Barry Diller, a prominent figure in media and technology, has shifted his focus to the casino industry at the age of 84. His company, People Inc, formerly known as IAC, has proposed acquiring the majority stake in MGM Resorts that it does not already own. This acquisition values MGM at over $18 billion, occurring shortly after hospitality tycoon Tilman Fertitta's agreement to purchase Caesars Entertainment for approximately $17.6 billion.
While neither transaction has been finalized, the timing is notable amid significant investments in artificial intelligence. This influx of capital is enhancing the speed, personalization, and scalability of gambling products, even as land-based casinos are often seen as outdated.
Diller believes MGM represents a tangible asset that AI cannot easily replicate or replace. The gambling industry is influenced not only by consumer choice but also by regulations, which dictate where gambling can occur, the types of products available, and the level of friction for customers.
Land-based casinos retain valuable assets: permission, physical locations, and a human presence. Projects like MGM’s integrated resort in Osaka, expected to launch around 2030, exemplify how governments utilize limited gaming licenses to boost tourism and hospitality.
The predicted death of traditional betting shops and bookmakers due to online competition has not transpired. New models such as crypto casinos and prediction markets have emerged in response to regulatory gaps. Demand often shifts to the provider that offers the best mix of accessibility, experience, and regulatory approval.
Land-based casinos continue to possess those essential attributes. They have the permission, physical presence, and staff that online businesses struggle to replicate. However, what they lack is the speed and interactive capabilities of online platforms, presenting a ripe opportunity for innovation.
Historically, casinos have functioned as the primary access point for gamblers. Licensing and physical venues controlled this access, whereas online platforms can reach any smartphone user, allowing them to analyze play, customize offers, and engage customers in real time. Online games can be developed quickly and rolled out to multiple operators, with some, like SPRIBE’s Aviator game, processing vast volumes of bets per minute.
In Europe, online gambling revenue reached €47.9 billion in 2024, comprising 39% of total gambling revenue, with the casino sector generating €21.5 billion, significantly surpassing its land-based counterpart. U.S. iGaming experienced a 27.6% growth in 2025, reaching $10.74 billion, while traditional casino gaming grew by only 2.3%.
Online platforms continually offer dynamic features, showcasing live odds, promotions, and game histories, allowing operators to enhance customer engagement during gameplay.
Land-based casinos are limited by their geographical and regulatory constraints. Online gambling exists only in regions where permissible, with only eight states in the U.S. currently allowing it. Since the launch of regulated online gambling in New Jersey in November 2013, only seven states have functional online casinos, despite generating over $10 billion in revenue in 2025. The American Gaming Association estimates illegal gambling generates $53.9 billion annually and results in $15.3 billion in lost tax revenue.
Beyond permission, physical location is crucial. A license ties a business to a specific site that must be visible, taxable, and subject to local scrutiny. Casinos not only create jobs but also attract tourists, particularly as countries like Japan and the UAE integrate gambling licenses with larger resort projects.
The social atmosphere inherent in casinos is another irreplaceable asset. A lively venue filled with hosts, patrons, and the energy of winning cannot be matched by online platforms.
Innovation within the gaming industry varies, with many focusing solely on the machines themselves. Few resorts consider the overall experience offered by their properties. This is critical since a small number of manufacturers dominate the market, limiting broader innovation on the gaming floor.
Manufacturers benefit by increasing the value of their machines rather than enhancing the overall experience. Operators, on the contrary, focus on hospitality and customer loyalty but often lack the infrastructure needed to innovate on the casino floor. As a result, they tend to rely on traditional marketing tactics rather than enhancing gameplay dynamics.
Recognizing the online threat, operators like MGM, Caesars, and Boyd have launched online casinos. However, these platforms tend to diminish the control operators have over customer interactions and revenue.
The true opportunity lies in integrating technology that drives foot traffic into physical venues and enhances the gaming experience once customers are present. This does not necessitate changing the core of the gaming machines but rather improving the surrounding environment with digital engagement, competitions, and rewards.
Waterhouse VC has taken a stake in Slot Check, a company focused on enhancing this experience by providing real-time performance metrics and facilitating social play and competitions at physical locations without modifying existing gaming hardware. By adding digital layers around physical experiences, Waterhouse VC aims to help regulated operators maintain competitiveness in a rapidly evolving gaming landscape while capitalizing on the inherent advantages of land-based casinos.
