While online casino gambling is only permissible in a minimal selection of states in the U.S., industry leaders see a digital transformation as inevitable, although the concern is that it could damage the business model of traditional casinos. This was the core of the debate at the SBC Summit North America, where top execs came together to deliberate on the pacey but gradual shift towards the legalization of online casino games.
Elizabeth Suever, Vice President at Bally’s Corporation, shared many people’s views when she stated that there is a generational shift towards digital integration in everyday life, which is especially typical for the millennial generation, who have a habit of managing their lives on mobile phones. This trend shows that we can expect online gaming to capture an even bigger share of the gambling market. Nevertheless, adaptation is a gradual process.
Currently, only seven states run online casinos legally: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. On the contrary, Nevada only gives one license to operate a poker website.
The popularity and accessibility of both sports betting and online casino games exist but in a different way. In the wake of the United States Supreme Court’s decision in 2018 that allowed sports betting mostly to be done online, only a few states have given way to the operations of legal i-gaming through mobile devices. This crude pace has also been observed by Shawn Fluharty, an official from West Virginia and the president of the National Council of Legislators from the Gaming States.
The industry is aware of the difficulties ahead. Brandt Iden, the Vice President at Fanatics Betting & Gaming, emphasized that digital gaming is the future of the industry, and consumer trends show that. Only a month ago, Deutsche Bank foresaw that online gambling in Atlantic City would outplay the revenue generated by conventional casinos.
Despite that, the journey that leads to the acceptance of all people of online gaming has not been entirely successful. Cesar Fernandez, an expert from FanDuel, stated that many problems must be dealt with before sports betting becomes a reality. The states are hesitant when it comes to the online gambling sector as a source of revenue, and this is especially true given that the funding from the pandemic is shrinking. It is noteworthy that the only company generating $3 is Fanduel alone. The government has generated $2 billion in taxes since 2018, indicating significant financial benefits if countries choose to regulate online gambling.
Nevertheless, the issue remains about the increasing danger of online gambling to develop people’s dependency and competition for money with physical casinos. Some industry insiders say that the application of gambling apps makes it possible to take a slot machine with you wherever you go, which may cause gambling addictions. Consequently, another extremely heated discourse is led on whether online gambling affects brick-and-mortar casinos. Rob Norton, president of Cordish Gaming, has pointed out that their in-casino wagering at the Maryland Live! has slipped significantly. Casino considering the meaning of online sports betting in the state.
Nonetheless, people like Adam Glass from Rush Street Interactive and Quincy Raven from NeoGames Group even speculate that this shift has no negative consequences on physical casinos. They argue that a competition will bring the edge and eliminate the tax effect on players. They also note that the growing shift to digital globalization could open new job opportunities in marketing and media.
As the industry tries to deal with these highly complicated issues, the future of online casino gambling has become a subject of intense discussion while gradual legislative adaptation is taking place, which plays the role of balancing innovation with tradition.
