Online Gaming Currency Garners Interest in the United States and Expands in Latin America
Recently, the pros and cons of online gambling, also known as iGaming, were discussed in detail during a gathering of state legislators specializing in gaming. Several experts in the field expressed their views on the subject, with most of them believing that the time is ripe for the industry to expand in the digital realm.
In terms of recent developments, Colorado is the most recent American state to begin considering a foray into the online casino market, possibly spurred on by the booming online sports betting industry and the availability of various sportsbook applications. Rhode Island is the most recent state to approve iGaming, bringing the total number of U.S. states offering legal online casinos up to seven. Other states that have legalized online casino play include Pennsylvania, New Jersey, West Virginia, Connecticut, Delaware, and Michigan. While Nevada allows online poker, it remains the only state that does not permit online slot machines or other traditional casino games.
Revenue generated in these states is currently drawing a lot of attention. In May 2023, Michigan led the pack, raking in $159.4 million. This was followed closely by New Jersey's $158.9 million and Pennsylvania's $137.2 million. Although these states are larger than West Virginia, Delaware, and Connecticut, the six states collectively generated approximately $5.5 billion in revenue over the past year and $1.5 billion in tax revenue.
According to Howard Glaser, head of global government affairs and legislative counsel for Las Vegas-based Light & Wonder, the potential market size for iGaming could be as high as $30 billion if all 42 states that currently offer some form of gaming were to embrace it.
Latin American iGaming Boom
The iGaming industry in Latin America appears to be thriving, with more than 650 million people and an internet penetration rate of around 67%. The region's sudden interest in video games has made it an attractive market for game developers and distributors, with a predicted value of $4.1 trillion by 2023.
Colombia may be one of the most attractive online gaming markets in the region due to its favorable business environment and legal stability. Since online gambling regulations were introduced in 2016, the Colombian market has witnessed remarkable progress, and it is projected to experience an annual growth rate of 8.1% by 2025.
In Argentina, online gambling is regulated by individual provinces. The legalization of online gambling in Buenos Aires has had a significant impact on the gambling industry in the country.
In Peru, the online gambling and sports betting industries are experiencing rapid growth, with the help of new laws and regulations and an increasing number of digital payment options.
In Brazil, the olf scene is a bit more complex. Decree Law 9215/1946 outlaws casinos under the Criminal Contravention Act. Law 13756/2018, on the other hand, allows for online and land-based fixed-odds betting, with the Ministry of Finance serving as the regulatory authority. Sports betting is currently legal, but still unregulated.
With a whopping 70% of Brazilians participating in online gaming, the country's projected gaming revenue growth is expected to reach $2.6 billion by 2026.
Back to the US
In May 2023, seven U.S. states made attempts to legalize iGaming, but all their attempts failed. Indiana, Iowa, Illinois, Maryland, Kentucky, New York, and New Hampshire all tried, with at least one New Hampshire representative expressing his intention to try again in 2024.
Interestingly, concerns were raised by brick-and-mortar casinos in New Hampshire about the potential impact of online gambling. However, Howard Glaser of Light & Wonder presented a different perspective. He argued that legalizing iGaming wouldn't prey on the existing market, but would rather expand it, as online games could serve as an incentive for people to visit physical casinos.
Glaser also pointed out that online play is already happening illegally, and legalizing iGaming would funnel revenue away from these black-market operations.
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Source: www.casino.org
