The end of 2020 marks the end of a turbulent year in gaming history, and the beginning of a new year that presents unique opportunities for those in the tech-innovation sector. Several significant factors have converged to create a whirlwind of change in the industry. These include the global pandemic, the overturning of PASPA by the US Supreme Court in 2018, the development of new technologies that make gaming easier to implement and regulate, the need for state and local governments to generate revenue, the aging demographic base of the land-based casino industry and lotteries, the growing interest in esports, and the increasing popularity of sports betting and igaming.
The availability of vaccines will mark the end of the pandemic, but it does not mean a return to the gaming industry of 2019. Many adults have embraced digital wagering and will continue to spend their money in this way, even when traditional forms of entertainment, like visiting casinos, become more accessible. State governments have recognized the shift towards digital wagering and have benefited from it. They have found that implementing mobile sports betting, igaming, or ilottery can be accomplished in a much shorter time frame compared to physical casinos, with fewer obstacles along the way.
However, this new reality comes with its own challenges. States will need to negotiate terms that allow for a full-service ilottery alongside full-service igaming. They will also need to develop policies that ensure strict licensing requirements are maintained, as these requirements are essential for maintaining public confidence in the gaming industry and preventing operators from breaking the rules. Additionally, policies should aim to maximize employment, capital investment, and urban redevelopment, which were important goals even before the pandemic.
In 2021 and beyond, gaming will continue to be shaped by the macro forces at play. Despite technological advancements, humans are inherently drawn to games of chance and social settings. These fundamental aspects of human nature will always be influential in the gaming industry.
Happy New Year!
Author: Michael Pollock
About the author: Michael Pollock is the Managing Director of Spectrum Gaming Group, a company that has worked extensively in the gaming industry. They have worked with numerous US states, territories, and countries around the world. Spectrum Gaming Group serves as the Executive Director for the National Council of Legislators from Gaming States (NCLGS).
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