This new series will prepare you for 2024’s biggest show with the most recent developments from 2023.
This year, we have heard a lot of stories about online betting in the US. Online sportsbooks are now available in almost half of the US states.
Igaming has not yet reached the same level of regulation.
Rhode Island is the only US state that will legalise online gaming in 2023. It was the only state in the US that had done this.
Rhode Island will now be able to offer online table and slot games in April 2024, after the Governor signed the bill in just a few hours back in June.
Rhode Island joins New Jersey, Delaware West Virginia Pennsylvania Michigan and Connecticut in being the only state to legalise igaming.
Lack of legislation in the US online gambling scene is a major problem. In August WynnBet closed its offices in several states.
The only operations that are certain to continue, in Nevada and Massachusetts, where WynnBet has land-based businesses, is the Nevada operation. The company has used this to shape its outlook in the coming year.
Igaming’s financial strength
Howard Glaser, Light & Wonder’s head of global government affairs and president for the Americas, called igaming “the most successful product” in US gambling.
It’s not hard to understand why so many big names still support it. This segment generally brings in more money than sports betting. As the figures become more clear, it is likely that states will begin to try to catch up.
In Q3, igaming generated $1.52bn dollars in revenue in the US, even though only seven states will be regulated before the year 2023. It’s a record-breaking quarter and a 26% increase year-on-year.
The igaming sector in Pennsylvania reported the largest growth rate during September. Revenues jumped by 41.5%, to $159.5m. This is a record high for Pennsylvania, surpassing its previous record set in March of $148.2m.
The revenue from internet slots increased by 31.7%, to $42.4m.
The lack of regulation in igaming is a continuing obstacle
The limited regulations continue to hinder progress, despite the positive signs. The legislators are worried about the potential for cannibalisation and loss of jobs that could result from online casinos. It is a concern that increased accessibility of gambling could lead to greater addiction.
Online casino has less acceptance by the public than sports gambling. It is also important to consider the opposition from land-based casinos.
Illinois had been viewed as one of several states that could fall under the igaming domino in 2023. While this has not yet happened, it is possible the bill for an online casino will be reviewed next year.
New York will also discuss this topic at the beginning of 2024, after Senator Joseph Addabbo Jr revealed his plans to present a bill in a legislative session that begins in January.
The financial benefits of online gaming must be highlighted
The industry will be responsible for educating lawmakers about the advantages of igaming and addressing their concerns in 2024. Igaming could be a key player to help states deal with fiscal strains in the future, due to its ability to generate more tax revenue than sports betting.
Tax contributions are more important than sports bets when approaching legislators about igaming. Igaming is a good solution for specific fiscal areas.
Rhode Island is the first state since the Pandemic to have legalised commercial igaming. Connecticut launched a tribe-sponsored online gambling site, and Michigan had already approved igaming before the pandemic.
If igaming revenue is targeted specifically, it could be a solution to the unfunded pension liabilities that exist in Kentucky and Mississippi.
