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What We Can Learn From the US States That Have Legalized iGaming

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For many, gambling is an emotive subject. Some people love it. The anticipation, the thrill, and what-ifs that form while waiting for the result. However, some people and communities object to gambling on moral grounds; these could be related to religion, morals, or traditions. The USA has always had a strange relationship with gambling ranging from total prohibition to Las Vegas marketing itself as the world’s gambling capital. Ever since the Supreme Court overturned the 1992 Professional and Amateur Sports Protection Act that had served as a blanket prohibition on state-sponsored sports betting, state after state has opened up to legalized gambling. Before the ban was lifted, it was estimated that Americans wagered $150 billion illegally every year.

That $150 billion figure illustrates that banning something does not make it go away; it simply drives it underground. While some states like Utah and Hawaii will never legalize gambling, many others are looking at the trailblazer states like New Jersey or overseas to Europe and seeing that regulated gambling can bring significant revenue to state coffers.

The state of New Jersey pushed for the change to the law, and New Jersey immediately passed laws that allowed Monmouth Park to begin to take sports bets. The state had licensed legalized online casinos and poker rooms in 2013, and by August 2018, the first online sports books in the state were opened.

We can learn from New Jersey alone that gambling is big business. In September 2018, the state handled $1.01 billion in wagers. The lion’s share of this came from igaming at nine casinos and three racetracks. In addition, according to the New Jersey Division of Gaming Enforcement, $92.7 million was spent online.

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What really matters to the states that have legalized online gambling is the revenue it generates for private operators and their shareholders and the taxes levied for the state. For example, the latest figures from the New Jersey Division of Gaming Enforcement are as follows:

“For the month of June, Internet Gaming Win reported by casinos and their partners was $133.1 million, reflecting growth of 24.4% compared to $107.1 million for the prior period. For the year-to-date period, Internet Gaming Win reported by casinos and their partners was $814.5 million, reflecting growth of 28.4% compared to $634.2 million for the prior year-to-date period.

Sports Wagering Gross Revenue: Sports Wagering Gross Revenue reported by casinos, racetracks, and their partners was $39.2 million for June 2022, reflecting a 44.9% decrease when compared to $71.3 million in the prior period. Sports Wagering Gross Revenue reported by casinos, racetracks, and their partners was $308.7 million for the year-to-date, reflecting a 16.2% decline when compared to $368.3 million for the prior period. ”

UK companies had highly developed gaming software and technology.  The best NJ online casino was able to integrate the existing games onto its platform to get it up and running quickly. The European operators had been working in legalized markets for years. So rather than try and reinvent the wheel, states that have legalized iGaming have imported the technology and business acumen from businesses that already knew what they were doing.

This model was followed up by all the states who went on to legalize iGaming. There are now 21 states where sports betting is legal. In  Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia, residents can play online casino games, including table games like blackjack and roulette and a wide variety of online slots. The technology behind these games comes from European brands. They already have an extensive portfolio of games backed up by the top software providers in the world. They also have developed the best algorithms to spot potential gamblers and prevent gambling harms where possible.

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There is constant innovation in this market. Companies are constantly bringing out new slot games to ensure that there is something for players to enjoy. In addition to the enhanced graphics and animations which make exciting virtual gaming online possible, gamblers can now play games with a live dealer without leaving the comfort of their own homes.

While the US might have been behind the UK and other countries in legalizing online gambling, the US land-based casinos are now looking to buy up the European pioneers. MGM has recently agreed to purchase Stockholm-headquartered online slots company LeoVegas.

The states that have legalized iGaming are finding that they are not only gaining revenues through taxation but are attracting tourists’ money too. Americans no longer have to go exclusively to Las Vegas to be able to enjoy a flutter. To gamble legally, a player must be physically present in their gambling state. They do not have to be permanent residents. This means that sports fans can enjoy a gamble on the game’s outcome. As well as the revenue from the gambling tax, a state like Pennsylvania can also benefit from hotel revenues from people attending the game or placing a bet from their holiday accommodation.

The most significant barrier to entry for operators is the high cost of doing business in a state like Pennsylvania. The tax rate in the state is effectively 36%, and operators have to pay an upfront $10 million licensing fee. As more states open up, will they need to start competing against each other?

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Calgary Sports and Entertainment Corporation

Play Alberta, CSEC Extend Partnership

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Teams under the Calgary Sports and Entertainment Corporation (CSEC) banner have expanded their long-term partnership with Play Alberta, the province’s premier iGaming destination. As part of the agreement, the Flames will feature AGLC’s responsible gambling program, GameSense, on their home helmets and a Play Alberta insignia displayed on their home jerseys. The Stampeders, Wranglers, and Roughnecks will integrate the Play Alberta logo onto their uniforms.

“There’s significant importance now to showcase meaningful responsible gambling efforts in the iGaming industry. I’m proud of our initiatives to provide GameSense with such a visible platform. GameSense promotes healthy gambling habits online and in person and including AGLC’s responsible gambling platform over the course of this partnership is a huge accomplishment,” Kandice Machado, Chief Executive Officer at AGLC.

