On June 15th, Spectrum Gaming released a White Paper analyzing the relationship between land-based and online gaming. Persons interested in learning more about the findings of the White Paper can view the below presentation that Spectrum made available on its website.

The Report looks at the growth of online wagering in New Jersey which has grown from $123 million in 2014 to $213 million in 2017.   Furthermore, the Report looks at findings presented to the state of Pennsylvania by Caesars which illustrate how online wagering has helped to identify new customers who had not historically been captured by the company’s marketing database Total Rewards. 

The Report explains that developing online gaming and land-based gaming together can both create a new source of revenue and serve as a marketing tool to reach out to new players.  As online gaming grows there will be increased visits to land-based casinos.  Through online gaming, the Report says, companies can boost customer loyalty and brand recognition even when players are off-property.  Additionally, the Report states that Tropicana customers who were both online and land-based players had increased their land-based spending.  Active Golden Nugget players increased their spending at Golden Nugget by 15% after signing up for online gaming.

The Report states that there are two options for US legislators: either adapt online gaming for the benefit of land-based operators, or create an open market and allow land-based operators to compete.  Furthermore, the Report looks at several considerations for US legislators.  One consideration being that online policies will probably vary from state to state. Some factors to consider when customizing these policies are: type, size, and location of the current land-based industries.  Legislators must also consider tax rates as some states have greater online tax rates, while other states have higher land-based tax rates.  The Report says that since online operations cannot function under high tax rates many states may be forced to tax online operations at a lower rate than land-based operations.  Finally, online gaming should be viewed as part of a multi- channel gaming system. 



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