Regulatory Divergence: US vs. European Models

The sports betting industry operates under two divergent regulatory frameworks. The **European Model**, historically anchored by the UK Gambling Act of 2005 and offshore hubs like Malta, prioritized open licensing and cross-border liquidity. This fostered low-margin innovation like **Betting Exchanges**. However, Europe is now shifting toward **Point of Consumption (POC)** taxation and strict advertising bans (e.g., Italy, Netherlands) to curb addiction. Conversely, the **US Model**, born from the 2018 repeal of **PASPA**, is defined by **Federalist Fragmentation**. The **Wire Act (1961)** forces operators to ring-fence servers and liquidity within state lines, making peer-to-peer exchanges economically unviable. Furthermore, the US system relies on **"Skins"** (tethering online licenses to physical casinos) and mandates **Official League Data** usage, driving up operating costs. To offset these costs, US operators aggressively market high-margin **Same Game Parlays (SGPs)** rather than the low-margin straight bets favored in mature European markets.