It could be another 12-18 months before a new online casino state launches
$5,000 Welcome Bonus
In 2014, New Jersey was the first state to introduce a legal iGaming market. Since then, six other states including Pennsylvania, Michigan, West Virginia, Connecticut, Delaware, and Rhode Island have all opened up online casinos. Nearly 40 US jurisdictions have approved some form of legal sports betting. However, only seven states have a legal online sports betting market. Those numbers don’t add up.
On Monday, a panel of gaming industry stakeholders said a new online casino state launch could be stalled for 18 months or longer. Legal online sports betting markets have seen financial growth but there is little to no political momentum for regulated online casinos states. Lauren Sieler, founder of the Global Gaming Advisors, had this to say on Monday about new markets not being available.
“It’s just not coming to fruition. It’s an election year,” said Lauren Sieler, Founder of Global Gaming Advisors, during Monday’s Earnings+More: Capital Markets Forum. “Everything is going to die at the end of the year.”
What hurdles does iGaming continue to face?
States looking to potentially add online casinos are New York, Illinois, Iowa, Indiana, Wyoming, Colorado, Maryland, and Maine. They’ve all tried to get online sports betting markets legalized in the last year but have failed. Lauren Sieler noted that it could be another 12-18 months before any of these states see any political movement to allow online casinos. Seven states currently have regulated online casinos. Those seven account for nearly half of the revenue in the entire US-regulated sports betting market.
Gaming expansion in most states has faced massive hurdles to try and be legalized. In New York, the labor union has concerns about iGaming. Additionally, the licensing of downstate casinos in New York has delayed their ability to get a regulated online sports betting market. Politicians have argued that the expansion of iGaming will hurt brick-and-mortar casino workers. Many of them are represented by unions.
What does the future hold for online casinos?
It’s going to take some time for future online betting markets to open. That’s why gaming stakeholders are working to improve their existing markets. Caesars Digitial President Eric Hession noted that they’ve seen improvements in technology implementation, payment processing, customer adoption, and marketing techniques. Online slots have continued to thrive even while iGaming hasn’t grown nationally.
