Waterhouse VC, in his recent article, delved into the analysis of gambling monopolies and their operations in regulated markets. He compared the existence of monopolies in gambling to the pricing power of a sole café in a small town, emphasizing that monopolies have the advantage of offering exclusive products, trusted brands, and a strong relationship with the government and the industry. However, he also pointed out that this lack of competition and limited product offerings could lead to suboptimal outcomes for consumers. Waterhouse gave examples of how monopolies operate and their impact on regulated wagering markets.

One such example is Happy Valley, established in 1884 by the Hong Kong Jockey Club (HKJC). The HKJC holds a significant duty on its gross margin from football and racing, contributing billions to the community through government contributions and charitable donations.

Waterhouse VC also highlighted the role of B2B suppliers in providing critical and innovative services to wagering operators. Monopolies, like other operators, benefit significantly from technological advancements and innovative products. The integration of B2B products with monopolies presents significant opportunities for both parties.

However, unregulated operators pose a threat to monopolies. The leakage of wagering volumes to unregulated operators affects the overall income and competitiveness of monopolies. Waterhouse VC stressed that monopolies need to innovate and offer attractive product offerings and customer experiences to compete with the unregulated sector and retain customers.

In order to sustain and grow, monopolies need to fill the gaps in their product offerings and expand their operations internationally. Waterhouse VC suggested that granting monopoly licenses to cover product gaps could reduce leakage to unregulated operators, increase taxation, and protect bettors by providing higher levels of consumer protection in regulated markets.

Overall, Waterhouse VC emphasized the need for monopolies to adapt to the changing landscape and to consistently innovate to retain and attract customers. For investors interested in following industry news and trends, Waterhouse VC updates on Twitter or their website were recommended as reliable resources.

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