2 Years After SCOTUS Repeals the Ban, Here’s What’s Next for Sports Betting
The day the United States Supreme Court repealed the federal ban on sports betting — May 14, 2018 — has proven to be one of the most consequential moments for the evolution of the sports and casino industries — and a day that is already binding both together in previously unthinkable ways.
Twenty-six years after the Professional and Amateur Sports Protection Act (PASPA) became law, after a Herculean effort by the State of New Jersey, the gaming industry, many elected officials and more, the repeal decision almost instantaneously flipped the mindset of sports and gaming companies who were suddenly looking to the future as a massive opportunity stared them in the face.
Significant innovation has long eluded the gaming and sports industries. Sports betting, though, has enabled the casino industry to move beyond the traditional brick and mortar operations and pivot toward the mobile offerings, while the sports industry has begun to leverage their content in a compelling way that will ultimately drive more fan engagement.
Even as we’ve seen major progress in the last two years, we are still in the early innings of this evolution. Daily Fantasy Sports, once touted as the ultimate fan engagement tool, will soon become the speck of sand on the beach of sports betting.
As an advisor to media, sports and gaming companies, here are five ways I expect sports and casinos will continue a rapid evolution that’s just getting started:
- Once Oil and Water, Sports and Casinos Will Align on Capturing Discretionary Dollars: The casino and sports industries share more commonalities than most observers recognize. This is especially true when it comes to competing for the prized discretionary dollar. In this pandemic, it’s interesting to note the two industries’ alignment on best practices for welcoming patrons and customers back to sporting events and casinos. While we have seen the convergence of sporting venues success tied back to large mixed-use developments — see T-Mobile Arena in Las Vegas — I anticipate this line will be further blurred in the future. Sports teams are already actively lobbying for casino licenses so they can partner with gaming operators to maximize revenue opportunities through betting. As every industry scratches and claws for the attention of consumers, expect a deeper partnership to emerge between the casino and sports industries in the form of shared databases, rewards and best practices.
- Betting Lines Set by Algorithms and More Online Action, But Integrated with Brick-and-Mortar: All developments around mobile betting will undoubtedly translate into a holistic experience for the casino gaming customer. Expect to see a shared wallet for online gaming tied back to retail, more cashless payment acceptance on the casino floor, and rewards and comps for online play. Savvy casino operators will pull together all every piece to provide a seamless experience for the customer and leverage their brick and mortar assets as rewards for online play. Further, as the industry continues to forge down the online path, expect algorithms and AI to power line and odds setting, replacing the traditional manual setting.
- Stream the Game in One Palm, Place Your Bet in Another: In order to fully unlock the potential that the sports and casino industries see in sports betting, consumers must be able to stream games or contests in the palm of their hand and also place bets — known as Watch and Bet. With nearly every other sport dormant across the globe, table tennis has garnered significant betting action in recent weeks because customers can watch and bet on the games. Leagues and media companies are already reviewing their rights’ and determining their ability to sell streaming rights for betting purposes. To make in-play betting — imagine wagering on every at-bat, shot or stroke — operators need the tools to set lines for proposition betting in an expedient fashion. Weak internet connections cannot lag; compression has to happen in real time. More pieces must come together before real time betting is possible, but this is a critical step for maximizing fan engagement.
- Tech Companies Will Enter Rare Growth Market, Especially During a Pandemic to Promote Safety and Health: The legalization of sports betting has raised the profile of the casino industry and attracted attention from cutting-edge technology and payment processing companies. Few growth sectors exist — especially during a global pandemic — and online sports betting presents an opportunity for innovation in a traditionally anemic industry.
- Gaming Regulations Will be Updated to Adapt: While not the sexiest topic, the casino industry is notorious for the often complex and cumbersome regulatory process. And while much of it was put in place to counteract the old mafia days, regulations need adapt to keep up with consumer demand and pace on mobile platforms. Further, with the patchwork of states that are now offering sports betting, there needs to be a universal process to accept changes and move efficiently. Sports betting will move the regulatory process forward to meet consumer demands.
Over the last two years, sports betting has spurred the sports and casino industries to innovate and modernize at an unprecedented pace. Both have leveraged ecommerce platforms to directly access consumers in a new and engaging way. The trick will be figuring out how both industries tie this back to the existing brick and mortar operations and leverage the advancements and customers on the ecommerce platforms for a holistic experience.
Sara Slane, founder of Slane Advisory, built and led the coalition that made the case for legalizing sports betting and paved the way for the U.S. Supreme Court to overturn the federal sports betting ban in May 2018. She worked as an executive at the American Gaming Association and MGM Resorts International for nearly 15 years before launching Slane Advisory, a consulting practice that advises sports leagues, teams, gaming companies and media entities on sports betting.
