SARATOGA SPRINGS, NY – Those hoping for the legalization of iGaming in New York anytime soon received a reality check from Assemblymember Carrie Woerner on Tuesday.
During a panel discussion at The Racing and Gaming Conference, Woerner (D-Round Lake), who leads the Assembly's committee on racing and gaming, expressed her skepticism about the future of online casino betting. She stated that the legalization of such activities seems “perpetually five years away.”
When a key figure in the committee responsible for advancing iGaming legislation makes such a statement, it’s safe to conclude that New York is unlikely to join the ranks of the seven other states (eight if including Nevada for online poker) that currently have licensed casino applications.
For years, discussions at conferences like this one in Saratoga, the Global Gaming Expo, or SBC Summit Americas suggested that a national acceptance of iGaming was nearly inevitable. Now, that certainty has shifted to a more tentative outlook.
The idea that iGaming will suddenly gain momentum similar to the rapid rise of sports betting a few years back is misguided. This realization has been growing in the industry, as many share the sentiment that immediate expansion is unlikely.
During the iGaming panel, over 200 attendees were surveyed on how many states might offer iGaming within the next five years. The consensus ranged from 10 to 20 states, indicating that only a few more states may legalize it in that period, with a leaning towards the lower end of that estimate.
Historically, there was a belief that rapid expansion of iGaming was on the horizon. Data from states like New Jersey and Pennsylvania indicated that iGaming revenues significantly outpaced those of online sportsbooks. It was expected that states would seek new revenue sources post-COVID-19 pandemic, especially when federal funds were bolstering state budgets.
However, as the economy has slowed, state politicians have focused more on addressing constituents' concerns about declining consumer spending power rather than pushing for new revenue streams.
Woerner noted, “We’re seeing a stagnation of disposable income in the economy generally. So if disposable income is stagnant, the more money you’re spending on gambling, that’s less money you’re spending on going out to dinner, going to movies, or shopping on our Main Street.”
Unlike the widespread push for sports betting, iGaming has not received the same level of public support, despite evidence showing that online casino apps generate more revenue than mobile sportsbooks. The legalization of sports betting in 2018, following a Supreme Court ruling, sparked significant grassroots enthusiasm, especially among voters in states that saw their neighbors gain access first.
Moreover, the omnipresence of sports betting advertisements across various media platforms contributed to its popularity, although this saturation eventually became bothersome to some, including the politicians whose backing is crucial for advancing iGaming legislation.
Concerns have also been raised about underage access to gambling, which has fueled apprehension regarding advertising for a product that could potentially extract more funds from consumers.
In conclusion, while the future of iGaming may appear slow-moving, it is not an indication of its demise. The landscape continues to evolve, and many still find enjoyment in online gaming.