Published on: January 10, 2025, 05:17h.
Last edited on: January 10, 2025, 05:17h.
A new year has begun, raising hopes for more states to approve iGaming. However, a gaming industry expert predicts that the approval process for online casinos will not be as rapid as seen with sports betting.
Richard Scheutz, CEO of American Bettors’ Voice (ABV), discussed the slower pace of approvals for internet casinos with Deutsche Bank analyst Carlo Santarelli. One reason for the delay is the concern over potential cannibalization of brick-and-mortar (B&M) casinos.
B&M opposition to iCasino has increased in light of Pennsylvania and Michigan legalizing the product, leading to more data on the impact of B&M cannibalization,” wrote Santarelli.
Currently, only seven states – Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia – permit online casinos, compared to 38 states and Washington, DC allowing some form of sports betting. Missouri will become the 39th state to permit sports betting this year.
Don’t Expect Major iGaming Expansion in 2025
In a recent report, Santarelli suggested that a significant increase in state-level iGaming approvals is unlikely this year.
The analyst identified Illinois, Indiana, Maine, Maryland, New York, and Ohio as potential candidates for related legislation, with Maryland and Ohio having the best chances of passage. While progress is expected, the absence of approvals in Illinois and New York, the largest states in the group, would still be disappointing.
Wyoming is also being considered for iGaming legalization, but as the smallest state, its approval may not have a significant impact on broader approvals.
Santarelli indicated that the investment community agrees with Scheutz’s view that B&M casinos pose challenges to iGaming, making broader approvals unlikely this year.
California, Texas Outlook
Scheutz and Santarelli also discussed the prospects of California and Texas legalizing sports betting. Scheutz previously correctly predicted the failure of a 2022 ballot initiative for sports betting in California, reinforcing the importance of tribal casino operators in the process.
“Mr. Schuetz believes that tribes will work out power balance issues, potentially leading to revenue-sharing agreements, while online sports betting operators will provide expertise and brand awareness,” Santarelli stated.
Regarding Texas, Scheutz suggested that progress on sports betting could support efforts to bring Las Vegas-style casino resorts to the state. While there are positive developments with Las Vegas Sands shareholder Dr. Miriam Adelson, Lt. Gov. Dan Patrick’s reluctance to support gaming expansion remains a hurdle for now.
For sportsbook operators, Texas is preferred over California due to the potential for a competitive market without mandatory tribal gaming accommodations.