The Changing Legislations of US Gaming – Who’s winning?
Insight | Published 21st September 2018
Europe has always led the way with online gaming and gambling. We’ve seen companies grow and change the world of online gaming. With the development of changing legislations in the US, what does that mean for the gambling communities, the global corporations and the agencies that partner with them?
Traditionally in the US, gambling culture has had higher restrictions placed on it – naturally – as they’re built on physical locations like Atlantic City or Las Vegas. But in recent years the big US players, who have traditionally invested in resorts, have been looking externally at the growth of the European online gaming culture and the disruptive force it brings to the existing geographic model. But it’s not all doom and gloom. US companies are now starting to explore the opportunity to continue customer engagement beyond the walls of the casino or the limits of the resort city model.
Companies have, for the past few years, been working with a ‘Play for Fun’ business model but this has been more of a marketing ploy, or an appetite wetter, instead of an opportunity for future business generation.
We have also seen a rise in fantasy sport gaming which has begun to generate mass business – we’re talking in the billions – where the profits weren’t going to the large corporations nor being regulated/taxed by the federal government. An interesting environment for development, we’re sure you’ll agree.
So… On to The Good News™.
Recent changes to the legal environment in the US have opened the sport betting market to the online arena. This is, in turn, allowing established European companies, such as Ladbrokes, Paddy Power Betfair and Playtech from European shores to partner with US companies. Essentially, accelerating accessing to this, previously untapped, market.
American operators have, unsurprisingly, been fast to act. This is seen with Scientific Games’ recent purchase of the gaming group NYX. They anticipated the Supreme Court’s judgement and made the purchase in advance of any rulings to be in the best place when the American market becomes accessible.
We are now looking at a period of huge growth, with some predictions showing more than double the growth for online since 2009. Current forecasts suggest that the online gaming industry will be bringing in $52.96 billion by 2019. If we compare that to land-based casino revenue in the US from 2015 at $71.1 billion, we can see we’re dealing with a sleeping giant. The sector is still in its infancy in the US, but with massive potential upsides. The cautious approach is still there somewhat, but we can’t say anything other than it’s a great time to be involved in the US online gaming industry.
It is the prime time to invest in the US market. Show and event attendance in this space is at an all-time high, so come and speak to us about how you can engage a new tranche of American customers.