Paddy Power takes steps to enter US online gambling market

Paddy Power is a well-respected Internet gaming provider in Europe, and the Ireland based company is making their play to enter the US market when it opens up. This week, Paddy Power applied for a license in Nevada that would allow the company to manufacture and operate mobile gaming devices.

Nevada regulators have been told by lawmakers that they should begin preparing for the possibility of online gambling becoming a reality within the next couple of years. Several proposals are on the table in Washington that could completely change the face of online gambling in the US in the future.

Representative Barney Frank has been the strongest proponent of overturning the 2006 Unlawful Internet Gambling Enforcement Act, but as of yet Frank has not succeeded. This year, many additional lawmakers have supported the idea of regulated online poker after the Department of Justice shut down two of the biggest online sites in the world, PokerStars and Full Tilt Poker.

Legislators in Nevada have been searching for ways to make their gaming industry relevant again. Customers left during the economic recession, and casino expansion in other states has made it difficult for Nevada to get their customer base back. The Macau gaming industry has taken all the Asian gamblers, leaving Nevada to look for new clientele.

Paddy Power, meanwhile, has already made their intentions known. The company is seeking to gain a license in Nevada in order to be in position to service the online gambling market, should it become regulated in the future.

"The method of allying for the manufacturer and distributors license has been used in the past by people who want to pass probity to then allow them to consider a broad number of options," said Paddy Power CEO Breon Corcoran.

This is not the first time that a foreign company is attempting to gain a license in Nevada. Earlier this year, 888 Holdings passed a regulatory committee hearing in their effort to partner with Caesars Entertainment. It has been the trend over the past year that foreign companies partner with US-based gaming companies that already have licenses in the country.

Analysts believe that once online gambling is regulated on a federal level, it will be the existing land-based casino companies that will have the first shot at the new Internet gaming licenses. By partnering with the foreign groups, US companies gain access to a platform that already hosts online gambling sites in other countries around the world.