A U.S. Supreme Court decision to overturn the federal government ban on sports betting would trigger expansion of all forms of online gaming in Asia, industry experts say. Opinions differ on how fast U.S. legalization might alter Asia’s gaming landscape and whether online revenue will be in the tens or hundreds of billions of dollars, but there’s no doubt legal sports betting in the U.S. will change the game.

“This decision is going to have ramifications around the world,” David Leppo, CEO of FootballBet.com and BetMex.net, says. “If sports betting in the U.S. is legalized, others will fall in line.”

The U.S. high court is due to rule by July in the case of Christie v NCAA, centering on the 1992 Professional and Amateur Sports Protection Act (PASPA), a federal law that limits legal sports betting to Nevada and, in restricted forms, three other states. f the court overturns PASPA, as many observers expect, U.S. states would be free to legalize sports betting, and it’s likely many would do so.

“Illegal gambling is happening in all shapes and forms all around the United States, and it’s not regulated or taxed,” Global Market Advisors Partner John English says. English was a partner in American Wagering Inc, developer of the first secure smartphone app for sports bets approved for use in Nevada in 2010. English estimates smartphone apps now handle 70% of Nevada sports betting, a $4.9 billion market last year. But that’s just the tip of the iceberg.

The American Gaming Association says $150 billion is wagered illegally on sports in the U.S. alone, with billions more on casino games, according to English. “This is dangerous to the consumer, yet it continues to happen,” he says. “It would be in everyone’s best interest to regulate and tax online gaming instead of letting the money flow out of the country or to illegal gaming operators.”

Legalized sports betting, mostly done online, will almost inevitably lead to legalization of other forms of online gambling, which some U.S. jurisdictions are already exploring. Know Your Customer provisions and other safeguards developed for sports betting to prevent money laundering and combat problem gambling would be applicable to any form of online play. Tax revenue would also prove tempting.

“In Asia, the biggest reaction will be with banking,” Leppo says. Payment issues present a particular problem in Asia with its plethora of currencies. U.S. dollars remain favored for cross border transactions but require clearance through U.S. banks. Current restrictions on U.S. financial institutions effectively blacklist gambling payments from all but legal U.S. casinos, driving much of Asia’s online gaming payments into the shadows. U.S. legalization will force banks and global credit card companies to loosen restrictions on gaming payments domestically, triggering “a domino effect,” Leppo says. “It will be easier for people to open accounts and for banks to clear payments because there won’t be so many restrictions from the U.S.”

Asian jurisdictions will either join the U.S. liberalization, or see their top players lured to the U.S. to enjoy legal online play with legitimate money movements, according to Leppo, a pioneer in bringing Las Vegas style racing and sports betting to Latin American and Asian markets. He sees the U.S. legalization process playing out over two-to-four years following a favorable Supreme Court decision and Asia countries following suit over the next decade.

Online mobile betting, widely enjoyed in Europe, could come out of the shadows in Asia as a result of U.S. legalization. (Photo credit: Chris Ratcliffe/Bloomberg)

“Many countries are doing studies, even China has tested an online sports lottery,” English notes, The Philippines has separate online platforms that cater to domestic and overseas players, he adds. Asia can also look to Europe as a model of online gaming evolving in a region of multiple jurisdictions.

“Given the cultural environment in Asia, this may be a slower process than it was in Europe,” social casino platform PlayStudios Managing Director John Lin says. “Until there is a larger critical mass of regulated markets, most of the sophisticated top-tier operators will likely stay on the sidelines.”

Founded in 2011 and now with development hubs in Hong Kong, the U.S. and Tel Aviv, PlayStudios has 1.6 million daily users globally for its casino table and slot machine games that offer points redeemable for gaming-linked rewards, such as stays at casino resorts. “We don’t expect any impact to PlayStudios’ strategies from these [online betting] developments,” Lin, once a development executive for Las Vegas Sands, says. “We are a social gaming company, full stop. There’s so much growth and opportunity in social; the social casino sector has grown revenue at more than a 28% CAGR over the last 5 years, and the innovation among our apps and our competitors continues to evolve at a furious pace.”

If real money online gaming comes out of the shadows in Asia, that pace will accelerate extraordinarily.

https://www.forbes.com/sites/muhammadcohen/2018/03/22/bet-on-u-s-supreme-court-sports-wagering-verdict-to-change-the-game-in-asia/#4571bb81a825