Report: Why US casinos should embrace online

30 June 2017

Independent research and consultancy firm Spectrum Gaming Group has published a white paper updating its 2002 theory on how land-based gaming and online gaming could converge in the US market.

At the time its Spectrum Internet Gaming Heuristic Theorem (SIGHT) was first published, online gambling was in its nascent stages, although in the US the legal market has not moved on all that much since then thanks to UIGEA’s disruption to the development of the igaming market.

However, as states gradually start to legalise online gaming, Spectrum has revisited some of its earlier assumptions with some interesting results.

One of its 2002 predictions was that land-based gaming companies would stop resisting online gaming and to some extent this is now happening, with Spectrum observing operators “moving along the continuum from rejection to acceptance to embrace”.

Although some industry stalwarts may be holding out, the white paper goes on to list a number of reasons why they should change their thinking.

For example, the research found that rather than cannibalising land-based revenues as is feared by some, instead online gambling was bringing in new users, particularly those in the much-coveted Millennial demographic.

Further, it found that even when land-based customers signed up online, rather than shifting their spend from one channel to another, they were increasing it.

The authors likened fears that online gambling would see an end to casinos to the fears Hollywood executives had when TV was first introduced, pointing out that rather than cutting cinema sales, studios had benefited from the new marketing channel and found new ways to monetise older films.

Featuring case studies from some of the US’s biggest casino brands, the report also delves into the relationship between lotteries and land-based casinos. Read the full report here or view it below.