The Impact of Monopolies in Regulated Wagering Markets

Monopolies, like the lone cafe in a small town, wield substantial pricing power in regulated wagering markets. They offer exclusive products, boast trusted brands, and maintain strong ties with both the government and the industry. However, the absence of competition and limited product variety can sometimes leave consumers with less than ideal choices.

Examples of these monopolies include the Hong Kong Jockey Club (HKJC), a historic institution founded in 1884. Through regulatory changes, HKJC expanded its scope to off-course betting, contributing billions back to the community in the form of taxes and charity donations.

B2B suppliers providing critical services to wagering operators find significant opportunities in collaborating with monopolies. Technological advancements and innovative product offerings are keys to their success. By adopting modern technology and expanding their product range, monopolies can extend their influence beyond their home markets, echoing global strategies employed by industry leaders like Flutter Entertainment.

Monopolies face challenges from unregulated operators, especially in the digital age. These illicit bookmakers operate with lower tax burdens, posing a threat to regulated markets. Taxation revenue leakage is prevalent, leading to losses in gaming revenue and tax revenue for governments.

Monopolies cannot rely solely on their privileged position. To remain competitive, they must deliver compelling products and customer experiences. Introducing monopoly licenses covering product gaps can reduce leakage to unregulated operators while increasing tax contributions and charitable donations. This approach safeguards bettors and maximizes the potential of monopolies, both domestically and internationally.