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The 2024 Indian Gaming Tradeshow & Convention (IGA) is in the books, and this year was one of the biggest and best ever. In case you couldn’t make it (or spent more time enjoying the banner Anaheim weather than the show), following are some of the key takeaways identified by our TIG team:
FanDuel leads the California apology tour
Two sports betting propositions failed in spectacular fashion in California, and FanDuel is leading the industry’s mea culpa. CEO Amy Howe was front and center at IGA to say that the commercial sports betting operators took the wrong approach in the prior legislative cycle, that they apologize, and that they understand sports betting in California needs to be built in partnership with the tribes. Tribal leaders had diverse responses, of course, but there seemed to be a near universal sense of pride and confidence in warding off legislation that they didn’t view as favorable to their nations. General sentiment from our conversations suggested openness toward partnering with the commercial operators in the long run – so long as the partnership is largely constructed on tribal terms.
Tribes look to Florida model as Interior shifts compact rules
The U.S. Department of the Interior (DOI) updated its rules on state-tribal compacts to reflect the findings of the West Flagler case – namely, that a compact can govern not only gaming on Indian Lands but also “directly related” activities that may include activities off those lands. DOI specifically calls out the portion of an online wager that takes place off Indian Lands as something that can be governed by compact. The big picture here is that we can expect a huge tribal push for compact amendments to include exclusivity for tribal operation of statewide sports betting and iCasino in states that haven’t yet authorized them, just as the Seminoles did in Florida.
Commercialization evolving, but not compromising, tribal business
This year more than ever before, the impact of tribal commercial gaming was evident at IGA, from the diversity of attendees and exhibitors to the content serving large and small casinos on and off tribal land. Despite the broader industry appeal and the increasing commercial focus, the priorities and ethos of tribes—including a focus on Native American culture—remained a steadfast overtone at every event and in business discussions. This commitment creates an extraordinary and unique segment in the gaming industry with checks and balances on business sustainability that are so often left behind.
AI making moves
AI was one of the hottest topics at IGA this year. From education sessions to the show floor, there was palpable excitement around tools purporting to offer a competitive advantage. Use cases included everything from security (both cybersecurity/hack prevention and on-the-floor) to CRM and casino floor management. We’ve also seen AI and automation supporting baristas, bartenders, and chefs, a particularly compelling application for challenging labor markets. In our view, much of the AI out there is nascent, and while many of these are great products, they contain fairly limited use of AI. So we see "AI" being highlighted as a sales technique, and we expect this trend to continue at industry shows for the foreseeable future.
AI still scares people. Despite the excitement about labor savings and having an ‘analyst-in-a-box,’ in over a half-dozen onsite conversations or more, someone remarked with authentic concern about how scary AI is or about their distrust of machines making decisions. Usually these conversations ended with an “as long as they use it appropriately” or “as long as there are some safeguards.” So, while the needle is moving and its benefits are clear, the AI industry still has an uphill battle for adoption among skeptics. This year’s conference contained great content to that end, but we expect there is more education needed to facilitate widespread adoption.
Looking ahead to iGaming
Running a tight race against AI, another of the show’s hottest topics was iGaming. Several high-profile bills have recently failed, leaving the current count of iGaming states at seven. Tribal leaders seemed particularly interested in how iGaming might be structured considering the updated compact rules and whether and how it might impact their land-based operations – a highly contentious issue in the space.
New Idea: Focus on slot advantage play
When we think about people beating the casino, we tend to think about card counters. But recent advances in slot technology have enabled a new breed of advantage players (APs). APs are players who play games when they offer an advantage to the player, rather than the typical advantage to the house. Just as blackjack APs make large wagers when the “count” is favorable, progressive jackpots, multipliers, and “must-hit-by” bonuses allow savvy slot players to patiently wait and then sit at machines when they’re deemed favorable to the player. This is not a new phenomenon, but “why should we care?” has often been the response, since the machines still make money, and “someone has to win those bonuses anyway.” At the IGA conference, Ari Mizrachi from Tangam Systems argued that casinos should guard against this, since that money immediately leaves the casino ecosystem, rather than being recirculated by ordinary players. And at a minimum, he contended, casinos shouldn’t be marketing to slot APs who are, in effect, stealing the infrequent wins that non-APs should collectively accrue and worsening the slot experience for the players casinos actually want. Ari also broke down the surveillance cost of catching card counters versus the expected loss to card counters and made the argument that focusing on slot APs is a much more efficient way to save money. Ari, of course, was also selling a tool to automate this detection for you, but this was great outside-the-box thinking nonetheless and possibly the most innovative session of the show.
As always, TIG will continue to stay on top of these and other emerging trends in tribal gaming. To learn more about how our expert services can impact your bottom line, please contact Chris Irwin or Brian Wyman for further discussion.
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