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Last week, TIG Partner Brian Wyman attended NEXT.io’s annual summit in New York and shared his insights from the program and surrounding conversations in a Field Notes article on LinkedIn. Read the article below and follow up in the comments here with any questions or to continue the conversation with Brian.
Legislation for iGaming Expansion is Dying
The push for expanded iGaming legalization faces significant headwinds in most jurisdictions. Texas remains firmly resistant to gambling expansion despite ongoing lobbying efforts, joining a growing list of states where legislation has stalled. Hawaii stands as the surprising exception, showing unexpected momentum (though still far from a certainty) toward a sports betting regulatory framework that could make it a newcomer in the regulated market. On Steve Ruddock’s podcast Straight to the Point as well as in a recent article by CDC Gaming, we’ve recently (very publicly) discussed the impacts that iGaming has on land-based casinos and jobs, but the bigger problem may be concerns about disordered gambling. My sense is that the iGaming industry needs a cohesive narrative (and mitigation strategy) to better engage local legislators on the issues of job loss and RG.
Sweeps and Prediction Markets
Despite the headwinds of cease-and-desist letters and adverse legislative efforts at what seems to be every turn, the overwhelming sentiment is that sweeps casinos and prediction markets are here to stay, and that the “duck test” just doesn’t matter (both of these surely “quack like a duck,” if you’ll forgive the metaphor). M&A in the space was a hot topic both on- and off-stage, which is welcome since there’s little action in traditional land-based M&A at current rates; but broader regulatory uncertainty makes valuations, and hence dealmaking, difficult. My take: the industry won’t wait for full regulatory clarity before moves are made.
Enter Crypto
The next frontier for regulated gaming may well be in crypto. I think this is a widely misunderstood space. Today, there are many unregulated (and some regulated) casinos that accept cryptocurrency as a payment method. But building a blockchain to support the entire casino infrastructure on a blockchain should have appeal to regulators with appropriate education efforts. Indeed, such products may be useful in other regulated industries (hello, finance). The industry is abuzz about Nigel Eccles’s BetHog launch and I suspect other players will follow.
On- and off-“campus” discussions I’ve had have also included such topics as emerging gaming legislation (land-based domestic, international), marketing partnerships, AI tools, tribal interest in iGaming and sports betting, responsible gaming efforts, innovative sports betting tools, and project financing efforts and challenges.
For anyone who missed the event (or, if you just missed me at the event), I’d love to catch up. Send me a note!
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