Although some states have yet to take action on iGaming, sports betting operators are still focusing on iGaming. They recognize the importance of iGaming to their business, even as some states remain hesitant about it.
Operators see the potential and opportunities of iGaming and consider it a crucial direction for business expansion. They believe that as time goes on, more states will start paying attention to and enacting iGaming legislation.
The mobile version of Fanatics Sportsbook is currently available in Ohio and Tennessee, and the operator is preparing to leverage its massive customer database of around 95 million sports enthusiasts for online casino gambling.
“iGaming will be a core component of our strategy,” said Matt King, CEO of Fanatics Betting and Gaming, at the SBC Summit North America in New Jersey last Wednesday.
Online sports betting operators have shown significant interest in iGaming, as evidenced by the data they disclose to regulatory agencies. For example, in New Jersey, total sports betting revenue in March was $93 million, while iGaming profits amounted to $165.7 million.
Following Matt King’s speech, executives representing BetMGM, BetRivers, and FanDuel engaged in an in-depth discussion about iGaming. Their remarks during the discussion highlighted how important iGaming is to these operators’ businesses and the opportunities they see.
Christian Genetski, President of FanDuel, stated at the SBC forum, “In our business, our focus on iGaming is on par with our focus on sports betting.”
Adam Greenblatt, CEO of BetMGM, pointed out that they have a 50% ownership stake held by casino operator MGM Resorts.
“Thus, gaming has been essential to us from the start,” said Greenblatt.
Operators are highly interested in digital data. Richard Schwartz, CEO of Rush Street Interactive Inc., the owner of BetRivers, stated that in markets where both online sports betting and online casino gambling are available, approximately 75% of the revenue comes from iCasino.
Schwartz further added that, on average, an online casino gambling player brings in gross revenue that is 5.3 times that of a sports betting player. Additionally, a user who bets in both sports betting and online casino gambling generates revenue for the company that is 14 times that of a sports betting player.
Schwartz said at the forum, “This is significant. Clearly, it’s an opportunity for the growth and profitability of this industry.”
Genetski acknowledged that the geographic scope of legal sports betting is much broader than that of iGaming. While 37 states have legalized sports wagering, only New Jersey, Connecticut, Delaware, Michigan, Pennsylvania, and West Virginia have authorized a full suite of online casino games. Several bills related to iGaming have been proposed in various states this year, but so far, no state has taken action.
Ontario, Canada, also has a competitive iGaming market, encompassing online sports betting and casino games. Within a year of operation, over 70 websites in this market generated over $35.5 billion in wagers, resulting in $1.4 billion in gaming revenue.
Genetski stated that some states may be reserved about the idea, but others that already regulate online sports betting and have physical casinos may start seriously considering iGaming. For example, New York is a highly anticipated market.
There are currently factors making it difficult to pass iGaming legislation. Legislators have limited time to pass bills in legislative sessions, and states have not yet felt the fiscal pressure to seek additional sources of revenue (such as iGaming). When this situation changes, the attitudes of state legislatures may also change.
Genetski said, “I believe you will start to see more expansion of iGaming, and these states will begin to change their stance.”