Spectrum Gaming cites sweepstakes, Texas, and adjacent M&A as key 2025 trends
Operators, regulators and suppliers told to keep an eye on several issues in igaming, according to independent research and services group
Spectrum Gaming Group has released its annual list of the top 10 trends in US igaming, with the research group expecting further M&A from operators and a greater focus on the growing sweepstakes casino sector.
Spectrum said the list includes the most “significant” issues for regulators, operators, and suppliers to be aware of over the next 12 months, with each topic to be impactful against sector “economics and public policy.”
On the topic of sweepstakes gaming, the independent research group said the industry will continue to watch to see whether the sector is a “threat or opportunity,” with Spectrum noting it could act as a catalyst for states potentially legalizing igaming.
Rush Street Interactive CEO Richard Schwartz made similar comments in a Craig-Hallum Online Gaming Conference last week, as he noted the rise of sweepstakes could encourage states to bring online casino into the legalized frame and secure further tax dollars.
However, Spectrum said there “appears to be little movement for igaming to be approved in new jurisdictions for 2025.”
The group did note there may be a continued closing of the gap between revenue in land-based casinos and online.
Using New Jersey’s igaming revenue from October as an example, the firm said online revenue surpassed retail revenue for the first time and that across the six other states the gap is constantly closing.
One state that could launch its market is Texas, with Eilers & Krejcik Gaming estimating more than $2.6bn annually in economic output.
Lawmakers will raise the question of legalizing online sports betting in the 2025 legislative session which opens on January 14 — a sports betting bill was approved in 2023 but expired after it was not debated in the Senate.
Spectrum added it will be tough for proponents to get sports betting legalized in the face of potential “strengthened efforts by opponents.”
Spectrum also expects more M&A going forward, after the past year saw the likes of DraftKings acquire Jackpocket for $750m and Aristocrat complete the $2.1m NeoGames purchase in April.
Spectrum Gaming noted: “Operators are employing a single, cross-platform strategy as they seek new ways to leverage technology while gaining greater access to player databases.”
Another trend to keep an eye on is sports betting, with operators not only seeking new products and bet types but also watching out for state gaming tax hikes.
Illinois made headlines last year after introducing a sliding scale of GGR tax from 20% to 40%, replacing the previous 15% flat rate.
Lawmakers in Louisiana had suggested upping its sports betting tax to 51%, although that has been pulled back on, with a new rate to be proposed in 2025.
Other trends listed by Spectrum include policies that are at odds with past practices which could lead to a reduction in the public’s confidence in gaming, as well as operators and regulators.
Several other topics were land-based focused, including skill machines and what could happen to bring brick-and-mortar casinos to New York.