Education, education, education: Why operators must engage with lawmakers

At least one US state is expected to flick the switch on regulated egaming in 2017, breaking the three-and-a-bit-year deadlock since New Jersey opened its digital doors back in November 2013. Despite online operators posting impressive year-on-year growth in the Garden State, the likes of Pennsylvania, Massachusetts and New York continue to sit outside the circle while lawmakers mull things over.

The painfully slow progress is due to several factors, from coalitions formed to stop the spread of regulated online gambling in its tracks, to tribal infighting in California sounding the death-knell for online legislation year after year. But the biggest factor impacting progress is a general lack of education among lawmakers and decision makers.

Operators, suppliers and regulators in states already offering legal egaming are not doing enough to shout about the benefits of bringing online casino, poker, lottery and daily fantasy sports out of the shadows and into the light. There is still the misconception among most politicians that online gambling is the wild west, a lawless and dangerous land where underage play is rife and players often develop problem and addictive gambling habits.

We have all heard the argument that smartphones have the power to put a casino in the pocket of every single American, with children and those susceptible to problem play being put at even greater risk. There is plenty of evidence to refute these claims but it appears they have not been properly explained to lawmakers, who instead have the image of children staking $1,000 a time on roulette though their father’s mobile.

This means operators, suppliers and other stakeholders need to dust off their soapboxes and do a better job of talking about the success the industry has enjoyed in a short space of time. They need to spread the word that regulated egaming provides strong and robust player protection protocols, and the technology has prevented any underage play to date – and although they try their best to keep it to a minimum, the same can’t be said for retail casinos which regularly incur fines for underage gambling taking place on their premises.

The best way for the online industry to make its voice heard is to devise a clear and powerful marketing and PR strategy that targets a wide range of media – print, online, radio, TV, conferences, etc. – across all 50 states, particularly those poised to pull the trigger on egaming soon. And the focus shouldn’t just be on attracting new players, a large part should be educational messaging to help guide lawmakers through the myths and towards the cold hard facts.

This can be achieved through thought leadership pieces in industry magazines such as this one and newspapers, contributing to reports and white papers on the sector, participating in industry conferences and speaking at government meetings. Operators and suppliers are egaming authorities; they know the industry inside out, the challenges they have faced, how they have been overcome, and what other states should do to avoid some of the pitfalls they have encountered.

Their strategy needs to be well thought out, with messaging dispatched to the right media, at the right time, with the right tone of voice. If lawmakers in Pennsylvania are meeting to discuss egaming legislation, for example, an operator or supplier could take part in a thought leadership article about their experiences of working with regulators to ensure their sites are safe and secure, and only take wagers from players located in the state.

This would be supported by speaking opportunities at industry conferences in the run up to the meeting, as well as senior management being put forward for interview with local press across TV, radio and newspapers. This multi-strand strategy ensures the message gets out, and by banging the drum repeatedly, eventually lawmakers and decision makers will memorise the rhythm and bring about change.

Riding the waves

The US egaming industry has entered 2017 on a wave of optimism, but a sense of déjà vu still lingers. This time last year expectations were high for progress in Pennsylvania but momentum stalled and in the end lawmakers parked online gambling for yet another year. The industry should have struck while the iron was hot, but stakeholders lacked the understanding of the power of a cohesive and targeted marketing/PR campaign.

To avoid disappointment this time round, operators, suppliers and lawmakers need to better engage with the media and outlets that allow them to talk up the benefits of regulated online gambling, and work together to push the next state over the line. Once they do, they will undoubtedly set in motion the second wave of states getting in on the action, driving the whole industry on to the next level.

In the meantime, it’s great to see the New Jersey market really hotting up. Golden Nugget is doing a phenomenal job of driving growth through innovations such as its pioneering live dealer studio, which has seen the operator hit record online revenues in the early part of this year. The likes of Resorts Casino are also pushing the boundaries with its impressive iGaming Lounge designed to drive cross-sell between land-based and online play.

It is also encouraging to see that the mobile experience offered to players has finally caught up with European standards, and that the channel is fast becoming the dominant platform for play. Not only does this allow operators to finally offer a truly omni-channel experience to their consumers, but they can also reach out to the lucrative millennial demographic and properly engage them with their brand and product proposition for the first time.

Competition is great for any market, and it is clear that regulated online gambling in the US is on its way up. Operators and suppliers continue to strike partnerships to enter states as and when they regulate as they look to capitalise on what will undoubtedly become one of the largest egaming markets in the world once firing on all cylinders.

But just how long that takes to accomplish will come down to how effective the industry is at educating lawmakers and nay-sayers as to the benefits of legalizing and regulating the activity. It’s time to bang that drum, and get key decision makers singing the industry’s tune.