Wynn Resorts’ CEO Comments on the Impact of Online Casinos
Wynn Resorts CEO Craig Billings recently commented on the ongoing debate surrounding the potential impact of online casinos on their traditional counterparts.
Describing the conversation as “reductive,” Billings provided a nuanced perspective on the complexities involved.
Concerning the overall impact of online casinos on the TAM (total addressable market) for land-based establishments, Billings underscored the influx of new competitors into traditionally steady gaming regions. He advised against presuming a consistent effect on all local casinos, emphasizing the significance of comprehending the changing landscape.
Wynn Resorts’ Neutral Stance on iGaming
Wynn Resorts maintains a neutral stance on iGaming and online sports wagering, having abstained from active involvement in these areas. According to Billings, the company places a strong emphasis on its commitment to luxury resorts.
Billings expressed concerns about the introduction of online casinos, suggesting that it opens the door to numerous new and capable competitors. He highlighted the potential impact on states that have historically maintained a stable competitive dynamic for many years.
Regardless of one’s position in the cannibalization versus no cannibalization debate, Billings advises against assuming a uniform impact on all regional casinos. He deems it “pretty naïve” to make such assumptions.
Market Share Dynamics and Implications for Operators
While online casinos represent a long-term growth frontier, Billings noted that, as of today, they are only permitted in seven states. In contrast, there are about one thousand tribal and commercial casinos across the US, with only a fraction adopting an omnichannel strategy.
Billings highlighted the potential for market share shifts within the gaming industry, particularly among properties owned by large national gaming operators. He stressed the importance of recognizing diverse implications for different market segments, cautioning against overlooking nuanced dynamics.
He mentioned that major national gaming operators own properties that could potentially compete with digital-native online gaming providers. In the broader landscape, market share is expected to shift, leading to winners and losers in the land-based gaming sector. From an operator’s perspective, the total addressable market (TAM) doesn’t pay the bills; what matters is their share of it.
Labor Implications and Union Perspectives
Billings also addressed labour implications associated with online gaming, emphasizing the potential impact on gaming-related unions. He noted that unions may take pre-emptive action in states where online wagering is contentious. He further urges stakeholders to consider broader implications beyond the immediate debate.
“Don’t expect the unions, particularly in blue states, to just sit back and let online casino happen.” He says, “They will take a position because that’s their job, and, like it or not, in many states legislators listen to unions.”
Key Takeaways from Billings’ Comments
Wynn Resorts CEO, Craig Billings, argues the online casino debate is overly simplistic. While acknowledging online competition, Billings highlights the fragmented landscape and the potential for market share shifts within the industry. He emphasizes the need to consider the impact on various stakeholders, including labour unions, beyond just total market size.
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John Ford
✅John Ford has been an online gambling content writer for over 18 years, he is not just an aficionado; he's a maestro. Born and raised in the heart of the Short Pump, Virginia, John's journey through the casino industry began on the casino floor itself. He started as a dealer in various games, including blackjack, craps, and baccarat, cultivating an understanding that only hands-on experience can provide. John's passion for writing casino guides stems from his casino experience and his passion for helping fellow punters. His articles are more than reviews; they are narratives that guide both novices and seasoned players through the labyrinth of online casinos.
