expand its existing partnership to cover “online and mobile sports betting and iGaming content offering with FanDuel in the United States.”
Good news for Scientific Games
Following Monday’s news of a potential partnership, Scientific Games shares rose by 8.2% in New York, the biggest gain seen since November 2019. The stock price is now back in the green for the year to date.
Scientific Games shares rose by 8.2% in New York
The crux of the sports betting technology Scientific Games will be deploying comes through an acquisition made in 2018. This saw the Las Vegas firm purchase sports betting technology company NYX Gaming for $631m.
Continuing growth for US sports betting
There are currently 14 states that have sportsbooks open for business. Seven other states have passed legislation to legalize the activity, but their sports betting operations are yet to launch.
According to Morgan Stanley estimates, the sports betting market in the nation will reach $7bn by 2025, marking a rise from the previous forecast of $5bn by the same date.
FanDuel’s ongoing evolution
FanDuel is at the forefront of the sports betting market. With more states constantly looking to allow online betting, the company is always looking to extend its presence in the sector.
FanDuel users recently experienced certain technical issues when using the company’s sportsbook to bet during major events. This may have been the catalyst to the company’s search for a new technology partner.
the catalyst to the company’s search for a new technology partner
As well as the sports betting market, FanDuel is now part of the online casino sector. The company’s first offering of this kind was launched in Pennsylvania in January. While limited, the product is expected to see significant expansion in the future.