GAMBLING AND POLITICS…
of where the future lies. For the moment, donors lining up on both sides of the debate are ‘investing’ heavily in support of their cause. Whether the issue remains at a State level or reverts to federal government is anyone’s guess. Politics aside, global online gambling is predicted
to generate in excess of $US22 billion in gross revenues over the next three to five years, and this figure does not include revenues generated by ancillary services such as geolocation, adaptive behavioural analytics, gaming software, payment solutions and others. It’s little wonder then that companies both inside and outside the single biggest untapped market are very keen to establish a presence in the US. And therein lays a conundrum. It’s one thing to
establish a presence in a juvenile market, it’s quite another to have experienced staff in sufficient numbers to capitalise on the opportunities that lie ahead. As additional states gain online gaming approval and land-based casinos ramp up their activities in a bid to fend off competition, there is mounting concern in the gaming industry that there is already a shortage of experienced, domestic management talent. That’s the situation facing both US-based companies and the foreign organisations looking to start up on their own or merge with existing land- based companies. Senior corporate executives readily accept that if they are to gain a sustainable foothold in the developing US market, they need to be acting now not only to identify the talent their organisations require but also to identify what it takes to secure these people, particularly if they are from outside the US.
least eight years behind Europe”
“The US has fallen at Land-based casinos may have a strong position in
the developing online market in the US – certainly those who are proponents of Internet gambling – but the management skills of the two are poles apart. The expertise required to effectively run an Internet casino is very different from the expertise required to operate a bricks and mortar casino. This is one of the reasons why some organisations are already looking at Europe as a source of management talent. One of the reasons that the UK and Continental
Europe are on the radar of US gambling organisations is the maturity of these markets. The US has fallen at least eight years behind Europe due to the Unlawful Internet Gambling Enforcement Act (UIGEA) that was passed in 2006, effectively killing off the American virtual casino industry. Earlier this year it was reported that the Tropicana
Resort in Atlantic City had teamed up with UK entrepreneur Sir Richard Branson’s Virgin Group and online game maker Gamesys to bring Internet poker,
blackjack and slots back to New Jersey. Canadian company Amaya Gaming Group reportedly purchased Oldford Group (headquartered in the Isle of Man), adding 85 million PokerStars and Full Tilt Poker registered players to its database and making it the world’s largest publicly traded online gaming company. Other North American companies are rumoured to be following similar collaborations with non-US firms. Yet even though US firms are in a position to offer
very lucrative packages to secure the vital management talent they require, the American market is not overly attractive to European executives. One of the overriding reasons is that the regulatory framework is not yet stabilised. This is not helped by the degree of infighting within the gaming industry. Whilst these situations continue, it will remain difficult to attract executives from overseas to join a still-fledging US online gambling industry. Another reason why US firms may struggle to
procure the required executive talent is the growing Asian market. Singapore, in particular, a relatively new entrant into the casino gaming world, has seen revenues grow from zero in 2010, to more than $8 billion in 2014.
That said, whilst politicians in the US work on the
Internet gambling regulatory issues and the industry sorts itself out, companies need to be looking now at creating a strong brand in order to gain any possible first-mover advantage when online markets do finally open up. To address this, senior executives must have a solid
understanding of the pace at which technology is evolving and the pace at which the market will expand. Creating a technological edge over competitors in the online sector is crucial. It is widely accepted that better opportunities trigger consumer spending. Therefore, disruptive technology expertise will certainly play a vital role in human capital
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