In the digital age, where convenience is king and screens dominate our landscapes, the rise of online casinos has sparked a fiery conversation about their effects on the traditional bastions of gaming—land-based casinos. Craig Billings, the seasoned CEO of Wynn Resorts, shared his seasoned insights into this debate, calling the discourse “reductive” in a recent LinkedIn musings.
Billings, a veteran of the gaming industry with over two decades of experience and nearly eight years at the helm of Wynn, spoke from a position of measured neutrality. Wynn Resorts has shifted away from the bustling iGaming and online sports betting markets to double down on its treasured house of cards, with a solitary regional stronghold—the thriving Encore Boston Harbor.
The Wynn maestro acknowledged the profound implications that online gambling has on the existing market for their physical counterparts but insisted there’s a richer tale to be told. “With the introduction of online casinos, we’re inviting a host of new, adept players into the arena,” he penned, “and it’s naïve to assume that the effects—be they gains or losses—will be evenly distributed amongst the regional gaming outposts.”
The online gaming oasis, although ripe with long-term prospects, is only accessible in a select few states—Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. Contrast this with the vast landscape of approximately 1,000 commercial and tribal casinos woven across the American tapestry. Amidst them, only a sliver—10% to 15%—have adopted an omni-channel approach that amalgamates the realms of physical and online casinos with sports wagering.
Billings posed a critical viewpoint, “The entities who might ascend the digital throne are those under the banners of the colossal gaming syndicates. What of the rest?” He urged that market dynamics are inevitably shifting and that the spotlight on market size and tax revenues is short-sighted. “As operators, we don’t cash checks from the Total Addressable Market. It’s our share of the pie that keeps the lights on,” he expressed with candid precision.
Amidst the icy reality of numbers and market shares, Billings warmed to the human element of the discourse—employment. The stark difference in job creation between the brick-and-mortar establishments and their online siblings is a point of contention, especially in labor-conscious regions. The tale of the tape, as Billings pointed out, is stark: for each million in revenue, physical casinos might employ up to five individuals, while an online outfit would require merely a couple.
Billings closed his reflections with a cautionary note on the political clout that unions wield, and their inevitable stance in the unfolding iGaming narrative, especially in states where their color runs blue. “Do not expect the unions to idly watch the rise of online casinos,” Billings forewarned. “They will act, and legislators, whose ears are attuned to the voice of their workforce, will listen.”
As the debate surges on, the reality of an iGaming future looms. With blue states at the forefront, and potential legislation on the horizon for both Illinois and New York, the discourse is charged with possibilities and perils. Billings’ sage words serve as a guiding light through the intricate dance between the rise of the virtual and the resilience of the real, where every move has the potential to reshape the industry landscape.