The agreement makes Play Alberta the exclusive sports betting and online gaming partner of the Flames, Wranglers, Stampeders, and Roughnecks. Through the partnership, Play Alberta and CSEC will develop unique partnerships and in-arena giveaways during the season.

“Through GameSense, our partnership with Play Alberta equips our fans with the knowledge required if they wish to participate in gaming while they support their home team. We are both proud and excited to extend our relationship with Play Alberta that makes cheering for our teams that much more fun while also generating revenue to support the quality of life for Albertans,” said CSEC President and CEO Robert Hayes.

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Alberta is the first jurisdiction in North America to partner with professional sports franchises and integrate PlayAlberta.ca and social responsibility branding onto uniforms. It upholds AGLC’s commitment to responsible play, raising awareness of GameSense and Self-Exclusion, resources that give bettors the tools they need to make healthy gambling choices.

In addition, proceeds generated through the website go toward the province’s General Revenue Fund. In 2023–24, $235 million was generated for programs and services that Albertans rely on every day through Play Alberta, an increase of more than $42 million from the previous year.

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BCLC

BCLC Partners with CFL as Official Sports Betting Partner in British Columbia

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The Canadian Football League (CFL) and British Columbia Lottery Corporation (BCLC) have partnered to make BCLC’s online sportsbook – PlayNow Sports – the official sports betting partner of the 111th Grey Cup. BCLC, the only legal gaming operator in the province, is the newest Authorized Gaming Operator to partner with the league. The partnership builds upon BCLC’s commitment to football in the province – as both a longstanding supporter of the BC Lions and as an enthusiastic proponent of bringing the Grey Cup to Vancouver.

“BCLC is immensely proud to have PlayNow Sports as the official sports betting partner for the 111th Grey Cup. As a social-purpose company, BCLC works every day to generate win-wins for the greater good and serve in the best interests of the communities we call home. We’re thrilled to help bring together BC Lions and CFL fans from across the country in the spirit of celebration and community at this year’s Grey Cup Festival,” said Dan Beebe, BCLC’s Chief Operations Officer.

In celebration of Canada’s largest single-day sporting event returning to B.C. for the first time since 2014, the CFL and BCLC are holding a special contest for fans in B.C., Saskatchewan and Manitoba. The Grand Prize consists of two tickets to the championship game, two Grey Cup Festival passes, travel, accommodation, $500 in PlayNow Sports free bets and more.

“Responsible sports wagering, and the entertainment it provides, is an important part of the future of CFL fandom. Our work with BCLC allows fans to deepen their connection to the league, but more importantly, it strengthens our efforts to support British Columbians and the community through the valued programs and services they rely on every day,” said Tyler Keenan, the CFL’s Chief Revenue Officer.

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The CFL’s province-specific Authorized Gaming Operator program works with partners to authenticate and regulate the league’s sports betting landscape. In 2023, the league complemented its existing wagering policies and by-laws with an enhanced Match Manipulation Policy. It is highlighted by an annual education component for all full- and part-time CFL personnel, including players, regarding their individual roles and responsibilities in supporting the league’s high standards for integrity and responsible gaming practices. All CFL personnel are strictly prohibited from wagering on league activities.

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Canada

Goldrush Expands to Ontario with Delasport’s Turnkey Solution

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South Africa’s premium online gaming and entertainment provider, Goldrush Gaming, is expanding to Ontario, Canada, powered by Delasport’s full turnkey solution and managed services. The partnership is another key step in both Delasport’s steady positioning in the key Canadian jurisdiction and Goldrush’s streak of cross-vertical success in iGaming.

The award-winning supplier’s solution is designed to accommodate all Online Sportsbook and Casino needs, and Goldrush’s players in Ontario will soon enjoy the most innovative Casino and Sportsbook features in the industry. These features include player engagement tools such as SuperPot, missions and tournaments, unmatched personalization capabilities with My Sportsbook, My Casino, My Combo, and My Event Builder, Booster Panel for mobile devices, and Hot & Cold Casino game categories, and much more.

“Partnering with established brands such as Goldrush in Ontario is an honor and confirms that we’re on the right track with a third partner in this market, in turn validating our global expansion strategy”, comments Delasport’s Global Sales Director Reece Calderbank“In the hands of partners like Goldrush, the quality and innovation our products provide to customers will enable Goldrush’s talented team to offer the best betting experience in the market to their players.”

Goldrush Online Director Dwain Powell shares this sentiment. “Goldrush’s legacy of premier gaming will offer Canadian players a diverse, rewarding entertainment experience. We are excited to extend our product and services to the Canadian market and believe that Delasport is the perfect partner to achieve our goals – all while bringing customers a unique and memorable gaming product’’.

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Goldrush Group Canada is a branch of the esteemed Goldrush Gaming Group, which was established in South Africa over 25 years ago.

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