Analyst: "Covid-19 Could Spur More States to Legalize Online Casino"

[mu_enrico]

According to Nasdaq.com:

Morgan Stanley analyst says the impact of Covid-19 could spur more states to legalize online casino and sports betting.

With casinos closed across the country and sports betting drying up, online casino-style gambling is proving to be a bright spot for the industry.

Internet gambling revenues (excluding sports betting) in New Jersey rose 66%, to $65 million in March, the state reported recently. Online gambling includes slots as well as table games like blackjack. New Jersey is a leader in internet gambling. -#1

Do you agree the government will legalize online gambling? If yes, will traditional (land) casinos survive?

Despite the collapse in online sports betting, investors remain excited about Diamond Eagle Acquisition (ticker: DEAC), a special purpose acquisition company that has a deal to merge with internet sports betting leader DraftKings.

...

Diamond Eagle has a sizable market value of $5.8 billion based on a fully diluted share count of around 347 million shares. That is considerably above the market values of Penn National Gaming (PENN) and Eldorado Resorts (ERI) in the $1 billion to $2 billion range, as well as exceeding that of Caesars Entertainment (CZR) at about $5 billion. -#2

Source #1&#2: https://www.nasdaq.com/articles/online-gambling-is-booming-amid-the-lockdown-2020-04-20

Look at CZR valuation compared to DEAC, is this one of the signs that online gambling will replace offline? Or is it going to be dotcom bubble 2.0?
Share your thoughts guys

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[tokeweed]

What the US gov should do is exempt poker from the UIGEA like it did with fantasy sports.  It's not gambling like how putting action at roulette is.  It's a skill game.

[avikz]

Do you agree the government will legalize online gambling? If yes, will traditional (land) casinos survive?

Gambling is a big source of tax income, Just like Tobacco or Alcohol! When the economy is struggling to revive, such kind of activities will fetch much needed tax income to the governments. In light of this, there may be a possibility to make online casinos legal. But that is not necessarily a threat to the conventional casinos because conventional casinos depend more on tourists rather than the local crowd. Conventional casinos are all about experience while online casinos are much needed mental relaxation. Both belong to very different league!

Look at CZR valuation compared to DEAC, is this one of the signs that online gambling will replace offline? Or is it going to be dotcom bubble 2.0?
Share your thoughts guys Smiley

In continuation to my above comment - there will be no replacement. We don't really know when the lockdown will be over so people will be finding ways to gamble while sitting at the comfort of their home. Offline casinos will be back to the business once the global tourism industries are back on track. Both will remain as it is for different segments of customers.

[DarkDays]

I really don't think that the government is concerned with casinos right now, especially online ones.

By keeping casinos as brick and mortar, they enter that the money stays within a closed circle. Enabling online casinos can easily lead to more money leaving the country than entering it, which is not great for GDP or development.

The brick and mortar casinos have a monopoly right now, and they're likely to keep that monopoly since they have already sponsored the government.

[Pmalek]

I thought that online gambling was legal in the US, and that it's only illegal for US citizens to gamble overseas, or on a platform in another state. 
The government misses their regular tax income and are trying to supplement it with whatever is possible. Gambling is just one of those things. They might want to take another look at legalizing marijuana as well.

[Ryker1]

Well, the gambling online business industry as of now were ongoing to the process of legalizing. And this regulation will be expected on a state to state basis. Perhaps there will be an effect on the offline casino, --as of now but when the economic crisis will be recovered and all land-based gambling businesses will back again for sure it will back to normal that people gamble on casino live. Indeed, we can't deny the fact that during this pandemic lockdown online gambling has contributed to the growth of financial revenues into a local economy.

[Chrystora123]

I really don't think that the government is concerned with casinos right now, especially online ones.

Why not!! it is no longer a secret that offline casino is one of the biggest tax providers and if the offline casino is closed, where does the government get the tax from??  whereas in a crisis like this the government really needs tax money (to face the bad possibility of this Pandemic).  I am very confident that the attention of the government (for tax payments) in the midst of the current "pandemic" crisis, is being directed to an online business..

[tomahawk9]

Do you agree the government will legalize online gambling?

The plegalization of online gambling (especifically online casinos) will always encounter a lof of obstacles since many people expect a disruption (money-wise) in the physical casinos ecosystem once online casinos are given the green light. Remember that we're talking about an industry which hit over 40 billion dollars in revenue in the USA two years ago. A lot of people would want that number to remain the same or go even higher, and nationwide legalization of online casinos could definitely take those numbers down.

