Where is Igaming Legal? | Las Vegas Advisor

What's the current status of the legality of playing casino games on the Internet? Sports betting on cell phones is getting all the attention lately, but I rarely see anything about igaming. What states allow it and how much money does it bring in?

Online casino games are legal in six states: New Jersey, Pennsylvania, Michigan, Delaware, West Virginia, and Connecticut. Connecticut just started allowing igaming in mid-October. Michigan launched last January.

In the domestic gambling world, sports betting is, as you say, getting all the attention. It has exploded so fast since PASPA was overturned a scant three and a half years ago that sports book operators are proliferating -- and spending money on player acquisition -- like there's no tomorrow and records for handle are set month after month. To observers, it can seem like it's all anyone in the industry talks or even thinks about.

However, the hold from sports betting is, relatively speaking, minuscule. In October, Nevada booked $1.1 billion worth of sports wagers, second highest in history behind New Jersey's $1.3 billion handle that same month. The win, on the other hand, was a mere $48.3 million, or 4.4%. Compare that to the average hold of tables games at 15%-20%.

With Internet casino gambling, on the other hand, the sky's the limit for profitability. Total igaming revenue for the same month, October 2021, in Pennsylvania, New Jersey, Delaware, West Virginia, and Michigan added up to $346.9 million, an increase of 5% over September’s $329.9 million. That's nearly $300 million more than sports betting, six-plus times the hold.

Most industry projections predict that igaming revenue will continue to far outpace that of sports betting as time goes along. But it will be a slow process of expansion. It's definitely a tougher sell to state legislatures, given the potential for abuse by problem gamblers.

But all signs point to igaming as the cash cow of the gaming industry sometime in the future.

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Kevin Lewis Dec-18-2021

I wonder...

Are brick-and-mortar casino operators in those states and elsewhere fighting furiously to stop or at least contain online gambling? I would expect massive efforts on their part to reclaim the money they've always thought of as "theirs"--paychecks burning holes in the pockets of degenerate gamblers.

If there's even a whiff of online gambling coming to Nevada, I wouldn't be all that surprised if the casino megacorporations applied the Benny Binion Solution to the problem. "In a tragic boat accident..."

Bumbug Dec-18-2021

In Virginia

The Virginia lottery has online gaming with several dozen different slot machine-type games available. They regularly offer me incentives to play but I've only tried a couple of times with little success. It must be profitable for them based on how many e-mails I get urging me to play. I'm not sure if that constitutes igaming or not, but I thought I'd offer the information in case someone finds it helpful.

Michael7707 Dec-18-2021

iGaming Complements B&M Gaming

In response to Kevin Lewis, my experience in the New Jersey market has been totally the opposite. Perhaps this is because any entrant to the NJ-licensed online gaming market must partner with a brick-and-mortar casino license-holder in order to be able to offer their services. From what I understand, the rules are similar in other regulated internet gaming states.

Not only that, you can earn tier/reward points for the properties that are affiliated with the online casinos. For example, I play at Harrah's online, Caesar's online, and Tropicana online casinos, and I get points for the Caesar Rewards program. The same is true of Borgataonline.com, which gives mlife points along with Internet Reward Points, which can be exchanged for Express Comps usable at Borgata and other MGM properties.

During COVID-19, many AC casinos relied upon their igaming operations to bring in some revenue while their physical locations were shuttered. So these two forms of gaming are complementary.

Carl LaFong Dec-18-2021

Online gaming in Michigan

There are at least 6 online sites that have both traditional casino gaming AND sportsbooks. What these sites offer is a choice: whatever a gambler prefers to do in their regular casinos, can now go ahead and do it online, which is easier and more convenient than going out to the casino.

Question of the Day - 18 December 2021

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