Pinnacle withdrew its license application to UK Gambling Commission and shifted its focus on bringing sportsbook solutions to the US market.
The company has been expecting to acquire a UKGC license last year to legally return and operate on the UK market. Because of the long wait, however, Pinnacle sees more opportunities on the US market, especially now that sports betting may finally be legalized in some states.
Why Pinnacle Pulled Out License Application
Pinnacle had undergone changes in ownership, following the sale of its majority stake holdings. Under the guidance of new owners, the company forms a strategic vision to expand Pinnacle’s services to players within Europe’s regulated markets.
Acquirement of a Malta MGA2 license in 2015 was the first step to Pinnacle’s goal. The license allows the sportsbook operator to provide sports betting services across qualified jurisdictions within Europe. After successfully securing a Maltese license, Pinnacle announced its application plans for a UKGC license targeted in 2017.
Upon recently, the company’s license application was still pending. Neither UKGC nor Pinnacle provided any reasons or cause for the delay. Pinnacle determined that the company will pursue its return to the UK market in the future.
An official tweet from Pinnacle said:
“Although we are eager to serve the UK betting market, the decision has been made that now is not the right time. We appreciate that this will leave some of you disappointed but please rest assured that Pinnacle remains committed to bringing its low margins, high limits and unique winners welcome policy to the UK market when the time is right”
| Related: Pinnacle Exits Australia for Lack of License
Is US Sports Betting Market More Valuable?
The company unveiled last week its latest B2B sportsbook platform technology division called Pinnacle Solution. The platform provides an iFrame API and turnkey solution that aims to increase operators’ profit potential.
Paris Smith, CEO of Pinnacle, said:
“After 20 successful years in the gaming industry, the launch of our B2B platform is the start of another exciting chapter in the history of Pinnacle. We’re known for risk management and eSports, and now others in the industry can benefit from our expertise.”
With Pinnacle Solution, the company aims to gain a strong foothold on the US market. Pinnacle and other sportsbook companies await the US Supreme Court’s decision to repeal the Professional and Amateur Sports Protections Act 1992 (PASPA) in New Jersey. Nullifying the act will legalize sports betting in New Jersey and will open the door for other states to follow.
The US market was important for Pinnacle because the country’s punters make up about 60 percent of the company’s revenue. Pinnacle had previously exited the US market without citing any reasons. Many suspected that its departure was due to the government, which had threatened Pinnacle to a forced closure or sting. With the repealing of PASPA in New Jersey and other states, Pinnacle can offer sportsbook solutions once more to American punters.