Spectrum SIGHT White Paper Spectrum SIGHT White Paper June 2017 final | Page 14

The core of our original theorem is that brick-and-mortar casinos will embrace the
Internet in the same way that, say, professional sports embraced broadcasting: as a new source
of revenue and as a principal means of generating new customers.
This follow-up has a different core: Different forms of gaming, with different
constituencies and differing levels of political support will identify new ways of using the
Internet in an effort to become major players in this emerging virtual world. If the current set of
nascent trends continues to evolve, state lotteries and pari-mutuel interests may find
themselves competing against brick-and-mortar casinos for places in this new competitive
dynamic.
Consider that many slot suppliers already license many of their best-known slot brands
to lotteries, and there is a massive crossover between slots and lotteries on third-party brands.
Where will the line ultimately be drawn? We cannot answer that question, in part
because the issue is evolving differently in different states. We can state, however, that the
concerns will prove particularly acute in states that offer – or intend to offer – both lottery and
casino gaming.
There are no assurances that such states understand the potential convergence, and
competition between these forms of wagering. But we feel confident that the casino industry
will continue to move along the SIGHT continuum. Whether all other stakeholders will
accommodate that inevitable evolution remains an open question that we will address in future
analyses that commemorate the anniversary of SIGHT.
th
Observing 15 Anniversary of SIGHT
14