Online Casino Play Is Getting A Boost, But Its Hard To Count On That Continuing – Penn Bets

Operators of iGaming sites that have acquired new players during COVID-19 stay-at-home orders dont really count on such growth continuing.

That was one takeaway from a panel discussion on the future of interactive gaming Monday during the ICE North America Digital conference, an online gathering of officials connected to the industry.

Pennsylvania and New Jersey, the leading states with online casino games that can be played from home, both saw a large bump in such play over the latter half of March as brick-and-mortar casinos shut down. Revenue figures to be released over the next few days are likely to show the same thing for April.

A big question for the industry is what happens to such iCasino play and revenue in the future, once people can return to the casinos they have long patronized for socialization and entertainment.

I would say that it would be unusual to see growth sustained forever, Jesse Chemtob, general manager and vice president of casino for FanDuel Group, said of new customer acquisition.

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He said that if stay-at-home orders continue, however, there could continue to be organic migration of land-based customers willing to modify their behavior and go online for the first time to play.

Aviram Alroy, vice president interactive games for Mohegan Gaming Entertainment Corp., said the companys biggest growth in online customers has not been from the general public, but people already in its database from brick-and-mortar play at Mohegan Sun properties.

That is very encouraging for us, he said, to know that people who cant go to the casino right now are able to play online, not afraid of that hurdle.

Another question is to what extent additional states hurting for revenue as a result of coronavirus shutdowns recognize expansion into online gambling as one way of addressing such shortfalls. They can see that Pennsylvania and New Jersey are already deriving significant revenue in a way other states are missing.

West Virginia and Michigan are preparing to launch online casino games this year, but the iCasino industry has not seen anything like the wave of legalization that is spreading online sports betting across the country.

Every state is going to be dealing with [revenue losses]. We are going to have a significant budget hole, noted Michigan state Rep. Brandt Iden, who led the legislative effort to legalize online casinos in his state at the same time as online sports betting.

Legislative schedules have also been disrupted by the pandemic, however, and its unclear just what could still happen in the way of more states letting people play slots, blackjack, and poker online.

Chemtob said while more states could follow after Michigan and West Virginia, its too hard to tell at this stage.

I think every state is different, he said. Were hopeful that states look at this as a way to drive incremental tax revenue that they might not be receiving from other areas.

There are sometimes worries that adding online casinos could do harm to those that are land-based in the same state, but the panelists said New Jerseys experience over the past few years demonstrates otherwise.

Iden said that Michigans iLottery has profited the state without harming traditional retail lottery sales, and he expects the same complementary equation from adding iCasinos to casinos.

Once we are up online, I think youre going to see casinos probably bringing in more foot traffic, the lawmaker said.

While there are also concerns that the quick pace and easy accessibility of interactive gaming can heighten compulsive gambling problems, the panelists said theyve yet to see evidence of that occurring more during the pandemics increased play.

Chemtob and Avroy said their companies have responsible gambling teams that are monitoring such activity more closely, however, and online tools that enable players to voluntarily set limits on their time and spending are beneficial compared to land-based casinos.

We havent seen any material increase from that perspective, but its something were keeping an eye on, Chemtob said.

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Online Casino Play Is Getting A Boost, But Its Hard To Count On That Continuing - Penn Bets