Internet gambling, also known as i-gaming, is gaining popularity and momentum in the US as more states are looking into legalizing it. With Rhode Island becoming the seventh state to offer online casino games this week, experts predict that New York, Maryland, and possibly California will follow suit in the near future.
Rhode Island Joins the i-Gaming Club
On Tuesday, Rhode Island became the latest state to launch internet gambling, joining New Jersey, Connecticut, Delaware, Pennsylvania, Michigan, and West Virginia. Nevada offers internet poker but not online casino games. Rhode Island’s online gambling platform is operated by the state lottery in partnership with Bally’s Corporation and IGT.
The state hopes to generate more revenue from online gambling, especially during the pandemic, when many people are staying home and avoiding crowded places. According to the American Gaming Association, the US commercial casino industry had its best year ever in 2023, winning $66.5 billion from gamblers. When figures from tribal casinos are tallied later this year, the combined total is expected to approach $110 billion for 2023.
New York and Maryland on the Verge of Legalizing i-Gaming
At the Next.io forum on internet gambling and sports betting, held on Wednesday, several industry panelists predicted that New York and Maryland are the most likely states to join the i-gaming market soon. Both states have already legalized sports betting and have a strong interest in expanding their gambling options.
New York Governor Kathy Hochul has expressed her support for online gambling and has included it in her budget proposal for 2024. She said that online gambling could generate $500 million in annual revenue for the state once fully phased in. The state legislature is expected to vote on the issue in the coming months.
Maryland voters approved sports betting in a referendum in November 2023, and the state is now working on the regulations and licenses for both online and retail sports betting. Some lawmakers have also proposed bills to authorize online casino games, arguing that they would create more jobs and tax revenue for the state.
California: The Golden Opportunity for i-Gaming
Another state that has the potential to become a huge i-gaming market is California, which has the largest population and economy in the US. However, the state faces many challenges and complexities in legalizing online gambling, as it involves multiple stakeholders and interests, including tribal casinos, card rooms, racetracks, and lottery.
The state has been trying to reach a consensus on online gambling for years, but has failed to do so due to disagreements and disputes among the various parties. The most recent attempt was in 2023, when a coalition of tribes proposed a ballot initiative to legalize sports betting, but excluded online casino games and card rooms. The initiative did not qualify for the 2023 ballot, and the tribes said they would try again in 2024.
Some panelists at the Next.io forum expressed optimism that California could eventually overcome the hurdles and embrace online gambling, as it is too big a market to ignore. Rob Heller, CEO of Spectrum Gaming Capital, said that “some of the dream is not quite fulfilled, which creates some opportunity”.
The Benefits and Challenges of i-Gaming
The panelists also discussed the benefits and challenges of i-gaming, both for the states and the industry. They agreed that i-gaming can provide a significant source of revenue for the states, especially during the pandemic, when many traditional sources of income have declined. They also said that i-gaming can complement and enhance the existing brick-and-mortar casinos, rather than cannibalize them, by attracting new customers and offering more convenience and variety.
However, they also acknowledged the difficulties and barriers that i-gaming faces, such as the lack of familiarity and understanding among some lawmakers and regulators, the opposition and competition from some gambling sectors, and the need to ensure responsible and safe gambling practices. They emphasized the importance of educating and engaging the stakeholders, highlighting the positive impacts of i-gaming, and addressing the concerns and issues that may arise.
