Slow Pace of iGaming Legalization
In the world of online gambling, iGaming is gaining steam, but not at the same rapid pace as sports betting. According to industry expert Richard Scheutz, the approval process for internet casinos is not mirroring the lightning-fast trajectory of sports wagering legalization across states.
Brick-and-Mortar Casino Opposition
One key factor hindering the widespread approval of iGaming is the resistance from traditional brick-and-mortar (B&M) casinos. As states like Pennsylvania and Michigan have given the green light to online casinos, B&M establishments are concerned about potential cannibalization of their revenue streams. This fear has escalated, causing states to tread cautiously when considering iGaming legislation.
State-by-State Comparison
Currently, only seven states permit online casinos, compared to 38 states and Washington, DC that have embraced sports betting. Missouri is set to join the sports betting group this year, further widening the gap between the two forms of gambling.
In a recent report, Deutsche Bank analyst Carlo Santarelli highlighted that significant expansion of iGaming is unlikely in 2025. States like Illinois, Indiana, Maine, Maryland, New York, and Ohio are potential candidates for legalizing online casinos, but the roadblocks posed by B&M casinos may impede progress.
California and Texas on the Horizon
The conversation between Scheutz and Santarelli also shed light on the prospects of California and Texas entering the sports betting arena. While California’s path to sports wagering seems intertwined with tribal casino operators, Texas could potentially see a surge in sports betting if it aligns with efforts to introduce Las Vegas-style casino resorts.
Despite the potential benefits of sports betting in Texas, Lt. Gov. Dan Patrick’s stance on gaming expansion remains a significant obstacle. The preference for a competitive market in Texas, unburdened by tribal gaming obligations, makes it an appealing destination for sportsbook operators.
In conclusion, the contrast between iGaming and sports betting legalization reflects the complex landscape of the gambling industry. As states navigate the intricate web of regulatory challenges and stakeholder interests, the future of online gambling remains uncertain but full of promise.
