1. The gaming industry, and those who have a vested interest in it, such as public officials, tend to favor the status quo.
2. Internet gaming is replete with regulatory and licensing concerns, some of which can be easily addressed, but some will require answers to questions that have not even been asked yet.
The first phenomenon deserves recognition as an essential part of this process. In the gaming world, there are few coincidences. For example, it is no coincidence that Nevada – a state that is more dependent on wagering than any other – has no lottery. Proposals for a Nevada lottery have failed thus far, in part because of opposition from the gaming industry. On April 24, 2009, the New York Times analyzed a proposal for a Nevada lottery that went nowhere:
Lori Nelson, a spokeswoman for Station Casinos, which owns 18 casinos geared to Nevada residents, asked,‘ Why would you want to have the state compete against its largest industry?’ And Rob Stillwell of Boyd Gaming, owner of seven Las Vegas properties, said lotteries, which‘ can operate as kiosks’ with relatively few employees, had an unfair advantage over casinos, which have the expense of infrastructure, amenities and a substantial payroll. 8
This embrace of the known and the rejection of the unknown is arguably non-productive but is clearly understandable. More important, it can be skirted once it becomes clear that the rationale for rejecting the unknown is based on flawed assumptions.
In this case, the core assumption – that Internet gaming is a threat to land-based wagering – has ultimately proven to be flawed, in part because it fails to recognize a principal reason why adults visit casinos: socialization. Television may have cut into live attendance at movie theaters, but hardly ended it. Similarly, while a few professional sports fans might prefer big-screen viewing to sitting in a stadium, attendance continues to do well.
Similarly, it is no coincidence that nations such as Great Britain, which were early adopters of online wagering, do not have what has been termed“ Las Vegas-style” casino resorts, and has hitherto rejected them. As Gideon Bierer points out:
Internet adoption is not a gambling-specific phenomenon, and gambling customers are on their mobiles, whether you like it or not. Casinos can ignore that fact or embrace it as an opportunity. Nine times out of 10, it’ s better to focus on going to where your customers are, rather than trying to get them to change their habits and come to you. Look at the music industry, newspapers, bookstores.
Look forward not back, as a business’ value is based on projections of future profits, not past profits. 9
8
Steve Priess,“ A Nevada Lottery? The Line Forms in California,” New York Times, April 24, 2009, http:// www. nytimes. com / 2009 / 04 / 25 / us / 25nevada. html
9
Bierer.
Observing 15 th Anniversary of SIGHT 8