The UK’s Sky, with 7 million digital households, is the world’s largest advanced interactive TV service. In addition to program information, shopping, banking and email, viewers can bet. Fixed odds sports betting has had a presence on the platform since launch, but April of this year saw the launch of a new type of betting: ‘fixed odds games’.
‘Fixed odds games’ is a category borne out of UK gaming law and incorporates games like slots, keno, dice and digitized horseracing. According to UK law, ‘gaming’ is only permitted on licensed premises, whereas ‘betting’ is not subject to such stringent limitations. Fixed odds games constitute betting as long as i) there is a bilateral risk taken by the punter and the house; (ii) the return must be clearly stated; and (c) UK tax of 15% on gross profits is paid in respect of such 'bets'. Confusingly, although games like roulette and craps might appear to fall within this definition they are classified as ‘gaming’ and cannot be offered on UK iTV.
There are currently three fixed odds games operators on UK iTV: SkyBet Vegas, Play Monte Carlo operated by BettingCorp, and Fancy A Flutter, a joint venture between Rank and NDS. BettingCorp, part of OpenTV (itself part of NYSE-listed Liberty Media) is an enthusiastic proponent of interactive TV betting and gambling. “Interactive television is an ideal medium for betting and, eventually, gaming,” says BettingCorp’s CEO Michael Lobel, referring to the impending legislative change in the UK which is expected to allow full gaming on iTV. BettingCorp developed one of the two betting platforms operating on Sky and they offer single account access across web and wireless platforms. Lobel continues “Television provides a trusted medium with a captive audience and a range of content to bet and gamble on. The technical barriers to entry are higher, but that limits the number of competitors and the amount you need to spend on marketing.”
All three operators are reported to be making profits from their services after only a few months of operation. The UK appears to be blazing a trail both with the roll out of technology and its legislative framework, but operators in other countries will surely be keeping an eye on this lucrative and growing market.
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