If yes, will traditional (land) casinos survive?

I believe they will. Like I said above, it's a big industry moving tons of money. If online gambling were to be approved in the US, I believe land-based casinos will not dissapear but revenue would take a major hit.

Now, i'm more interested in online sports & esports betting. Over the past year, a lot of states have already legalized online sports betting^[1]. Authorities in Nevada approved CSGO betting^[2] (CSGO is one of the biggest esports games in the world), and a few other states could legalize Esports betting very soon^[3].

Money talks, and the eSports industry is growing every year (hell, even ESPN's starting to host esports events^[4]), and with this pandemic going on, I wouldn't be surprised to see more and more states legalizing online esports betting throughout the year.

1. https://www.techradar.com/news/in-what-states-is-online-sports-betting-legal-in-the-us
2. https://www.cbssports.com/general/news/nevada-approves-esports-league-betting-for-counter-strike-global-offensive-in-historic-ruling/
3. https://gammalaw.com/these-four-states-are-on-track-to-legalize-esports-betting/
4. https://www.espn.com/esports/story/_/id/29071026/espn-esports-valorant-invitational-how-watch-bracket-results

[milewilda]

I really don't think that the government is concerned with casinos right now, especially online ones.

Why not!! it is no longer a secret that offline casino is one of the biggest tax providers and if the offline casino is closed, where does the government get the tax from??  whereas in a crisis like this the government really needs tax money (to face the bad possibility of this Pandemic).  I am very confident that the attention of the government (for tax payments) in the midst of the current "pandemic" crisis, is being directed to an online business..

Darkdays do really have a point because if they do tend out to legalize it then theres no turning back and w know that this pandemic wont be permanent.Therefore, they wont make such step and just let online casinos do their thing as of this moment on this current market situation but well it depends on what would be their insights or decision towards it.It doesnt really that much a problem though because this one will give out more advantage or access for gamblers out there where both offline and online would be considered legal in any aspect.

[romero121]

America is the country with large number of pandemic COVID-19 suffering. It also has the largest number of deaths due to corona. Even now the country hasn't announced the complete lockdown. There are people who are into protest against the government to Stop the lockdown.

Seeing all this situation, the probabilities of legalizing online casinos with licencing won't be happening in states.

[verita1]

I agree that the impact of Covid19 will open the way for many industries and these include online casinos. As for the legalization of them, it will depend on the governmental policies of each country. Here I have found information about legal Online Casinos in the US.

Legal USA online Gambling guide

https://www.legalbettingonline.com/casino/

Regarding traditional Casinos, they should continue their activities once the Covid19 is controlled. Some many employees and businesses benefit from its activities and it is an important piece in the development of the tourism sector.

[Rengga Jati]

Regarding traditional Casinos, they should continue their activities once the Covid19 is controlled. Some many employees and businesses benefit from its activities and it is an important piece in the development of the tourism sector.

But you still didn't answer the question above, buddy.

Do you agree the government will legalize online gambling? If yes, will traditional (land) casinos survive?

What's your answer @verita1?


Well. In my opinion, traditional casinos will survive because they have already had regular visitors (gamblers). Moreover, some of them are established casinos with great popularity. So, I believe the legalization of online gambling seems to not have big impacts on them. In addition, traditional casinos have something different than online gambling. You won't see crowded people, magnificent building, and play directly on the games on online gambling.

[Jackrider123]

Online Casino Might bring more revenue cause of the availability in every place. But I still think that the traditional Casino will still gonna survive as people hesitate to invest high income online compare to traditional methods. That's my take what you think?

[harizen]

Do you agree the government will legalize online gambling?

Yes, it can be considered but with currently lots of heavy loads on government's hands now, it might not happen immediately. And besides, as long as the said online casino complies with all the requirements need to operate, nothing problem here. It's just the same as fulfilling business requirements even we aren't currently experiencing a pandemic virus scare.

In other words, not a priority to push for that given the situation we are dealing with.

If yes, will traditional (land) casinos survive?

100% yes. Online gambling just became an option but we didn't even know if those land casino players really hooked up at it or just tested it by a meantime or totally refrain from doing gambling for now.

And after the situation got back to normal, the activity in land-based casinos will surely also back again to normal.

