While the sportsbook segment in the US keeps on flourishing and demonstrates dynamic improvements, the iGaming sector lacks proper regulation. In this article, Casino Market experts will tell you about the current situation’s reasons and the potential changes.
State of Local Internet Gambling
Almost half of the country’s provinces have legalised sports betting on the Web. However, the iGaming sphere mostly remains in the shadows as only 7 regions allow casino portals to operate on their territories.
Rhode Island became one of the last states that joined the list of regulated jurisdictions for digital gambling in the US and the only one which did that in 2023. It is expected that web slots and tabletops will be rolled out locally in April 2024.
Other provinces that legalised iGaming include:
- Michigan (MI);
- Delaware (DE);
- New Jersey (NJ);
- Connecticut (CT);
- Pennsylvania (PA);
- West Virginia (WV).
The absence of proper control over online entertainment impacts the American industry, making it lose significant benefits. For instance, the situation led to WynnBet’s roll-back at the end of this summer. The major operator had to cease activities in several regions and focus on Massachusetts and Nevada solely where it has ground establishments. That substantially affected the brand's plans and prospects for this and subsequent years.
While there is a tendency for positive changes, poor regulation restrains the possible progress.
Politicians are cautious about the following nuances:
- The launch of iGaming websites can lead to reducing revenue flows from ground casinos and impact job costs.
- The risk of widespread ludomania development as a result of more accessible gambling is another worry of lawmakers.
- Tribes demonstrate a rather negative attitude towards making digital amusement platforms legitimate.
- Internet casinos are not as popular and well-accepted among locals as sportsbook projects.
- The established operators of physical entertainment properties also show their discontent.
New York and Illinois have a great foundation and solid reasons to legalise iGaming. This year, both states saw some attempts to introduce regulation, which may be resumed in 2024. Additionally, one of the NYS senators announced they would present a corresponding bill during January’s congress session.
Profitability Prospects of US iGaming
L&W's Global Head of Government Affairs considers internet gambling the most successful offering in the country's entertainment history. In Howard Glaser's opinion, slow expansion cannot hide or minimise the great potential of the niche.
Prominent figures and brands support the development of the digital amusement sector. It can generate more profits than the bookmaker segment. There is a hope that when American authorities see the real numbers, the members will reconsider their attitude towards the niche and accept it more warmly.
Across 7 states with legalised online games, there were amazing financial gains:
- in Q3, the sphere grossed $ 1.52 billion;
- the figure is up 26% YoY and the best local result per quarter.
The sector saw an impressive evolution in Pennsylvania. In September, its revenue reached $ 159.5 million, a 41.5% increase. That broke the last record set in March — $ 148.2 million. Earnings generated by digital slots grew by 47.3% to $ 114.7 million while tabletops brought in $ 42.4 million, a 31.7% uplift.
In 2024, there will be a lot of work to do in terms of showcasing the advantages of legalised iGaming to politicians and related organisations. All their concerns must be covered to trigger serious changes in the industry. One of the most convincing factors should be the online segment’s ability to collect taxes, significant for the economy. This will allow for dealing with fiscal stress across many provinces.
Still, there were some positive shifts:
- Rhode Island became the first region to make real-money web gambling legal since the COVID-19 global epidemic.
- Michigan supported the introduction of regulation for digital amusement content even before the pandemic.
- Connecticut’s authorities approved and presented tribal-sponsored internet casinos.
Additionally, with a proper approach, uncovered pension liabilities that are seen in Mississippi’s and Kentucky’s communities may be handled by iGaming taxes in 2024.
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