US Casino Industry Divided Over Online Gambling Expansion

The US casino industry is seeing a growing divide between companies that embrace online gambling and those that are resisting it, with many of the holdouts focusing on international markets. This split is becoming increasingly apparent within the country, where the regulatory landscape for online casinos varies dramatically from state to state. As these companies push forward with their strategies, the divide between them may soon become evident to US residents, who could see very different approaches depending on the state they’re in.

Las Vegas Sands Corporation and Wynn Resorts are among the companies that have been slow to embrace online gambling, instead focusing on physical properties. These companies are looking to carve out strongholds in regions where online casinos are unlikely to be regulated in the near future. By investing heavily in land-based casinos in these areas, they are essentially creating firewalls that could stall the expansion of online gaming. Meanwhile, online gambling operators, and those with strong online brands, are targeting regions where online casinos are more likely to be regulated.

Wynn Resorts is a prime example of this strategy. The company recently received approval to build the first-ever casino in the United Arab Emirates, where gambling has been historically restricted. This move underscores Wynn’s desire to dominate a specific geographical region, a strategy they are also pursuing in the United States. Wynn’s online gambling footprint has been shrinking since late 2023, as it pulled back from markets like Michigan, Pennsylvania, and West Virginia. Instead, Wynn prefers to operate in states where they already have brick-and-mortar properties, leveraging those locations to drive online traffic.

Similarly, the Cordish Companies have taken a similar stance, prioritizing physical casinos over expanding into online gambling. Rob Norton, president of Cordish Gaming Group, has made it clear that the company does not support the expansion of online casinos, believing that in-person gaming is the best path forward. This viewpoint has influenced Cordish’s investments, as they focus on building physical properties in regions where online gambling is not yet legalized.

In contrast, states like Illinois represent a different direction for the gambling industry. Illinois has a more open approach to gaming, with several brick-and-mortar casinos, online sports betting, and legal online lottery sales. Despite this, the state has yet to regulate online casinos, largely due to the influence of the video lottery terminal (VLT) industry. Companies like DraftKings and FanDuel, which already operate online sportsbooks in Illinois, are eager to expand into online casinos. Their push for regulation could face resistance from land-based casino operators like Sands and Wynn, who see online gambling as a threat to their business model.

Texas is another state where the divide between land-based operators and online gambling advocates is becoming apparent. Sands and the Adelson family, who have a majority stake in the Dallas Mavericks NBA franchise, have been active in pushing for land-based casinos in Texas. However, they have been less vocal about legalizing online casinos. The influence of Sands and Wynn in Texas could mean that the state remains a stronghold for land-based gaming, leaving online operators to focus on other markets where online gambling is more likely to be legalized.

Companies like Wynn and Sands are focusing on land-based properties, creating firewalls that could stall the expansion of online gaming, while online operators are targeting states where online casinos are more likely to be regulated.

Conclusions

This growing divide within the US casino industry could lead to a patchwork of gaming regulations across the country. Some states may continue to embrace physical casinos, while others could become more open to online gambling. Ultimately, the strategies pursued by companies like Wynn, Sands, and Cordish will shape the future of gaming in the United States, with their approach to online gambling and land-based properties creating contrasting regulatory landscapes across the nation.