Spectrum SIGHT White Paper Spectrum SIGHT White Paper June 2017 final | Page 3

 People are also hard-wired to enjoy social settings, and to seek entertainment
experiences with other adults.
With those precepts in mind, our initial theorem, as developed in 2002, made it clear
that online gaming in the United States should develop differently, not simply as a new revenue
stream, but as a marketing tool that would reach new demographics in a new way that would
increase both online and land-based revenue.
By primarily ensuring that land-based casinos are central to online gaming in the United
States, we examined the benefits that land-based operators bring to this issue:
 Well-known brands that are associated with an entertainment experience, as well
as with gaming integrity; i.e., players know intuitively that their games are honestly
run.
 Established player-loyalty programs that can be easily redeemed for entertainment
options, including free rooms, show tickets and dining experiences.
 Experience with the existing compliance process in land-based regulations, which
include transparency in reporting, as well as the development of detailed, effective
responsible-gaming procedures and programs.
In short, policies developed to implement online gaming in the United States need to
ensure that its land-based industry plays a leading role, as that is also an effective pathway to
ensuring optimal policy impacts.
Harnessing online gaming to land-based licensees will not only grow online and (as
noted) land-based revenue, but will also do more to increase employment, generate capital
investment and encourage other sources of revenue, such as sales taxes. After all, if online
gaming spurs more visits to a casino, that translates into a need for more dealers, food servers,
housekeepers and other positions. At the same time, more meals, drinks, show tickets and
room nights generates more sales tax and other revenue streams.
We recognize that there may be multiple pathways to an effective online policy, and
there are contrary views that need to be considered. For example, we sought the views of
Gideon Bierer, Managing Partner of Partis Solutions, a consulting firm with a long history in
online gaming. He noted the following cautionary note to help ensure that policies developed in
the United States are developed carefully, and are not protectionist:
Look at the United Kingdom for an alternative model. The open licensing model has created a far
larger market which has generated a significant amount of tax revenue and employment. By
embracing an open market, the UK is a global leader in iGaming with many high-wage, cutting-
edge jobs. If the UK had limited iGaming to the land operators, the market would be very
constrained by comparison. The land operators – sportsbooks, casinos and bingo halls alike -
have all thrived in an open market but are not dominant.
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Observing 15 Anniversary of SIGHT
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