Florida lawmakers gathered at a special conference to discuss the possibility of expanding iGaming in the state, as part of a broader gaming compact with the Seminole Tribe. The conference, hosted by the National Council of Legislators from Gaming States (NCLGS), featured experts and stakeholders from various sectors of the gaming industry, who shared their views and insights on the benefits and challenges of iGaming.
What is iGaming and why is it important?
iGaming, or online gaming, refers to the activity of playing casino games, poker, bingo, sports betting, and other forms of gambling over the internet. iGaming is a fast-growing and lucrative segment of the global gaming market, which is expected to reach $158 billion by 2028, according to a report by Grand View Research.
iGaming offers several advantages for both operators and consumers, such as convenience, accessibility, innovation, personalization, and data analytics. iGaming also has the potential to generate significant tax revenue for states, as well as create jobs and economic opportunities for local communities.
However, iGaming also poses some challenges and risks, such as regulatory uncertainty, technical complexity, cybersecurity, responsible gaming, and social impact. iGaming requires a robust and flexible legal framework, as well as effective oversight and enforcement mechanisms, to ensure fair and safe operations, protect consumers, and prevent fraud and money laundering.
What is the status of iGaming in Florida and the US?
Currently, iGaming is legal and regulated in six states in the US: New Jersey, Pennsylvania, Michigan, Connecticut, Delaware, and West Virginia. These states have seen impressive growth and performance in their iGaming markets, generating billions of dollars in revenue and taxes, as well as attracting new and diverse customers.
Florida, however, does not have any form of iGaming, except for online poker, which is offered by the Seminole Tribe under its existing gaming compact with the state. The tribe operates six casinos in Florida, and has exclusive rights to offer certain games, such as blackjack, baccarat, and slot machines, in exchange for sharing a portion of its revenue with the state.
In April 2021, Florida Governor Ron DeSantis and the Seminole Tribe reached a new gaming compact, which would allow the tribe to offer online sports betting and fantasy sports, as well as expand its land-based gaming offerings, in return for paying the state $2.5 billion over the first five years, and a minimum of $6 billion by 2030. The compact also included a provision that would allow the tribe to offer online casino games, such as slots and table games, if the state authorizes them for any other entity.
However, the compact has faced several legal and political hurdles, as it requires the approval of the US Department of the Interior, which oversees tribal gaming, as well as the Florida Legislature, which has to pass a bill to implement the compact. The compact has also been challenged by various groups and interests, such as pari-mutuel operators, anti-gambling advocates, and constitutional lawyers, who argue that it violates federal and state laws, as well as the rights of voters and taxpayers.
What are the main points of discussion at the conference?
The conference, which took place on December 15-16, 2021, at the Seminole Hard Rock Hotel & Casino in Hollywood, Florida, aimed to provide a platform for lawmakers and stakeholders to exchange information and perspectives on iGaming, and to explore the opportunities and challenges of expanding it in Florida and the US.
The conference featured several panels and presentations, covering topics such as:
- The economic and social impact of iGaming, including its contribution to state revenue, job creation, tourism, and innovation, as well as its potential costs and harms, such as problem gambling, addiction, and crime.
- The legal and regulatory framework of iGaming, including the federal and state laws and regulations that govern iGaming, the role and authority of tribal gaming, the jurisdiction and cooperation of different agencies and entities, and the best practices and standards for iGaming regulation and oversight.
- The technical and operational aspects of iGaming, including the infrastructure and technology that enable iGaming, the security and reliability of iGaming systems and platforms, the data and analytics that inform iGaming decisions and strategies, and the innovation and differentiation that drive iGaming products and services.
- The consumer and market trends of iGaming, including the preferences and behaviors of iGaming customers, the demographics and segments of iGaming audiences, the competition and collaboration among iGaming operators and providers, and the opportunities and challenges for iGaming growth and development.
The conference also featured keynote speeches from prominent figures in the gaming industry, such as Jim Allen, the chairman and CEO of Seminole Gaming and Hard Rock International, who highlighted the tribe’s vision and commitment to iGaming, and Howard Glaser, the head of government affairs for Light & Wonder, who shared his insights and predictions on the future of iGaming in the US.
What are the main takeaways and implications of the conference?
The conference was a valuable and timely event that brought together lawmakers and stakeholders from different backgrounds and perspectives, and facilitated a constructive and informative dialogue on iGaming. The conference also demonstrated the interest and potential of iGaming in Florida and the US, as well as the complexity and uncertainty of iGaming expansion.
Some of the main takeaways and implications of the conference are:
- iGaming is a significant and growing segment of the gaming industry, and offers many benefits and opportunities for states, operators, and consumers, as well as some challenges and risks that need to be addressed and managed.
- iGaming requires a comprehensive and balanced approach, that considers the economic, social, legal, regulatory, technical, operational, consumer, and market aspects of iGaming, and that involves the collaboration and coordination of various stakeholders, such as state and federal governments, tribal gaming, pari-mutuel operators, online gaming providers, and advocacy groups.
- iGaming is not a one-size-fits-all solution, and needs to be tailored and adapted to the specific needs and circumstances of each state and jurisdiction, taking into account the existing gaming landscape, the preferences and expectations of the voters and taxpayers, and the goals and objectives of the policymakers and regulators.
- iGaming is an evolving and dynamic phenomenon, and needs to be monitored and evaluated on a regular basis, using data and evidence, to ensure its effectiveness and sustainability, and to identify and respond to emerging trends and issues.
The conference also set the stage for further discussion and action on iGaming, as Florida lawmakers are expected to resume their special session on the gaming compact in January 2022, and as other states are considering or pursuing iGaming legislation or regulation in 2022 and beyond.