The year 2021 proves to be a dynamic time for the global economy, as Covid has thrown many businesses and industries into unfamiliar waters with uncertain futures.
However, the iGaming industry is going through a revival and is predicted to soar within the next few years, with new opportunities for business and entertainment easily visible on the horizon. With these opportunities, shockwaves are being sent throughout the US, as many more states are proposing new laws related to gambling in an attempt to move the stagnant legislation that currently prohibits many forms of gambling in the US.
Scott Manford CEO of Wizard Slots, one of the UK’s leading slots providers, has noted this as an extremely exciting time for gamblers in the United States.
“The current rate of expansion for regulated sports betting in the United States supports the idea that there is both an audience and a financial incentive for states when adopting the practice. Sportsbooks operate at much lower margins, and legislators are quickly catching onto the fact that taxable revenue from virtual casinos could dwarf that of the sports wagering markets.”
More than half the country has started legalizing betting
In May 2018, the US Supreme Court made a historic decision to legalize sports betting country-wide. Prior to that, the federal ban on sports betting meant that Americans bet an estimated $150 billion illegally every year, and the issue of unregulated gambling remains a hot topic.
New Jersey first brought the case to the Supreme Court after long years of advocating for sports betting legalization. Finally, the federal ban on sports betting was struck down after being ruled unconstitutional, allowing individual states to legalize and regulate their own bodies of sports betting services. Sportsbooks have been opening all over the country ever since.
This is a huge step for the United States entertainment industry, and as more states open legislative doors, brands across the world are showing greater interest in broadening their horizons and pushing into the American market, and British brands are already discussing strategies to enter the U.S. market.
“All major sportsbook operators have either partnered with or are heavily influenced by the large UK brands, as they offer years of experience and provide the extensive technology needed to run the business,” shared an Online Slots UK spokesperson.
“This reliance will be even greater when it comes to the world of online casinos. The European brands already house extensive game catalogs backed by the top software providers in the world, and their CRM models and rewards programs have been fine tuned.”
In a race to put the best product on the market first, it seems likely that the established gambling brands in the US will either look to partner with or acquire these existing operators.
Uphill Battle
While legislation would clearly offer financial benefits to states in the form of job creation and taxable revenue, virtual forms of casino gambling still faces a fair amount of opposition. Let’s look at some facts:
- Utah and Hawaii are the only states which currently have a total ban on all kinds of commercial gambling, online and land-based. Poker is allowed in private residences in Hawaii.
- There are 2 types of land-based casinos in the US: the Commercial Casinos and the Native Tribe Casinos.
- Commercial Casinos can be found in Nevada and Atlantic City.
- There are 524 Native Tribe Casinos across the country, found in 30 states. In most states, these casinos are not bound by federal regulations and have their own rules.
- Georgia, Hawaii, Kentucky, New Hampshire, South Carolina, Utah, Vermont, and Virginia do not have any land-based or tribal casinos.
- Delaware, California, Illinois, Indiana, Nevada, Iowa, New Hampshire, Pennsylvania, New Jersey, Rhode Island, and West Virginia have regulated internet gambling. In other states, players play at websites licensed by other countries.
- It is technically a crime to gamble online in Louisiana, Utah and Washington but no player has ever been convicted.
- The Unlawful Internet Gambling Enforcement Act (UIGEA) works on a federal level and blocks payments from banks to online betting businesses. This is somewhat contradictory with some states where online gambling is allowed.
Many have not warmed up to the thought of online casino-style gambling, but this opposition closely mimics the resistance that the sports betting advocacy faced a few short years ago.
One of the fastest-growing industries
iGaming is any activity that involves betting online, for example betting on a live event or a game outcome. In the modern day, this timeless activity is carried out through sports betting, online casino gambling and other skill-based games like poker or blackjack.
“Data states that there are close to 400 registered casino hotels in the United States, with an estimated value of $54.8 billion this year. The 465 registered non-hotel casinos reported a gross gaming revenue just over $43 billion in 2019. The interest is there,” added one online casino operator.
“The United States brought in $34.3 billion in total gross gaming revenue in 2009, meaning that the interest and cash flow has more nearly tripled in a ten year span.”
Many factors could be accounted for the growth of the iGaming industry. Technological advance means that the games are constantly evolving and improving. All kinds of betting services are offered with better visual and audio design which naturally attract more customers.
iGaming is a highly innovative industry that never sleeps, and the online casino sector is leading the way. Online slots are coming out every week and gather a massive public following. Meanwhile, classic games like roulette and blackjack maintain a steady base of players.
A total upturn of the system with Blockchain?
Blockchain would eliminate the facilitation of a central authority (an escrow service/third-party company that processes bets) when betting online. Instead, Blockchain allows for all the bets placed to be logged, stored and processed across a network of computers. It will create a transparent record that cannot be tampered with. This record can be checked and verified by all parties involved in the transaction.
The implications of this technology are immense, as it would bring a new level of trust and transparency to the way that gambling is carried out as well as the way the customer complaints are handled. Many think that Blockchain could be the main force that makes online casino gambling legal across all the states.
Cryptocurrency is also likely to become a valid form of payment when betting, if Blockchain enters the industry. This would open many more doors for cooperation and widening the reach of the iGaming industry.
A Future Worth Betting On?
iGaming industry is a promising niche that is predicted to undergo some changes. Good potential for business lies in the wake of these changes as citizens of the US look forward to more transparent and safe betting being made available.
Considering how massive, innovative and dynamic the iGaming industry is, it is bound to become more widely legal across the US. This is not a question of if, but a question of when: perhaps the key to legal and safe online casino gambling lies in technology like Blockchain.
Many Americans enjoy online casino games while some miss out on them due to current legislation. Regardless, the future of the iGaming industry seems bright as the gambling laws are being relaxed. Online casinos are expected to eventually follow suit of sportsbooks, as it appears that the dollar signs attached are just too tempting for legislators to pass on.
