iGaming Legalization Won’t Resemble Sports Betting, Says Expert
A new year has arrived, bringing hope that additional states will legalize iGaming, but one industry expert thinks the rate of these approvals will not mirror the previous trends observed with online sports betting.
In a recent discussion with Deutsche Bank analyst Carlo Santarelli, Richard Scheutz, who possesses over forty years of experience in the gaming industry, remarked that state approvals for internet casinos will not come as swiftly as those for sports betting. Scheutz, the CEO of American Bettors' Voice (ABV), cited potential cannibalization of physical (B&M) casinos as a reason why states are not hurrying to legalize iGaming.
"B&M opposition to iCasino, which was always present, has increased, in the aftermath of both Pennsylvania and Michigan legalizing the product, and thereby giving operators more data from which to support / frame an opinion on the magnitude of B&M cannibalization stemming from the product,” wrote Santarelli.
At present, only seven states — Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia — permit online casinos. That contrasts with 38 and Washington, DC that allow certain forms of sports betting. This year, Missouri becomes part of that group, bringing the total to 39.
Avoid Wagering on Significant iGaming Growth in 2025
In a report released earlier this week, Santarelli indicated that a surge of state-level approvals for iGaming is improbable this year.
The analyst identified Illinois, Indiana, Maine, Maryland, New York, and Ohio as potential states for related legislation, highlighting that the highest chances of approval are in Maryland and Ohio. The industry and investment sector would probably feel somewhat content with that result since it would indicate advancement; however, there would still be a degree of disappointment if neither Illinois nor New York — the two biggest states in that category — adopt internet casinos.
Wyoming is also a contender to approve iGaming this year, but being the smallest state in the nation, it would probably have minimal impact on larger approval trends.
Santarelli remarked that the investment sector is probably in agreement with Scheutz's perspective that terrestrial casinos pose challenges for iGaming and broader acceptance of this type of betting is unlikely to occur this year.
California, Texas Remarks
Scheutz and Santarelli also talked about the prospects of California and Texas becoming states that permit sports betting. A few years back, the CEO of ABV was one of the initial voices to highlight that the 2022 ballot initiative by commercial entities aimed at legalizing sports betting was doomed, and he was proven right as that measure was decisively turned down by voters.
“Mr. Schuetz is of the view that the tribes will work through balance of power issues, with the potential for a sharing of proceeds agreement, while the OSB operators primarily serve to provide brand equity and technological and operational expertise,” said Santarelli.
Regarding Texas, Scheutz informed the Deutsche Bank analyst that sports betting could gain traction this year if it helps in the initiative to establish Las Vegas-style casino resorts in the state. There are favorable conditions for that strategy thanks to the substantial financial resources of Las Vegas Sands (NYSE: LVS) shareholder Dr. Miriam Adelson, but it is uncertain whether Lt. Gov. Dan Patrick (R) will alter his stance on gaming expansion — a change that currently seems improbable.
For sportsbook operators, Texas would be the favorable choice compared to California, as it would enable a competitive market without compulsory provisions for tribal gaming organizations.
