It’s the honest-to-goodness reality. As the legislative calendar unfurls, eager faces in the gambling community and legislative halls brim with optimism. Yet, it’s been a half-dozen years since the landmark Supreme Court decision that tossed out PASPA, and the landscape is not quite what many had hoped. As it stands, a mere seven US jurisdictions have embraced legal online casinos, a stark contrast to the thirty-one endorsing online sports betting, with forty locales giving the thumbs-up to legal betting in its totality.
And what about the 2024 legislative marathon? It’s shaping up to be a letdown for those betting on legalization. Not a single state appears on the cusp of greenlighting online betting, though there’s a flicker of life in legislative proposals within the committee rooms of states like Georgia, Minnesota, and Mississippi. But let’s not kid ourselves; the outlook for online gambling laws is growing bleaker with each passing moment.
The litany of reasons why legalizing online casinos is a Herculean task is long and complex. There’s the gnawing anxiety about addiction. The trepidation that virtual casinos will undercut their physical counterparts. The stance that state coffers aren’t exactly desperate for the cash injection—at least, not right now.
But might there be an overlooked motive, something lurking beyond the political theatre of state capitols?
The Battle for Market Share: Goliaths vs. Davids
Consider the overwhelming clout of industry giants like DraftKings and FanDuel, jointly clutching a whopping 80% of the market share in both online sports betting and casino platforms. For a mid-sized or regional player, this prompts a moment of introspection: ‘What’s my role in this narrative, or am I merely a spectator?’
Wynn Resorts CEO Craig Billings, representing the interests of these “mid-sized or regional players,” recently voiced his thoughts on LinkedIn, sparking a discussion. Billings pinpointed the obsession with total addressable market (TAM) and tax revenue as a “narrow focus”. Billings contends that it’s crucial for operators to look beyond TAM and consider their stake in the market share pie.
“With nearly a thousand commercial and tribal casinos dotting the American landscape,” Billings reflected, “how many can truly harness the touted perks of an ‘omnichannel’ strategy? Maybe a hundred? A hundred and fifty? It’s the heavyweight national gaming operators that stand a chance against the online juggernauts. But what about the rest?”
Could Unity Turn the Tide?
Even players like Caesars Entertainment, MGM, and Penn Entertainment have only managed to secure a measurable slice of the market, albeit not a dominant one. The arena also welcomes contenders like Bally’s, Bet365, SuperBook, and Tipico, along with various unbranded commercial and tribal casinos nationwide. These entities may not crave a lion’s share of the market, but having a foot in the door is essential for their playbook.
Glaser sheds light on the lackluster political backing nationwide: “Not every regional player is convinced they can join the fray,” he observes. “They’re grappling with the ‘how’ of participation, their fragmentation clouding the route to entry.”
But Glaser sees a silver bullet—unity. He argues that when land-based casinos within a state, be they tribal or commercial, band together, they could change the game. “Once they decide on a unified product offering, their collective clout could be instant,” he explains.
“They could share platforms, products, and profits. This glaring void in the market—this apprehension among regional and tribal casinos that they might be edged out—it’s not set in stone.”
Challenges Unions Pose in Online Casino Legislation
Delving into the intricacies of online casino legalization, Billings sheds light on some significant roadblocks that could arise. He emphasizes the pivotal influence of labor unions in shaping the future framework of online gaming within various states.
The stark contrast in employee numbers between thriving online casinos and their land-based counterparts cannot be overlooked. With a digital platform requiring significantly fewer staff, the inevitable result is a leaner workforce for those not leading the online gaming industry. As a consequence, labor unions are poised to mount a substantial resistance.
Advancing online gambling legislation seems to hang in the balance, pending the resolution—or at least, acknowledgment—of these fundamental challenges. Despite this, the discourse around online gaming is active in legislative circles across the nation, even when progress on the bills appears stagnant.
Billings laments the frequent confusion among lawmakers when discussing igaming, highlighting the importance of clear communication. At iGaming Next in New York on March 6, he revealed, “We start discussions about igaming and legislators think we’re referring to video games. I make it a point to use the term ‘internet casino’ to clarify. Without this clarity, you end up with policymakers who are out of the loop. And it’s imperative to lead discussions with a focus on consumer protections,” an approach that resonates with the insightful reviews found on Casino online.
Will Maryland and Maine Pave the Way for Igaming in 2024?
Iconic figures like Iden, the ex-Michigan representative who championed the legalization of legal sports betting and igaming in 2019, along with Shawn Fluharty from West Virginia, often spearhead these legislative discussions. Yet, even they express uncertainty about the traction online casinos might gain in 2024. Despite this, Maryland lawmakers are demonstrating commendable determination. Following amendments, a house subcommittee recently advanced an online gambling bill. The reworked HB 1319 sketches a landscape with 25 online gambling licenses while prohibiting credit card-funded accounts and amplifying diversity within the licensing framework.
Highlighting a unique approach to public awareness, a town hall meeting is slated for March 15 at Morgan State, offering a deep dive into the proposed legislations—marking a rare instance of a public igaming discussion outside a government venue in the U.S.
Maine, on the other hand, is actively contemplating legal online casino options. The state’s four tribes received the exclusive rights to online gambling in a comprehensive bill that Governor Janet Mills ratified in May 2022. The ongoing proposal suggests that these tribes would hold an exclusive right, similar to their sports betting setup, while the state’s physical casinos, owned by entities like Churchill Downs and Penn Entertainment, would be excluded from offering online gaming. The crucial legislation is with the Joint Standing Committee on Veterans and Legal Affairs, awaiting a hearing date.
The Untapped Revenue Potential of Online Casinos
As we stepped into 2024, there were whispers of optimism that a handful of states—including Illinois, Indiana, Maryland, New Hampshire, and New York—might embrace igaming. However, as we move two months into the legislative season, those hopes have largely dissipated. While Bally’s made a splash by launching its online casino platform in Rhode Island last week, over four years since its online sports betting debut, the broader celebration for igaming is subdued.
On paper, legal igaming appears to be a no-brainer. The tax benefits that states could harvest from online casinos dwarf those from sports betting. For instance, Connecticut’s online casino tax revenue stood at a robust $60.2 million in 2023, in stark contrast to $19.5 million from online sports betting, based on data from US Bets and Sports Handle.
Even more telling is the situation in Pennsylvania, the largest state with both legal online casino and sports betting, which accrued a whopping $490.4 million in casino gaming tax revenue in 2023, overshadowing the $155.9 million from sports wagering. West Virginia’s case is particularly striking, with digital casino tax revenue outpacing online sports betting by fivefold after both were legalized in 2018.
The impact of it being an election year could sway some decisions. While legalizing online casinos—or sports betting—may not be a high priority for voters, lawmakers tend to be receptive to their constituents’ desires, whether they come from individuals or corporate entities. Fluharty observed at the New York event, “There was a surge in legalizing sports betting, with an anticipation of a domino effect, which did occur in certain states. Ultimately, legislators are driven by re-election prospects. If they sense that their constituents are in favor of igaming, they are more likely to act accordingly.” This understanding of political dynamics is essential for those exploring online gambling opportunities, much like the insights provided by OnlinePlaytech, a resource for discerning gamers and legislators alike.