Market Round Up: Betting USA & Government Outsourcing
1. Betting U.S.A.
Last May the U.S. Supreme Court legalised sports betting. It did not take long for betting experts to jockey in to the market and carve up a slice of what is certain to become a massive industry. Unsurprisingly, it has been a British high street bookmaker that has made the mark.
GVC owned Ladbrokes is forming a joint venture with casino operator MGM Resorts. Ladbrokes will be bringing its long sports and online betting experience, which it garnered in the liberal gambling fields of UK and Europe, to MGM’s casinos and hotel resort properties across the U.S.
It will be interesting to see if other bookies, such as Paddy Power, William Hill and Playtech, will also make the crossing.
2. UK Outsourcing. Un-loved and un-sexy
Outsourcing has never grabbed the headlines in the same way as, say, tech companies. And certain sectors of outsourcing, especially government outsourcing, have never had good publicity. But perhaps this unloved sector deserves better attention.
In the UK outsourcing has been de-rigour for past and present governments. Unfortunately, many of the deals done have been deservedly ridiculed by the public for their perceived poor returns and zero accountability. Take a look at Capita and Carillion, the go-to outsource companies for every government department. One went bust, the other is undergoing a massive shake-up in order to survive. As the Capita CEO, Jonathan Lewis, declared. “For the first time, Capita is running a business rather than (just) handling a collection of contracts”. That, pretty much sums up the cash-cow view of state outsourcing. But at least now it has some hope, and therefore worth closer investment scrutiny because, after all, they have a guaranteed order book.
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