[Shimmiry]

Look at CZR valuation compared to DEAC, is this one of the signs that online gambling will replace offline? Or is it going to be dotcom bubble 2.0?
Share your thoughts guys

If ever they legalize online casinos, the present physical casinos would be destroyed as the quarantine would take longer than expected. Online casinos are on a drastic increase as most users often intend to do online nowadays to surpass and cope with their boredom. Yet the question is, didn't the online casinos recently aren't that illegal? I've seen some applications that were using real money in their bets and even win the same. Yet, if the government would give an attention to it, it would only make online casinos and its players pay taxes with their income, in which none of us wants to happen.

[maydna]

Do you agree the government will legalize online gambling? If yes, will traditional (land) casinos survive?

I agree if the government will legalize online casino, especially in these situations. But they need to strict with who can play the online gambling games by making a law that only people who above 18 years - 20 years can play online gambling. Although that doesn't prevent young people not to playing gambling secretly, there is a law that can control the people. I am sure the traditional casino will survive because they already have big fans, especially in the city like Macau, Las Vegas. Perhaps, those people will not feel comfortable to use online gambling to playing gambling games so they can still go to that place and play with their friends.

is this one of the signs that online gambling will replace offline? Or is it going to be dotcom bubble 2.0?
Share your thoughts guys

I don't think that is the signs of online gambling will replace offline because offline gambling exists for a long time ago before the online gambling release. People like to gamble with their friends, especially in a special event in their city or country. The dotcom is already happened for a few years ago, especially when the internet is available in many countries.

[mu_enrico]

What the US gov should do is exempt poker from the UIGEA like it did with fantasy sports.

That would be nice, but sadly the name "poker" is strongly perceived as gambling.

By keeping casinos as brick and mortar, they enter that the money stays within a closed circle. Enabling online casinos can easily lead to more money leaving the country than entering it, which is not great for GDP or development.

I think they won't legalize offshore providers; it will be a waste of tax opportunities.

I thought that online gambling was legal in the US, and that it's only illegal for US citizens to gamble overseas, or on a platform in another state.

It's based on the state.

Only a small number of states allow online casino-type gambling including New Jersey, Pennsylvania, and Nevada. More than 15 states permit online sports gambling, with an even greater number allowing sports betting at physical casinos.

Source

Now, i'm more interested in online sports & esports betting. Over the past year, a lot of states have already legalized online sports betting^[1]. Authorities in Nevada approved CSGO betting^[2] (CSGO is one of the biggest esports games in the world), and a few other states could legalize Esports betting very soon^[3].

Money talks, and the eSports industry is growing every year (hell, even ESPN's starting to host esports events^[4]), and with this pandemic going on, I wouldn't be surprised to see more and more states legalizing online esports betting throughout the year.

Correct, I believe that's also the reason for DraftKings acquisition. It looks like for online entertainment, sports betting and fantasy sports are predicted to grow in the coming years!

- Land casinos get struck so hard;
- After social distancing over, the recession would still exist. It puts more pressure on land casinos;
- Even if states legalized online casinos, Millenials seem to prefer sports betting and fantasy sports.

[carlisle1]

Do you agree the government will legalize online gambling? If yes, will traditional (land) casinos survive?

Maybe Government will consider this for a moment because of this lockdown and i believe that those applicants for gambling sites are also owner of Real casinos that was just coping with the system as they are closed operation now.

and also the Government will make a agreement that this is just for the time being and will make another decision after the pandemic effect.

but in anyways?this is a Big blow for crypto world because for sure this is one of the beneficiaries of this Laws.

[Fundamentals Of]

It could but it will not be happening in the middle of this crisis. There will probably be a more focused study on it after this crisis, especially when the businesses of land casinos will not be able to recover fully after the new normal will unfold itself. As of now, that might be one of the least priority but it will bring a more serious attention of policy makers later on when initiatives such as physical distancing and avoidance of crowded places will become more of a personal choice that could severely affect the business operations of land casinos.

[Reid]

Do you agree the government will legalize online gambling? If yes, will traditional (land) casinos survive?

Covid aside, they might.
It's still money and I bet they are looking at the growth in profit of online gambling sites by now.
Regarding the traditional casinos, I don't think it will be forgotten.
There is still that difference in fun and excitement when you are in front of the game with your physical body.
That's for me. I don't know about the others. Perhaps, they should make a survey.  

Look at CZR valuation compared to DEAC, is this one of the signs that online gambling will replace offline? Or is it going to be dotcom bubble 2.0?
Share your thoughts guys

Replaced maybe such a harsh word for it.
More like upgraded. But the offline gambling is still something that could not be changed since its different when you meet people.