If there’s a gambling regulatory issue in the United States in the future, the odds are on a new company being involved in identifying the matter. Two of the most prominent companies in the realm of regulatory compliance are about to become that dominant player.
Odds On Compliance and US Integrity have announced a merger. Assuming the transaction closes, the new joint company could touch most of the gaming transactions that occur in the US.
Odds On Compliance, US Integrity move to consolidate operations
This move isn’t completely surprising. Earlier this year, the two companies collaborated to create the Prohibet system. That system enables sports governing bodies to monitor personnel’s gaming activities for potential issues.
The Big 12 Conference was one of the first adopters of Prohibet, among other notable sports entertainment entities. Most of US Integrity’s customers are sports governing bodies or sportsbook operators.
Recent additions to US Integrity’s client roster have included:
US Integrity provides services like monitoring for suspicious gambling activity for these clients. Additionally, they offer an Athlete Alert tipline for customers.
Odds On Compliance’s services are not only for sports betting, however. That company’s clients include real-money online casino operators who trust Odds On Compliance to monitor their activity for various regulatory matters. For example, Odds On Compliance provides anti-money laundering auditing.
It’s unclear right now what the new joint venture will name the company or how soon the merger will be complete. What is more certain is that if it does, the new company will have a heavy hand in compliance services in the US.
Regulatory compliance merger could signal bigger things ahead
Both of these entities are quite young, with US Integrity’s founding happening in 2018 and Odds On Compliance forming in 2021. As is usually the case with lifespans of such length, both have few investors.
That small contingent of investors should help with closing this transaction quickly. A press release from both companies says that US Integrity CEO Matt Holt will retain that title in the new company.
With the combined company’s reach, the small contingent of investors may grow. The result might be a snowball effect, which allows it to expand its footprint in the US gambling industry even further.
The biggest unknown is whether this proposed merger appears on the radars of other compliance officials in the US, like the Securities and Exchange Commission. Scrutiny from that organization could delay the transaction.
Most online casino players are unaware of the compliance and integrity monitoring that their activity undergoes. Should this merger happen, a large percentage of that activity in the US will be monitored by one company.