As it has been doing since 2005, Spectrum Gaming Group today released its annual list of the U.S. Top 10 Trends in Gaming – the most significant issues that regulators, operators and suppliers need to consider as they make plans for the coming year. (Spectrum will release its list of International Top 10 Trends next week.) This list, in alphabetical order, represents the issues that will be most impactful to economics and public policy.

Digital Sweepstakes Gaming: Whether legal or illegal or somewhere in between, states and the mainstream gaming industry alike will continue to watch this upstart form of gaming closely to determine whether it is a threat or an opportunity … and potentially a catalyst for states to legalize traditional igaming.

Historical Horse Racing: Where casino slot machines are not permitted, both states and pari-mutuel and gaming industries will continue to advocate for the legalization or expansion of historical horse racing. Kentucky, New Hampshire, Virginia and Wyoming have demonstrated the potential of HHR machines, which have greatly narrowed the performance gap between them and slots.

Igaming: There appears to be little movement for igaming to be approved in new jurisdictions for 2025. Meanwhile, there are emerging indications that the continuing growth of igaming revenues in some of the seven current states may be slightly impacting retail gaming revenues, as seen in flattening year-over-year growth. In New Jersey, igaming revenues in October surpassed retail casino revenues – and the gap is narrowing in other igaming states. This deserves careful analysis in 2025.

Merging of Verticals: Operators are employing a single, cross-platform strategy as they seek new ways to leverage technology while gaining greater access to player databases. Examples include the acquisition of Jackpocket by DraftKings, the acquisition of NeoGames by Aristocrat, and distributed gaming operator Accel Entertainment moving into casino operations, which followed moves by casino operators Boyd and Penn Entertainment into route operations. More such acquisitions across verticals can be expected in 2025.

New York City: After delaying the process this year, New York State intends to award up to three full-scale casino licensees for the New York City metro area. A key decision will be whether the state essentially converts current racetrack gaming operations Empire City and Resorts World NYC into full casinos while also selecting a third winner, or awards the three licenses to other applicants.

Policy: Emerging generations of elected and appointed officials are modifying and establishing gaming policies that are increasingly at odds with past practices. A vivid example of this can be found in states that are considering authorizing new forms of gaming (as identified in this list) without regard to maintaining standards of licensure or focusing on the integrity of licensees. This trend raises the risk of reducing public confidence in gaming.

Responsible Gaming: Operators and regulators alike are trying to determine how best to prevent problems and get ahead of negative trends in a player’s gambling activities. However, this will require data sharing and new legislation and regulations. 2025 is likely to see this issue and how far to go with it as a topic that jurisdictions will grapple with, especially those that typically lead in player protections and health.

“Skill” Machines: Various states face an increase in machines that are referred to as “skill” machines, while the regulated gaming industry views them as a form of unauthorized, unregulated gambling. While the issue is being debated, the number of locations – as well as the number of machines – continues to increase. Proponents of these games are endeavoring to seek licensure and to be taxed, while opponents say they cannibalize existing forms of legal gaming, and do not meet the requisite standards for licensure.

Sports Betting: Having expanded wider and faster than any other form of legal gambling in this country’s history, sports betting operators will continue to look for new products, bet types, and promotions while also keeping an eye on potential state gaming-tax hikes as states’ federal pandemic aid runs out.

Texas: As the Texas biennial legislative session resumes in January, there will be the usual hope for enabling casino legislation, led by Las Vegas Sands – as well as a push for sports betting in this state highly prized by the gaming industry. But it appears to be another uphill battle for proponents, and the legalization push may have strengthened efforts by opponents.

About Spectrum Gaming Group: Spectrum is a non-partisan consultancy that specializes in the economics, regulation and policy of legalized gambling worldwide. Spectrum has provided independent research and professional services to public-sector and private-sector clients since 1993, having worked in 44 US states and territories and in 48 countries on six continents. Employing renowned experts in every facet of the gaming industry, Spectrum serves state, tribal and national governments, casino operators, suppliers, regulators, developers, investors, law firms, and other gaming-related professionals in all sectors of the legalized gambling industry. Contact Spectrum at solutions@spectrumgaming.com or +1.609.926.5100.