View from the City: Learning lessons from Europe
Josh Brown, director of PwC, on US online gambling’s progress five years after PASPA’s repeal
There was limited fanfare to mark the fifth birthday of the repeal of PASPA on 14 May, a time we thought merited some retrospection.
Over the past five years, many observers have cooed as the market has developed and new states have regulated. The pace of growth has been blistering. Twenty-nine states have now regulated online sports betting and, while lagging, seven states have online casino.
This year, the online market will be worth $17bn in GGR, with double-digit growth per annum expected as existing states mature and new states regulate, albeit a lack of expected regulation in states like CA, TX or FL may throttle short-term growth. While a regulatory ‘domino effect’ is not expected, if the bill to legalise online casino in New York passes, this could trigger other states to reconsider their position.
The tone and focus of market participants is changing. At the IAGA Summit last month, there was a notable increase in the extent to which US participants discussed the risks of the black market and need for responsible play, mirroring the experience and focus across Europe.
In his address, Bill Miller, president and CEO of the American Gaming Association, spoke about the threat from offshore unregulated websites and skill-based machines to players, tax receipts and the wider economy. Separate sessions focused on responsible gambling measures in response to increased demand for problem gambling charities, higher prevalence of underage play and adverse industry press as a result.
Should other states follow Ohio’s approach by increasing tax rates and levying operator fines for poor marketing practices towards vulnerable players, the US will truly have come of age. Hopefully the US will learn from the lessons of Europe before it reaches that.