Sports betting stocks are booming. More and more operators are going public, investors are chasing billion-dollar revenues, but regulation and legal risks remain major challenges. A closer look at the opportunities, risks and key players in the market.

The Norwegian Ministry for Culture and Church Affairs has introduced strict new laws on gaming terminals operated by Norsk Tipping, the Norwegian state-owned gaming company. Under the rules, gaming machines will only be accessible to pre-registered users via prepaid cards. In 2007, the EFTA court and the Norwegian Supreme Court ruled that Norsk Tipping could continue to be the sole operator of gaming terminals in Norway, on grounds that it seeks to limit gambling opportunities.

Sports bodies have commissioned an academic risk assessment of the threat gambling poses to the integrity of their competitions. Football, cricket, tennis and both codes of rugby have linked up with the Central Council for Physical Recreation to engage researchers from the University of Salford's centre for the study of gambling. They will examine how betting markets might offer opportunities for corruption.