Q&A with Jeremy Kudon, President, Sports Betting Alliance

What impact has iGaming passage had on brick-and-mortar casinos? 

Both in terms of revenue and foot traffic, iGaming has boosted existing brick-and-mortar casinos across the country, and Pennsylvania is a great example of this. Instead of drawing customers away from existing casinos as some feared, several studies found the opposite effect. The Analysis Group looked closely at the data from Pennsylvania and elsewhere and found that land-based casino revenue growth rates increased by nearly two percentage points after the introduction of iGaming. They surveyed iGaming users as well – finding that most didn’t change their land-based casino visits or budgets after using iGaming, and the minority who said their habits had changed were more likely to report that they increased their land-based casino visitation frequency and budget – not decreased.

Some in the industry are pushing for a decrease in slot tax rates. What’s the SBAs take?

In passing the original iGaming framework, Pennsylvania leaders decided to treat slots the same, regardless of whether they are internet or land-based. We think that was the right call and that parity across the industry should continue. Even with a 2% decrease in slot tax rates like some are proposing, it is likely that total tax revenue from slots will increase the year after that change because of the sustained growth we are seeing each year. Just last year, iGaming generated almost $2 billion in tax revenue – a 27% jump from the year prior. With that kind of growth, the state won’t lose out on any tax revenue from making a 2% change.

What are the benefits of iGaming?

iGaming and sports betting have been a phenomenal boost to the state of Pennsylvania. In terms of revenue and help for casinos, iGaming has been a clear win. But, in passing iGaming, the state has also gotten a leg up on taking on the illegal market that has seen several new offshore entrants who use social media and celebrities to target minors and follow none of the legal rules around iGaming.  By creating a safe and regulated alternative to illegal iGaming, Pennsylvania is showing that you can combat illegal online gaming and create responsible iGaming entertainment options for users to enjoy.

What are the responsible gaming tools that iGaming and regulated online sports betting customers currently provide their customers?

Regulated online sports betting and iGaming providers have implemented state-of-the-art consumer protection measures to ensure safe and responsible engagement. Every transaction takes place through a registered account where customer age, identity, and location are verified. Operators use geolocation technology and verification measures to ensure that those under the legal age don’t access their site. Operators also implement robust monitoring for responsible gaming concerns and train every staff member on how to detect and report problem gaming. Users can set both time and financial limits on their betting activity, and they actively offer both educational and mental health resources for anyone who signals that they are at risk. Offshore illicit sports books and iGaming providers offer none of these benefits and deserve far more public scrutiny.