According to Scientific Games Global Head of Government Affairs and Legislative Counsel Howard Glaser, most of the time that states embrace or consider new business opportunities, success is not guaranteed.
But reluctance to adopt igaming can be rebutted with undeniable financial success. According to Glaser, the per-capita numbers for igaming revenue in the last month — $182 in Michigan, $120 in Pennsylvania, $88 in Michigan — indicate there’s opportunity, with little risk.
“There’s no debate about igaming,” Glaser said during “Igaming: Is the Opportunity Real? What’s the Long-term Outlook?,” a panel discussion during the opening of day of the Global Gaming Expo at the Venetian Expo in Las Vegas. “The model has proven to be a smashing success.”
Sports betting gets all the flash and sizzle via national ad campaigns, with celebrities and athletes serving as brand ambassadors. But according to Foxwoods Resorts Casino Vice President of Brand Marketing & Digital Anika Howard, “Igaming is absolutely the revenue leader and that’s in any of the regulated markets so far. We see sports betting as it adds the experience on the property, and also as a driver or funnel for a lot of the online gaming play.”
Connecticut is the latest state to legalize igaming — it also sanctioned sports betting — in September. That makes six states where bettors can play casino games online, compared to the 27 states and the District of Columbia where sports betting is legal.
Howard said it was important that when Connecticut legalized igaming, everything, from player outreach to the technology, was in place and running smoothly. One issue was especially important to get right.
“We did a statewide marketing campaign to make sure that a lot of the responsible-gaming issues were addressed in collaboration with the legislation and that we were ready to get ahead of that,” Howard said. “Then the last piece is that regulation actually requires funding for responsible gaming for operators that are licensed in the market.”
Howard added that the state of Connecticut’s regulations regarding igaming and responsible gaming were very specific about what was expected. According to Glaser, it behooves gaming operators to have thorough responsible gaming programs in place, lest legislatures enact their own sets of rules.
“I’ve seen this movie many times,” Glaser said. “If you don’t act to regulate yourself as an industry, regulation will be imposed on you and it will not be pretty.”
But igaming is likely to be profitable. Moderator David Berman, managing director for Macquarie Capital, asked if the end result was going to be national gaming operators owning the space, or a series of regional casinos thriving.
Glaser predicted that a significant number, though not all, of the 44 states that haven’t legalized igaming will be on board within the next 5 to 10 years, and that revenue would annually reach $25 billion, with a tax base of $2.5 billion to $4 billion returning to states. He added that responsible gaming will become increasingly important and that offshore illegal unregulated gaming must be addressed.
But igaming, he feels, is inevitable. “It makes no sense not to take an industry in a state, in a business you are already highly committed to, and not to turn it on,” Glaser said.
“The winners are going to be the organizations that not only focus on that customer relationship. … They’re going to take all those things that really have value and be able to integrate that to create a compelling player experience. So I think it’s anyone’s game right now, because it’s so early on and there’s so much movement,” Glaser said.
