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Fact-checked by Stoyan Todorov
Analysts Caution US Online Casino Legalization Won’t Happen at Breakneck Pace
Since 2018, the United States has seen almost 40 states legalize their sports betting industries, ushering an unprecedented expansion of the sector
However, professional analysts have cautioned that iGaming is tougher to sell to the public and legislators, cautioning pragmatism and for people to adjust their expectations when it comes to online casinos.
iGaming Legalization Won’t Happen at the Same Pace as Betting
Deutsche Bank analysts Richard Scheutz and Carlo Santarelli have argued that internet casinos will be much slower going for most states, with a few already looking to change the status quo, and in places such as Virginia.
Another core opposition stems from land-based properties which have been loath to divvy up the market with online casinos which they see as their natural enemies and an encroacher on what is historically their stomping ground.
Most physical venues are worried about something logical – cannibalization. The availability of online casinos would make many players fail to attend physical events as frequently, causing a slump in their revenue and ability to generate profit or employment.
Presently, there are only seven iGaming states, meaning states that offer online casinos, giving ample fields for comparison, including:
- Connecticut
- Delaware
- Michigan
- New Jersey
- Pennsylvania
- Rhode Island
- West Virginia
Proponents of online gaming have argued time and again that online casinos would not in fact cannibalize revenue, but then again, online sports betting, for example, generates nearly 100% of the total betting handle.
As to what states may be coming next in terms of legalization options – Virginia is clearly in the lead, although the analysts also mention Illinois, Indiana, Maine, Maryland, New York, and Ohio. Wyoming could be another potential state that will see its online casino vertical legalized this year as well.
Wyoming has already passed sports betting laws, and it has even approved crypto betting, making it a peculiar outlier. Apart from the land-based factor that acts as a deterrent to legalization, there are other considerations.
Online Casinos Generally Face Strong Opposition
Tribal casinos play a powerful role in places such as California, and the legalization of online casino gambling could only happen if these powerful organizations give their explicit approval. This approval could very well be tied with a sort of exclusivity over the sector, which is what happened in Florida with the Hard Rock Bet brand.
In places such as Texas, for example, land-based casinos are still under question, and if the state ever decides to expand gambling it will focus heavily on land-based gambling. The Deutsche Bank analysts tend to agree with this as well.
However, if sports betting gains traction, it could help with the plans to have Las Vegas-style resorts in the Lone Star state. The opposite also seems to be the case – should land-based resorts arrive first – they may galvanize legislators into introducing sports gambling.
Chances are that both Texas and California are tough markets to track, but once gambling expands, Texas may actually be more liberal in the way it legalizes the industry, compared to California where the tribes are likely to take the hot seat, the analysts caution.
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Although Fiona doesn't have a long-spanning background within the gambling industry, she is an incredibly skilled journalist who has built a strong interest in the constantly growing iGaming network. The team at Gambling News is glad to have her on our roster to help deliver the best stories as soon as they hit. Aside from writing, she loves to dabble in online casino games such as slots and roulette, both for her own enjoyment and also as research to better improve her understanding of the industry.
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