iGaming Expansion Will Not Match Sports Betting's Rapid Growth, Industry Expert Warns

iGaming Expansion Will Not Match Sports Betting's Rapid Growth, Industry Expert Warns

By Michael Harrison

January 11, 2025 at 12:27 AM

The expansion of iGaming across U.S. states will likely progress more slowly than sports betting, according to gaming industry veteran Richard Scheutz, CEO of American Bettors' Voice (ABV).

Albany cityscape with prominent church steeple

Albany cityscape with prominent church steeple

Currently, only seven states permit internet casinos: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. This stands in stark contrast to sports betting, which is now legal in 38 states plus Washington, DC, with Missouri joining in 2025.

The primary obstacle to iGaming expansion is concerns about cannibalization of brick-and-mortar casinos, particularly following experiences in Pennsylvania and Michigan. Deutsche Bank analyst Carlo Santarelli notes that traditional casino operators have become increasingly resistant to iGaming legislation.

For 2025, Maryland and Ohio show the strongest potential for iGaming legalization, while larger markets like Illinois and New York remain uncertain. Wyoming is also considering legislation, though its small population limits its market impact.

Regarding major gambling markets, California's path to sports betting legalization likely requires cooperation with tribal casino operators, rather than direct competition. In Texas, sports betting legislation might gain traction if it supports broader casino resort development efforts, though significant political hurdles remain, particularly from Lt. Gov. Dan Patrick's opposition.

For sportsbook operators, Texas represents a more attractive opportunity than California due to its potential for a competitive market without tribal gaming requirements. However, legislative success in either state remains uncertain for 2025.

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