The new year brings hope for expanded iGaming legalization across the U.S., but industry expert Richard Schuetz suggests that progress will not match the rapid pace of online sports betting approvals.
In a discussion with Deutsche Bank analyst Carlo Santarelli, Schuetz, CEO of American Bettors’ Voice (ABV), emphasized that state-level approvals for online casinos are progressing slowly, citing concerns about cannibalization of brick-and-mortar (B&M) casinos as a significant factor.
“Opposition from B&M operators, which was always present, has intensified following the legalization of iGaming in Pennsylvania and Michigan,” Santarelli noted. These states have provided data that underscores the potential impact of online casinos on physical gaming venues, reinforcing resistance among stakeholders.
Limited iGaming Adoption
This pales in comparison to the 38 states and Washington, DC, that have legalized sports betting.
Slow Expansion Expected in 2025
In a recent report, Santarelli tempered expectations for significant iGaming expansion in 2025. He identified Illinois, Indiana, Maine, Maryland, New York, and Ohio as potential candidates for legislative action but suggested Maryland and Ohio offer the best chances of success.
While progress in these states would be welcome, the lack of movement in larger markets like Illinois and New York could lead to disappointment within the industry.
Wyoming, the smallest U.S. state, is also a potential iGaming candidate. However, its limited market size is unlikely to drive broader momentum for legalization.
Schuetz and Santarelli agree that opposition from land-based casino operators remains a major obstacle to iGaming’s growth.
California and Texas: Sports Betting Outlook
The conversation also touched on California and Texas, two key markets with significant potential for sports betting.
Schuetz reflected on the failed 2022 California ballot initiative, which sought to legalize sports wagering. He noted that commercial operators underestimated the influence of tribal casino operators and now recognize the necessity of collaboration.
“Schuetz believes tribes will eventually address power-sharing issues, potentially reaching revenue-sharing agreements, while sportsbook operators provide brand equity and technical expertise,” Santarelli explained.
In Texas, the prospects for sports betting are tied to the push for Las Vegas-style casino resorts. With support from Las Vegas Sands’ Dr. Miriam Adelson, momentum is building. However, Lt. Gov. Dan Patrick’s opposition to gaming expansion remains a significant hurdle.
For sportsbook operators, Texas represents a more attractive market than California, offering a competitive landscape without mandatory tribal accommodations.
As the industry eyes 2025, it’s clear that while progress in iGaming and sports betting is possible, it’s unlikely to achieve the rapid strides seen in recent years.
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