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CASINO & GAMES
of the “ mid-sized or regional players ” has a similar take , which he shared on LinkedIn in March .
Billings wrote that the focus on online casino expansion has been centred on total addressable market ( TAM ) and taxes , which he called a “ narrow focus ”. There is , Billings argues , much at stake for individual operators , who must place more value on their own market share , not TAM .
“ There are almost 1,000 commercial and tribal casinos in the US ,” Billings wrote . “ How many of them can actually avail themselves of the often-touted benefits of an ‘ omnichannel ’ strategy ? 100 ? 150 ? The properties that might actually be able to compete with the digital native online gaming providers are those that are owned by the large national gaming operators . What about everyone else ?”
“ There are almost 1,000 commercial and tribal casinos in the US . How many of them can actually avail themselves of the often-touted benefits of an ‘ omnichannel ’ strategy ?”
Craig Billings , Wynn Resorts
UNITY COULD BE POWERFUL
Glaser ’ s suggestion is that “ everyone else ” should band together to create a juggernaut that can compete . As it stands , the tech companies – DraftKings , FanDuel and , increasingly , Fanatics Betting & Gaming – are dominating the online casino and sports betting spaces .
Caesars Entertainment , BetMGM and Penn Entertainment have measurable , but not competitive market share . Other companies , such as Bally ’ s , Bet365 , SuperBook and Tipico are also in the game , as are unbranded commercial and tribal casinos across the country . While those companies may not need massive market share to define their success , they do need skin in the game .
“ The reason we are not seeing strong political support across the country is that not all regional players think they can be involved ,” Glaser says . “ They need to figure out how to be in . Their fragmentation is the reason they don ’ t see an easy path to getting in .”
Glaser thinks that unity – among landbased casinos in a state , whether tribal or commercial – will be the ultimate key to passing online casino bills .
“ If they decide they want to have a uniform product , they would have instant power ,” Glaser explains .
“ They would share platform , product and revenue . That ’ s the obvious gaping hole in the market […] the fear that regional and tribal players have is that they are going to be frozen out of the marketplace . But that is not a forever situation .”
LABOUR UNIONS ARE ANOTHER CONCERN
Billings also offered some other potential potholes on the road to legalisation . He wrote that labour unions could play a critical role in defining the terms of what online casino looks like in any state . Successful online casino operations employ only a fraction of the number of employees that successful land-based casinos employ . And ultimately , those not at the top of the online gaming heap will thin out their ranks . Unions , in turn , will push back .
It seems unlikely that online gambling will gain much traction until the core issues outlined are , if not solved , at least addressed . But the issue is a topic in state houses across the country , whether or not bills are moving forward .
Fanatics Betting & Gaming head of government affairs Brandt Iden – author of the opening quote – says that the industry must also focus on education .
“ We go to talk about igaming and they think we are talking about video games ,” he said during an industry panel in New York back in March . “ I start with [ using the phrase ] ‘ internet casino ’. You have to call this what it is , otherwise you have lawmakers that don ’ t know what you ’ re talking about . And then you have to lead with consumer protections .”
22 • ISSUE 136 • iGB L ! VE 2024