As Italy takes a stricter stance against gambling, local operators are going to have to migrate to new territories in order to keep the money flowing. Newgioco Group, Inc. is the latest to consider its next move and the gambling company is said to be considering an exploratory venture into the Wild West of sports gambling – the U.S.
Newgioco covers gambling activity in both the B2B and B2C realms. It has been comfortably working in Italy, but the shakeup of the industry in its backyard is forcing it to consider additional options. With interest in sports gambling growing exponentially in the U.S., the market appears to be ripe for new operators.
Newgioco is now looking for new partners in legal sports gambling states with whom it can work to increase its footprint. It already works with the Chippewa Cree Tribe out of Montana, which is expected to incorporate the company’s ELYS sports gambling platform at its Northern Winz Casino in the near future. That partnership will give Newgioco a springboard to launch into additional regulated states as sports gambling continues to spread across the U.S.
Thanks to the Chippewa giving it a foot in the door, Newgioco is going to be able to participate in competitive tenders in the U.S. to help it continue to expand. Additionally, the company is going to develop a gambling app prototype for the U.S. markets that will be demonstrated through its partnership with the Montana-based tribe.
While expansion into the U.S. is seen as vital for the company’s growth, Newgioco isn’t giving up on Italy, either. It is working on plans to expand its domestic operations and is in the process of exploring “tactical acquisitions” that will help it achieve its goals. The company already has a local distribution network of more than 2,010 locations in Italy and will be negotiating new ways to enhance its B2B and B2C operations in the country.
Newgioco VP of Operations Alessandro Marcelli asserts, “The stability and popularity of our ELYS sports betting platform is enabling rapid organic growth throughout Italy. Overall, we expect continued growth in our retail footprint, and anticipate generating 25-30% growth in handle for the full year as locations stabilize following the conversion to the Newgioco platform and as the soccer season commences during the second half of this year.”