A New Approach to Online Gambling: Legalizing Live Dealer Games First
As legislative debates surrounding the legalization of online casinos in the United States continue to stall, a fresh perspective has emerged from one of the industry’s pivotal players. Soo Kim, Chairman of Bally’s Corporation, advocates for a more incremental approach by initially focusing on the legalization of live dealer casino games. This strategy aims to establish a foothold for broader online gaming operations while addressing some of the concerns that lawmakers have about the online gambling space.
Understanding the Live Dealer Concept
Live dealer games replicate the traditional casino experience in a digital format, enabling players to interact with actual human dealers. Games like blackjack and roulette, streamed live, provide an engaging gaming experience that merges the tactile elements of in-person casinos with the convenience of online platforms. Lawmakers may find this mix appealing as it lends credibility to the online gaming framework while simultaneously fostering local job creation.
Kim’s suggestion to start with live dealer games is based on the belief that they can act as a “half step” that introduces online gaming without the full range of complexities that come with legalized online slots (iSlots). By avoiding the contentious topic of iSlots, Kim argues that there may be less resistance from policymakers who worry about the potential fallout for local brick-and-mortar casinos.
State Implementation: A Proven Model
The logic behind Kim’s strategy is not merely theoretical. States like Rhode Island have already adopted this live dealer-only model, allowing Bally’s to stream live dealer games from its local casino. This approach has bolstered in-state employment and assuaged some regulatory concerns regarding the constitutionality of online gambling legislation. In Kim’s words: “In Rhode Island, the regulators felt really good about live dealer. They liked that we’re still employing people in the state and it had fewer constitutional questions.”
Addressing Lawmaker Concerns
In many states, fears over job losses and competition between online and traditional casinos have stalled proposals for broader iGaming legislation. For instance, Maryland and New York have blocked online casino expansion due to concerns of job cannibalization. Live dealer games provide an alternative that could alleviate these fears, as they are able to create jobs in a way that does not undermine the viability of existing terrestrial casinos.
Industry Perspectives
Kim is not alone in this thinking. Industry experts, including Charmaine Hogan of Playtech, have voiced that the introduction of live dealer games could help ease regulators’ concerns about online gambling’s impact on traditional gaming. Hogan emphasizes that this model represents a pivotal evolution in the iGaming space, enabling an immersive experience that combines the social aspects of gambling with online access.
A Mixed Reception
However, skepticism still surrounds the viability of this focused strategy. Howard Glaser from gaming supplier Light & Wonder warns that the potential tax revenue generated from live dealer games may not be substantial enough to entice state legislatures, particularly when it is acknowledged that a significant portion of iGaming revenue stems from slots. He states, “Even in states where live dealer is robust, 80% of revenue is still from slots. Passing part of gaming legislation has as many hurdles as passing a larger gaming bill.”
Legislative Efforts Across the Nation
Meanwhile, various states continue to navigate their unique political climates concerning online gambling. In Illinois, state Representative Edgar Gonzalez proposes that table games like blackjack may find favor with lawmakers who are reluctant to approve online slots, demonstrating ongoing discussions that align with Kim’s suggestions.
New York Senator Joe Addabbo, an advocate for online gaming, attempted to build support by incorporating live dealer provisions along with a job protection fund earlier this year, yet faced pushback from influential unions. Should Governor Kathy Hochul introduce online casinos in her executive budget, it could pave the way for a viable discussion around live dealer legalization.
A Way Forward?
Despite the myriad of challenges ahead, Soo Kim remains hopeful that a live dealer-first approach may provide a path forward in the ongoing struggle for online gaming legalization throughout the U.S. By introducing this less controversial first step, supporters believe it could break the legislative gridlock that has historically hindered online casino expansion.
In conclusion, as the discussion around online gambling continues to evolve, the live dealer game model presents an innovative solution that aims to balance regulatory concerns, job creation, and the demand for digital gaming. With continued advocacy and collaboration among industry stakeholders, it is possible that a broader acceptance of online casinos will follow, ushering in a new era of legalized online gaming across America.
