The Changing Face of Gaming Legislation
INSIGHT | 2HEADS USA
At 2heads, we’ve watched gaming companies grow and the world of online gaming evolve. Historically, Europe always led the way. However, with the development of gaming legislations in the US, what does that mean for the gambling communities, the global corporations and the agencies that partner with them?
Traditionally, the US gambling culture has had higher restrictions placed upon it, naturally, as it exists within physical locations like Atlantic City or Las Vegas. However, in recent years the big US players; who have traditionally invested in resorts, have been looking externally at the growth of European online gaming culture and the disruptive force it brings to the existing geographic model. Building upon this knowledge, US companies started to explore opportunities for continued customer engagement beyond the walls of the casino or the limits of a resort city model.
For the past few years, these companies then worked with a ‘Play for Fun’ business model. Though it could be argued that this has been more of a marketing ploy, or an appetite wetter, instead of an opportunity for future business generation.
The true growth was happening elsewhere with the rise in fantasy sport gaming. A mass business generator –billions in revenue – where the profits weren’t going to the large corporations nor being regulated/taxed by the federal government. An interesting environment for development …
… and so on to the Good News™.
Recent changes to the US legal environment has opened the sport betting market to the online arena. This has, in turn, allowed established European companies such as Ladbrokes, Paddy Power Betfair and Playtech to partner with US companies. Essentially, accelerating access to a vast, previously untapped market.
Unsurprisingly, American operators have been fast to act. One case in point was the recent Scientific Games’ purchase of gaming group NYX. Scientific Games anticipated the Supreme Court’s judgement and made the purchase in advance of any rulings, placing themselves in prime position for the moment the American market becomes accessible.
There is potential now for a period of sustained growth, with some predictions showing more than double the growth for online gaming since 2009. Current forecasts suggest the online gaming industry will be generating $52.96 billion by the end 2019. If we compare that to 2015 US land-based casino revenue of $71.1, it can be safely argued the market is dealing with a sleeping giant. Though the sector is still in its infancy in the US and external economic factors call for caution, the potential upside for investment cannot be ignored.
Going into 2019, 2heads are in conversations with clients on how to best engage this new tranche of American customers. It is the prime time to invest in the US market and show & event attendance is at an all-time high, with clients seeking new innovative ways to conquer market share. We work with them on brand engagement and interactive environments that focus attention on their uniqueness within the industry.
To understand the ways 2heads can help you, please contact our team now