With the US Embracing Sports Betting, Will We See the Same for Online Casinos?

Sports betting has seen an incredible rise across the US, especially since the legal landscape changed over the last few years.

According to figures, more than $375 billion in total handle (money wagered by punters) has been reported across the 38 states that have legalized the activity since the Supreme Court invalidated PASPA in May 2018. At the same time, almost $33 billion in overall revenue has been generated.

Could the country also experience this with online casinos if legislation were to change?

Could online casinos thrive in the same way?

Casino gaming is something that has typically been reserved for physical experiences in America. There have been several laws in place that have restricted it from being an activity that could be enjoyed online.

Indeed, it has often left Americans to visit locations like Las Vegas and Atlantic City. These destinations have become synonymous with industry across the country, as many head for a weekend or short break strictly for their casinos. Because of this, they have become a popular tourist location for people domestically and internationally.

If the uptake were to increase, it could lead to fewer going to Las Vegas, Atlantic City, or the venues they have in-state. If laws were to change, they could access the fastest payout online casinos from home, allowing them to enjoy the same experiences but without the need to travel to a physical destination.

However, could online casinos change this? There is every suggestion that it could.

The uptake has been slower compared to sports betting. Only a handful of states have legalized the activity thus far. Currently, it’s only possible to play online casino games legally in Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia. States that are thought to be among those that could legalize it soon include California, Illinois, Indiana, Massachusetts, and New York, as each has shown favorable actions regarding gambling activities in the past.

Why has sports betting been so successful across the US?

America has a rich sporting culture. Many of those who reside in the country follow several sports teams and athletes, from the professional level right down to college and school. Sports are an engrained part of their culture and it’s incredibly difficult for many of them not to enjoy them.

The arrival of sports betting arguably gave them a new way in which they could enjoy one of their favorite pastimes. The ability to wager on the sports and teams that they are passionate about added a new dimension and layer of excitement to the events, as they had something else to get hyped about.

While many like to watch their teams and cheer them on in their pursuit of sporting success, there is nothing better for sports fans than having bragging rights when walking into the office the next day or when sitting around with friends and family.

Why we might not see the same uptake across the US

Although there might be an initial boom should online casinos be made legal at some point in the future, it might be difficult to see it replicate the same success sports betting has had.

As mentioned, sports are the lifeblood of many Americans. Their lives can often revolve around the teams that they follow. Sports events like the Super Bowl or March Madness are often turned into huge events and festivities in which many participate. The ability to add further excitement to these tournaments and games through online wagering has helped to enhance them for some.

Casino games might not carry the same appeal. Las Vegas and Atlantic City can often be places which people see as a “bucket list” item, visiting once and engaging in casino gaming because of the way they’ve “made the destination” what it is and how they are synonymous with the location.

Indeed, that’s not to say that there would be instant success for the market. Many will likely engage in some form of gaming if it were to be made legal, but whether it would receive the same attention as sports betting remains questionable.

Another concern from the operator's standpoint has long been the fear of "cannibalization".  Mississippi serves as a perfect example of this and one of the primary reasons why a bill to allow for legalization of online sports betting failed during the last legislation period.

Casino operators there expressed concerns over the 90/10 split between online and retail betting in states that offer both and the potential that online casino gambling could siphon off business from the brick and mortar casinos.   Mississippi is one of a handful of states that only offers retail sports betting with mobile gambling available only on the casino property.