Gambling in the USA

What We Can Learn From the US States That Have Legalized iGaming

Published

2 years ago

July 20, 2022

For many, gambling is an emotive subject. Some people love it. The anticipation, the thrill, and what-ifs that form while waiting for the result. However, some people and communities object to gambling on moral grounds; these could be related to religion, morals, or traditions. The USA has always had a strange relationship with gambling ranging from total prohibition to Las Vegas marketing itself as the world’s gambling capital. Ever since the Supreme Court overturned the 1992 Professional and Amateur Sports Protection Act that had served as a blanket prohibition on state-sponsored sports betting, state after state has opened up to legalized gambling. Before the ban was lifted, it was estimated that Americans wagered $150 billion illegally every year.

That $150 billion figure illustrates that banning something does not make it go away; it simply drives it underground. While some states like Utah and Hawaii will never legalize gambling, many others are looking at the trailblazer states like New Jersey or overseas to Europe and seeing that regulated gambling can bring significant revenue to state coffers.

The state of New Jersey pushed for the change to the law, and New Jersey immediately passed laws that allowed Monmouth Park to begin to take sports bets. The state had licensed legalized online casinos and poker rooms in 2013, and by August 2018, the first online sports books in the state were opened.

We can learn from New Jersey alone that gambling is big business. In September 2018, the state handled $1.01 billion in wagers. The lion’s share of this came from igaming at nine casinos and three racetracks. In addition, according to the New Jersey Division of Gaming Enforcement, $92.7 million was spent online.

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What really matters to the states that have legalized online gambling is the revenue it generates for private operators and their shareholders and the taxes levied for the state. For example, the latest figures from the New Jersey Division of Gaming Enforcement are as follows:

“For the month of June, Internet Gaming Win reported by casinos and their partners was $133.1 million, reflecting growth of 24.4% compared to $107.1 million for the prior period. For the year-to-date period, Internet Gaming Win reported by casinos and their partners was $814.5 million, reflecting growth of 28.4% compared to $634.2 million for the prior year-to-date period.

Sports Wagering Gross Revenue: Sports Wagering Gross Revenue reported by casinos, racetracks, and their partners was $39.2 million for June 2022, reflecting a 44.9% decrease when compared to $71.3 million in the prior period. Sports Wagering Gross Revenue reported by casinos, racetracks, and their partners was $308.7 million for the year-to-date, reflecting a 16.2% decline when compared to $368.3 million for the prior period. ”

UK companies had highly developed gaming software and technology. The best NJ online casino was able to integrate the existing games onto its platform to get it up and running quickly. The European operators had been working in legalized markets for years. So rather than try and reinvent the wheel, states that have legalized iGaming have imported the technology and business acumen from businesses that already knew what they were doing.

This model was followed up by all the states who went on to legalize iGaming. There are now 21 states where sports betting is legal. In Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia, residents can play online casino games, including table games like blackjack and roulette and a wide variety of online slots. The technology behind these games comes from European brands. They already have an extensive portfolio of games backed up by the top software providers in the world. They also have developed the best algorithms to spot potential gamblers and prevent gambling harms where possible.

There is constant innovation in this market. Companies are constantly bringing out new slot games to ensure that there is something for players to enjoy. In addition to the enhanced graphics and animations which make exciting virtual gaming online possible, gamblers can now play games with a live dealer without leaving the comfort of their own homes.

While the US might have been behind the UK and other countries in legalizing online gambling, the US land-based casinos are now looking to buy up the European pioneers. MGM has recently agreed to purchase Stockholm-headquartered online slots company LeoVegas.

The states that have legalized iGaming are finding that they are not only gaining revenues through taxation but are attracting tourists’ money too. Americans no longer have to go exclusively to Las Vegas to be able to enjoy a flutter. To gamble legally, a player must be physically present in their gambling state. They do not have to be permanent residents. This means that sports fans can enjoy a gamble on the game’s outcome. As well as the revenue from the gambling tax, a state like Pennsylvania can also benefit from hotel revenues from people attending the game or placing a bet from their holiday accommodation.

The most significant barrier to entry for operators is the high cost of doing business in a state like Pennsylvania. The tax rate in the state is effectively 36%, and operators have to pay an upfront $10 million licensing fee. As more states open up, will they need to start competing against each other?

Related Topics:Gambling Legalized iGaming US States

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Gambling in the USA

Zula Casino Kicks Off its Spectacular 1-Year “Zula-versary” with a Month of Events and Promotions

Published

1 week ago

October 2, 2024

Niji Narayan

Zula Casino launched its online social casino in the US exactly a year ago delivering more. More games. More rewards. More free-to-play entertainment through a personalized experience. Zula Casino marked its one-year launch by crossing the 1000 casino-game threshold – a milestone that positions it among the top platforms nationwide.

The month-long birthday bash intends to go over the top to give back to its amazing player community that helped make this first year so incredible. With its advent calendar format, players can unlock a special surprise each day ranging from a “Win-a-Vacation” event, a carnival event, free spins and new exclusive games, and a prize pool of over 25 billion Gold Coins (GC) plus 150,000 Sweeps Coins (SC) to be given out throughout the month. Over this period, Zula Casino will run other special events, including surprise happy hours with special coupons, various social media contests, and special giveaways.

