Bodog announced this week that they will be pulling out of the U.S. market at the end of 2011. Their decision comes as a surprise to the United States, and probably to many in the industry. It sounds like a counter productive decision, but apparently its not.
The reasoning behind the strategic decision by Bodog is that Bodog is looking to grow and expand its brand and reputation. To do that however, they want to have a smooth road ahead of them, without any stop signs or red lights to hinder them.
Enter the U.S. Unfortunately, the United States is divided when it comes to online gambling, and anti gambling issues are a big glaring STOP sign to Bodog. As such, it’s actually a proactive move to make on Bodog’s part to ensure a smooth road for their growth. Also, Bodog is concerned of the negative association affecting their brand and reputation.
Bodog has established markets in the United Kingdom, as well as Asia and other places. With a stake in emerging markets, Bodog does not want to jeopardize their position by remaining associated with the United States.
With the ongoing online gambling issues in the United States, its actually not that bad of an idea to pull out of the market, especially if there’s room to grow elsewhere. There are still a few months left before the end of the year. Maybe things will change in the United States. For now though, we’ll just have to wait and see.