Egaming industry predictions for 2017 – part 11

Alex Brennan, partner, Hudson Sandler LLP

Looking at the industry in 2017 from a ‘City’ perspective there’s one word that remains on everyone’s lips: consolidation. I think there’s a sense out there among investors and analysts that everyone is still in the game when it comes to M&A, which you can see from the sharp share price movements every time we read the latest consolidation tittle-tattle in the press. There will be more gossip, more bumpy M&A sagas and some successful combinations both at the larger and smaller ends of the market.

We’ll also be keeping a close ear to the ground in the US. Whilst Sheldon Adelson was reportedly a big backer of the Trump campaign, we’d be surprised if the President-elect is someone who feels indebted to anyone. We anticipate a wave of pragmatism regarding gambling in the US and believe that it’s a case of when, not if, that market opens up. If we could find odds of around 4 to 1 on the announcement of a pro-online gambling Federal Bill in 2017, we’d have a tenner on it.

Christoph Engelmann, senior associate, DLA Piper and Dr. Michael Stulz-Herrnstadt, partner, DLA Piper

Sports betting – The 16 German states will adopt a new legislation amending the State Treaty on Gambling. The proceeding to issue sports betting concessions will finally gain momentum again as the states agree on a new competent authority and on lifting the limit of 20 concessions. The 35 operators that have been found to meet the requirements for a concession in the 2012 proceeding are intended to receive a preliminary concession. Other sports betting operators will have to prepare their documents in order to participate in a new concession proceeding.

European focus – After critical decisions by German and European courts the states’ legislators and gambling authorities will adopt a more European focus. One area of interest will be online casinos that are currently banned in Germany but may be subject to new gambling licences in the future. This leads to new opportunities not only for German and European gambling operators but also for their advertising partners.

Enforcement – The enforcement of the German gambling regulation will be further strengthened. The authorities will exchange information among each other and they will not only look into the core gambling regulation but also into tax and anti-money laundering issues. This will be a challenge for all gambling operators but it will also mean opportunities for those that know how to deal with the ever-changing regulatory environment.