Enthusiasts express optimism about future of video gaming at conference event
Gaming CEOs Unleash Their Thoughts on American Economy at East Coast Gaming Congress
🔥Let's dive into the latest buzz from Atlantic City as industry bigwigs tackled hot topics at the East Coast Gaming Congress! 🔥
Tariffs and the Looming Question
Barry Jonas of Truist Securities shed light on some major discussion points in an April 16 investor note. The rollout of various policies, including tariffs and significant spending cuts under the current administration, has raised concerns. Yet, the gaming honchos seemed optimistic that it's too early to determine the complete impact of tariffs.
Bulwarks Against Tariffs
Regional casinos and online gaming, according to panelists, stand strong against the billows of tariffs. Conversely, they expressed worries about waning international travel trends, with Vegas being the most susceptible.
A Silver Lining in the Economic Storm
Unpredictable economic conditions have sparked an upside for gamers – states might be more inclined to adopt online gaming due to drained state budgets.
Igaming: The Debatable Savior?
Opinions on the desirability of igaming continue to diverge among CEOs. While some see it as an opportunity and means to expand their customer base, others view it as a threat to land-based casinos and the jobs they provide.
Collaboration Over Competition
Online lottery games, some resembling igaming products, have stirred tensions. However, Executive Vice President of Scientific Games, James Schultz, advocated for a more collaborative approach to have a stronger shot at legalizing online gaming at state levels and promoting interstate gambling compacts.
Sweepstakes: A Thorn in the Industry's Side
American Gaming Association President, Bill Miller, lambasted unsanctioned sweepstakes-based games as tax-evading entities lacking any form of responsible gambling. He supported banning them, claiming they jeopardize the larger gaming industry.
Kudos to Virginia's Gov. Glenn Youngkin and legislature for cracking down on sweepstakes games, applauded Miller and Rush Street Interactive CEO, Tim Drehkoff. Not only did the ban boost Rush Street's revenues by up to 30%, but it also served as a model for other states to follow.
Taxing Slot Routes: A Gold Mine for States
The subject of slot routes emerged as another potential source of taxable income. PCI Gaming CEO, Jay Dorris, demanded that Pennsylvania's slot routes tax be raised to the same 54% as casino slot machines.
Predictive Markets in Sports Betting: A Grey Zone
Predictive markets found some support in sports betting, but Miller believed they undermined the state-level frameworks established since 2018. The industry is under the scrutiny of several states, with some filing cease-and-desist letters, but the situation remains fluid.
New York City Casinos: The Horsing Around Begins
The horse race for securing Class III status in New York City is heating up, with MGM Empire City and Resorts World New York regarded as front-runners. The anticipated third casino could set its sights on Queens or another nearby suburb, deal a significant blow to Atlantic City, potentially reducing its revenue by 25%.
The Optimistic Visionaries
Two CEOs, MGM's Bill Hornbuckle and Caesars's Tom Reeg, shone with their positive outlook on the industry's future. Despite the challenges and uncertainties, their optimism and resilience are steadfast. Warning! Economic downturns, pandemics, and tariffs won't deter these giants! Watch out world, they're storming ahead!
Sources: [1], [2], [4]
Intriguing Fact: MGM has risen to maintain approximately 15% market share in Macau post-pandemic, up from a pre-pandemic 9%. Can't get enough of the thrilling rise of the gambling titans? Follow the continuous saga of the gaming industry!
- Tom, the CEO of Caesars, is likely to see igaming as an opportunity to expand their customer base, but some other gaming CEOs may view it as a threat to land-based casinos and the jobs they provide.
- Financial analysts predict that regional casinos and online gaming may withstand the impact of tariffs, but their growth could be hampered by the decline in international travel trends, with Vegas being the most susceptible.
- The increasing economic instability has possibly made states more inclined to adopt online gaming, given the draining of state budgets.
- In the sphere of business and finance, William Schultz, the Executive Vice President of Scientific Games, proposes a more collaborative approach among industry players to legalize online gaming at state levels and make interstate gambling compacts stronger.
