Indian Country Online
By Roger Gros
One of the sources of incremental revenue for commercial casino companies has been online gaming . In New Jersey , the struggling Atlantic City casinos were thrown a lifeline with iGaming . Revenue has steadily risen and has helped bolster the bottom lines of those once-struggling casinos . The total monthly gross gaming revenue in New Jersey for online gaming alone is about $ 35 million , which , if it were a separate casino , would make it the second-highest-grossing casino in the city .
And sports betting is doing its part as well . Just six months into its legalization , New Jersey is taking more than 70 percent of its revenue from mobile betting .
Despite the fact that online betting and mobile wagering are abundant , Atlantic City casinos are also attracting new customers to their brick-and-mortar facilities by offering points and comps via their online rewards club that can only be redeemed inside the casino property .
The question of how tribal government gaming can benefit from online gaming and sports betting is complicated .
Since the vast majority of tribal casinos are located on relatively remote reservations , usually a long drive for customers , tribal leaders are reluctant to give them a choice of playing from a mobile device or a computer . Even though a tribal casino could conceivably derive revenue from iGaming , it is more important to be able to bring that customer to the actual casino . Because usually it ’ s more than just one person , and usually they do more than just gamble . So I understand that reasoning . On the other hand , there are more and more opportunities for people to play online — legally or illegally .
Sports betting is spreading like wildfire across the country . At this time , there are eight states where sports betting is legal and almost 20 where there is legislation to make it so . But in states where tribal gaming is pretty much the only game in town , tribes are shutting down the train . Even when legislation would limit sports betting to tribal facilities .
Now as I said , I understand the reasoning in requiring a customer to visit your somewhat remote tribal casino to gamble , but if sports betting is limited to the tribes , why not incorporate it ? Especially if you can add mobile sports betting to your list of offerings . I also understand that there are concerns about tribal sovereignty , and while I don ’ t discount the importance of that issue , there are some ways around it — ways to establish a sports betting business outside of the reservation . Not being an attorney , I wouldn ’ t venture a suggestion about how that could be accomplished , but I know some brilliant tribal lawyers who could get the job done .
The Choctaws in Mississippi have found a way . Yes , I know that they already operate in competition with commercial casinos and must introduce sports betting just to keep pace , but they were able to get over the sovereignty issue , as well as the off-reservation questions . And I ’ m sure they ’ ve got a mobile solution in their plans once that becomes legal in the state .
And the Santa Ana tribe in New Mexico has proactively installed sports betting at its Santa Ana Star casino , determining that they have the right under their compact with the state . That ’ s still to be determined , but sports betting there continues .
But let ’ s talk about the overall picture , and how tribal gaming is almost completely discounting interactive gambling — at its own peril , I believe .
You can ’ t bury your head in the sand and pretend that it isn ’ t happening . Because it is . And without any participation or negotiation from the tribal side , it could be a serious mistake .
We ’ ve all got these devices called cellphones or tablets that rule our lives these days . You can ’ t book a plane ticket , check into a hotel room or make a restaurant reservation without one . And they keep getting more and more sophisticated . There ’ s an app for everything , including lots for gambling .
Tribes that are ignoring this coming technology tsunami are fooling themselves . Yes , you need to balance the issues of in-person gambling and entertainment , along with the sovereignty issues , but iGaming and mobile sports betting are coming . Tribes need to be prepared .
Yes , getting tribes on the same page is very difficult — almost impossible . So maybe tribal members have to think for themselves and decide what is best for their individual tribes .
Let ’ s end this column with one word : Blockbuster . Used to be one on every corner , but now they ’ ve disappeared from the landscape because the owners didn ’ t believe Netflix would work . Who ever heard of mailing a DVD to customers ? But that was just the start for Netflix and new technology . Let ’ s not let tribal gaming become the Blockbuster of the 21st century .
TRIBAL Government Gaming 2019
Roger Gros , Publisher | rgros @ ggbmagazine . com twitter : @ GlobalGamingBiz
Frank Legato , Editor | flegato @ ggbmagazine . com twitter : @ FranklySpeakn
Marjorie Preston , Managing Editor mpreston @ ggbmagazine . com
Monica Cooley , Art Director | mcooley @ ggbmagazine . com
Lauren Byrge , Director , Sales & Marketing LaurenB @ GGBmagazine . com
Floyd Sembler , Business Development Manager fsembler @ ggbmagazine . com
Becky Kingman-Gros , Chief Operating Officer bkingros @ ggbmagazine . com
Lisa Johnson , Communications Advisor lisa @ lisajohnsoncommunications . com twitter : @ LisaJohnsonPR
Columnists Jonodev Chaudhuri | Carl Long Kate Spilde | Ernie Stevens Jr .
Contributing Editors Dave Bontempo | Pam Jones Dave Palermo | Patrick Roberts
EDITORIAL ADVISORY BOARD Rino Armeni , President , Armeni Enterprises
• Mark A . Birtha , Senior Vice President & General Manager , Hard Rock International
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Julie Brinkerhoff-Jacobs , President , Lifescapes International
• Nicholas Casiello Jr ., Shareholder , Fox Rothschild
• Jeffrey Compton , Publisher , CDC E-Reports twitter : @ CDCNewswire
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Dean Macomber , President , Macomber International , Inc .
• Stephen Martino , Vice President & Chief Compliance Officer , MGM Resorts International , twitter : @ stephenmartino
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Jim Rafferty , President , Rafferty & Associates
• Thomas Reilly , Vice President Systems Sales , Scientific Games
• Steven M . Rittvo , Chairman Emeritus , The Innovation Group twitter : @ InnovGrp
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Katherine Spilde , Executive Director , Sycuan Gaming Institute , San Diego State University , twitter : @ kspilde
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Ernie Stevens , Jr ., Chairman , National Indian Gaming Association twitter : @ NIGA1985
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Roy Student , President , Applied Management Strategies
• David D . Waddell , Partner Regulatory Management Counselors PC
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6 TRIBAL GOVERNMENT GAMING 2019