Online casino gambling may be fully legal in only a handful of states, but many industry experts see a bright future for digital wagering, especially as smartphones dominate how people engage with technology.
While there are concerns that online growth could hurt brick-and-mortar casinos, executives at the SBC Summit North America on Wednesday pointed out the obstacles they’ve faced in getting online casino games legalized.
Elizabeth Suever, vice president of Bally’s Corporation, remarked: “Once you get to millennials, people are comfortable basically running their entire life off their cell phone. This is where gaming is going.”
Currently, only seven U.S. states allow legalized online casino gaming: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island and West Virginia. Nevada allows online poker but not online casino gaming.
However, when it comes to sports betting, 38 states offer full legal sports betting online, with the vast majority of wagers placed via mobile devices.
Following the repeal of PASPA (the Professional and Amateur Sports Protection Act) in 2018, which allowed states to offer sports betting, online sports wagering “took off like a rocket” according to West Virginia legislator Shawn Fluharty.
However, Fluharty noted that the same rapid growth hasn’t been seen with online casino gaming, saying, “Many people thought i-gaming would follow suit. That has not taken place.”
Just last month, Deutsche Bank released a report predicting it is only a matter of time before revenue from online casinos surpasses that of physical casinos in Atlantic City.
Experts acknowledged that the gambling industry needs to help educate lawmakers about online casino gambling, highlighting the differences between state-licensed casinos and unregulated offshore betting sites that are drawing in lots of American bettors.
Legal state-run sites provide protections such as responsible gambling tools such as time-outs, and deposit limits which are not always available at illegal offshore operations.
Cesar Fernandez, a director at FanDuel, pointed out the financial benefits of online gambling for states.
“Since 2018, FanDuel has paid $3.2 billion in taxes. That’s a lot of teacher salaries, a lot of police officers and firefighters,” he said.
Gambling Addiction Fears
Some experts worry about how easy it is to gamble online. With cell phones, it’s almost like having a slot machine in your pocket, and that raises concerns about addiction.
In 2023, online gambling revenue was $6.17 billion, up 22.9% on the year before thanks to increasingly relaxed regulations. But this is set to explode further as more states legalize it.
Panelists at the recent SBC Summit said gambling companies need to do more, like adding deposit limits or giving players the option to take time-outs, and that these tools should be front and center.
There’s also the question of whether online gambling hurts physical casinos. But plenty of people in the industry say they actually work well together, bringing in different kinds of players.
Rob Norton of Cordish Gaming raised concerns about the impact of online gambling on physical casinos, citing revenue losses and declining visitor numbers. However, others, like Quincy Raven from Aristocrat Leisure Limited, highlighted the industry’s potential to create jobs and drive innovation in fields like game design and marketing.
As the industry continues to evolve, many experts agree that online gambling and traditional casinos don’t have to be at odds. Instead, both can find their place in a growing and increasingly digital marketplace.