Almost 40 US jurisdictions have legalized sports betting in one form or another. There is no denying the fact that the demand is higher, with residents wanting a broader range of offerings. However, there could be a delay in the launch of online casinos in the US market. Some of the reasons include a lack of political momentum, high borrowing costs, and backlash about social outcomes.
To begin with, the United States is currently in a political year in which the majority of candidates prefer to play it carefully. The priority is to focus on or highlight agendas that are more likely to yield results over a longer period of time or strengthen one’s chances of winning the election. A new launch could take somewhere between 12 and 18 months. Lauren Sieler, the founder of Global Gaming Advisors, said that it was not coming to fruition, adding that everything could die by the end of this year.
There has been a complete and utter collapse of momentum for the majority of the candidates. Such states are included, along with New York, Indiana, and Colorado. They are unlikely to experience another launch until a transition occurs in the political movement.
The backlash affects social outcomes. This means that several authorities need to be more confident about what the rapid expansion of online casinos would do to residents. It could lead to social ills and gambling addictions. Conservative lawmakers have primarily presented these points, often emphasizing their opposition to an increase in the number of online casinos. Some of the best online casinos in the US have been able to tackle this ideology by legally adhering to prevailing regulations. However, concerns remain the same with conservative leaders.
The harm online casinos would inflict on brick-and-mortar stores has emerged as another societal issue. Customers will be able to engage in casino activities from home via their devices. This could potentially reduce the number of customers visiting physical venues. This, in turn, could lead to a decline in business and employment opportunities for their staff. In other words, physical casinos will be financially disadvantageous.
Finally, a higher borrowing cost is likely to restrict any upcoming corporate acquisition. This has made the expansion of iGaming uncertain, with many operators taking a call to rather improve the products they have in store.
iGaming operators have repeatedly argued that they focus on generating revenue and providing better customer service rather than disrupting competitors’ businesses. Online offerings are more of a choice that anyone can make based on their perception. Online operators have backed their businesses with technology implementation and effective payment processing. They do have marketing techniques, but customers make the final call.
Moving forward, the industry expects online casinos to take at least 12 months to expand. The focus will be largely on making improvements to the current offering.