“We’re incredibly proud of the player experience we’ve built over the last 12 months. The platform has garnered a substantial and loyal pool of players, and it’s not just because we offer one of the largest game selections from leading global providers, but also the exclusive experiences we’re providing, and the platform’s continued evolution with enhanced promotions, personalization, and seamless user experience,” said Tamar Laypan, Program Manager of Zula Casino.

Zula Casino has added over 1000 games across all categories over the past 12 months, including slots, jackpots, fish, table, plinko, megaways, crash, hold and win, tumble games, and more. These additions include top games like Big Bass Vegas and Fire Stampede, as well as branded exclusives like Gold Gold Gold 5000, supplied by Booming Games, and Sweet Bonanza 1000 by Pragmatic Play. With recent additions, Zula Casino now boasts 25 game providers, including Relax Gaming, Habanero, Evoplay, Pragmatic Play, RubyPlay, Gamzix, Let Us Entertain You Inc., to name a few.

Zula Casino flourished in a tough and highly competitive market, launching its proprietary-integrated platform in September of last year. With an average TrustPilot score of 4.6 and almost 9K reviews, the online social casino is among the highest-rated free-to-play sites in the market.

Zula Casino was also previously shortlisted for the prestigious Global SBC Awards in the category of “Rising Star in Casino”.

Gambling in the USA

NCPG Welcomes Diana Goode to the Board of Directors

Published

1 week ago

October 2, 2024

Niji Narayan

NCPG has announced the appointment of Diana Goode to the National Council on Problem Gambling’s Board of Directors. Diana, who has served as the Executive Director of the Connecticut Council on Problem Gambling (CCPG) since May 2018, brings over 25 years of nonprofit leadership experience to this role.

In her time with CCPG, Diana has championed initiatives that address problem gambling and promote responsible gaming across Connecticut. Additionally, she has played an active role on the NCPG Affiliates Committee, contributing valuable insights from her years of experience.

Before joining CCPG, Diana held executive roles in nonprofits focusing on poverty alleviation and financial literacy in Connecticut. Her academic credentials include a degree from Dartmouth College and an MBA in Finance and Marketing from the University of Connecticut. She resides in the Greater Hartford area, where she remains deeply engaged in her community.

Diana will serve an interim appointment in the Affiliates seat on the NCPG Board of Directors until Spring 2025.

Gambling in the USA

Gaming Executives Positive on Current Business Conditions, Cautious on Future Growth Expectations

Published

1 week ago

October 1, 2024

Peter Tolan

Overall Balance Sheet Health, Access to Credit Continue to Improve

In the face of slowing revenue expansion, gaming industry leaders continue to hold an overall positive view of the current business situation, with a notable improvement in credit conditions, according to the latest American Gaming Association (AGA) Gaming Industry Outlook.

The majority of respondents (88%) view the current state of the gaming industry as either good or satisfactory. Meanwhile, executives have a more conservative outlook on future business conditions, with respondents split on whether they expect conditions to improve over the next three-to-six months (3% net positive) and many expecting a decrease in customer activity (28% net negative).

“After years of very strong consumer gaming spending growth, expectations around customer activity over the next three to six months have cooled considerably,” said AGA Vice President of Research David Forman. “Still, gaming businesses remain well positioned, with executives touting strong balance sheets and more viewing access to credit as easy than restrictive for the first time in two years.”

Gaming Executive Panel

Since Q1, gaming executives’ sentiment has shifted, with a greater number of respondents now expecting a decline in customer activity over the next three to six months (28% net negative, up from 4% net negative in Q1). Despite this, panelists foresee improvements in overall balance sheet health (34% net positive).

Additionally, more executives reported access to credit as easy (19%) rather than restrictive (3%) for the first time in two years, and fewer cite interest rates as a major limiting factor than in the spring.

Hotel (56%) and food and beverage facilities (56%) continue to be the main and growing focus of capital investment among operators, followed by live entertainment (28%) and casino floor slots (22%).

Meanwhile, gaming equipment suppliers now believe their pace of capital investment and game sales will decelerate (13% net negative).

These expectations are impacted by evolving macroeconomic challenges, with uncertainty of the economic environment vaulting to the top of executive concerns (56%, up from 34% in Q1), followed by state regulatory concerns (31%), and inflationary or interest rate concerns and geopolitical risk (both 34%).

The Current Conditions Index

The Current Conditions Index for Q3 2024 was 97.3, which is consistent with real annualized contraction of 2.7 percent. The Current Conditions Index measures real economic activity in the industry, as measured by gaming revenue, employment and employee wages and salaries.

The Future Conditions Index

The Future Conditions Index, a leading indicator of changes in industry conditions, measured 98.9 in Q3. This indicates an environment in which real economic activity in the gaming sector, after controlling for underlying inflation, is expected to moderately decrease over the next six months (1.1% annualized rate).