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COVID Reshuffles Commercial Gaming Landscape in 2020

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AGA’s Annual State of the States Report Highlights State, National Impacts

The COVID-19 pandemic had a significant impact on the gaming industry in 2020, causing a 31 percent drop in commercial gaming revenue and a significant shakeup in the top 20 casino markets. While the pandemic overwhelmed traditional gaming sectors, the industry experienced monumental growth in emerging verticals like sports betting and iGaming. All of last year’s shifts in the commercial gaming landscape at both the state and national levels are covered in detail in American Gaming Association’s (AGA) State of the States 2021: The AGA Survey of the Commercial Casino Industry.

Highlights from the report include:

  • 2020 marked the industry’s lowest total annual revenue since 2003, with consumer spending on commercial gaming falling to $29.98 billion, down 31 percent from 2019.
  • All 25 states with physical commercial casino gaming reported lower revenue than in 2019.
  • Americans legally wagered $21.5 billion on sports, compared to $13 billion in 2019. Revenue from legal sports betting operations increased 69 percent to $1.5 billion.
  • The Baltimore-Washington, D.C. gaming market is now the third largest in the country, surpassing Chicagoland and trailing only the Las Vegas Strip and Atlantic City. The Gulf Coast, St. Louis and Shreveport/Bossier City markets all jumped several spots in the top 20 rankings.

“The gaming industry faced enormous challenges in 2020 – and we also saw significant changes, as player demographics shifted and emerging verticals saw strong growth,” said AGA President and CEO Bill Miller. “From sharp revenue declines, to booming legal sports betting activity and overwhelming voter enthusiasm behind gaming, this year’s report reflects both the highs and lows of the past year.”

During the first two months of 2020, U.S. commercial gaming revenue was up 11.4 percent compared to the same time in 2019. However, due to mandated casino closures and capacity restrictions, revenue fell significantly for the remaining 10 months of the year, beginning in March when all U.S. casinos shuttered due to the COVID-19 pandemic.

Collectively, America’s commercial casinos lost more than 45,600 business days due to pandemic-related closures last year, meaning they were closed for approximately 27 percent of the year on average.

By the end of the year, 19 states plus the District of Columbia had active legal sports betting markets. Despite land-based casino closures and the suspension of major sporting events in the spring, sports betting saw significant growth, with Americans legally wagering more than $21.5 billion on sports last year.

In a survey conducted in April 2020, AGA member company executives, including commercial and tribal operator and supplier CEOs and CFOs, estimated a revenue decline of slightly more than 40 percent in 2020 and a timetable for recovery of up to two years. Q1 2021’s commercial gaming revenue numbers tied for the highest-grossing quarterly total ever, suggesting a quicker recovery than anticipated.

“The first quarter of 2021 clearly shows that consumer interest in gaming never waned, despite the challenges of 2020,” said Miller. “This momentum is a direct result of our industry’s ability to provide safe environments for our employees and guests to return to and is a strong indicator that our recovery is on the horizon.”

 

About the Report

AGA’s annual State of the States report details the commercial gaming industry’s financial performance, including analyses of each of the 29 states and the District of Columbia that had commercial gaming operations in 2020. The report, developed with VIXIO GamblingCompliance, also provides a breakdown of the legality of types of gaming and number of casinos by state, summarizes major gaming policy discussions and previews opportunities and challenges for the industry. The companion State of Play map provides the report findings in an easy-to-use, interactive tool.

Background

  • State of the States is a reference guide focusing on the commercial casino sector. Tribal casinos are subject to different reporting requirements and timelines and revenue figures for 2020 were not available at the time of this report’s publication
  • COVID-related restrictions on casino capacity and amenities vary on a state and local level. AGA’s COVID-19 casino tracker is tracking casino capacity restrictions on a state-by-state basis.
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BetVictor

BetVictor Canada launches Tracy McGrady Safer Gambling campaign

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BetVictor Canada has launched its new out-of-home advertising campaign across the streets of Toronto to promote NBA legend Tracy McGrady as its Safer Gambling Ambassador.

Two mobile digital trucks strategically targeting high-traffic areas near Scotiabank Arena, Rogers Centre, and major sporting events will provide prime audience exposure for the campaign, scheduled around Toronto Maple Leafs, Toronto Raptors, and Toronto Blue Jays home games.

To further enhance the campaign’s reach, BetVictor Canada has partnered with Clear Media Group to leverage digital taxi tops across Toronto, providing city-wide exposure with 100 taxis displaying key brand messaging. These digital taxi tops will run during peak evening hours (5:00pm – 9:00pm) on select dates until April 5th, 2025.

The campaign coincides with Problem Gambling Awareness Month, a nationwide grassroots campaign held each March that seeks to increase public awareness of problem gambling and promote prevention, treatment, and recovery services.

BetVictor Canada offers an array of tools and services to help its Canadian customers bet and play safely and responsibly, across a host of sports betting markets and online casino games.

Mark Harper, Head of Emerging Markets at BV Group, said: BetVictor is delighted to be participating in the National Council of Problem Gambling campaign in March, to help increase public awareness of problem gambling and the need to promote prevention, treatment and recovery services.

“In using our Safer Gambling Ambassador, Tracy McGrady, to raise awareness about BetVictor’s safer gambling tools such as loss limits, time alerts and product restrictions we are dedicated to ensuring all players have a safe gambling experience. #PGAM2025.”

The post BetVictor Canada launches Tracy McGrady Safer Gambling campaign appeared first on Gaming and Gambling Industry in the Americas.

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AGCO

AGCO issues $110,000 in penalties to BetMGM Canada for offering cash to induce new gambling customers

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The Alcohol and Gaming Commission of Ontario (AGCO) has served BetMGM Canada Inc. with an Order of Monetary Penalty (OMP) of $110,000 for violations of the Registrar’s Standards for Internet Gaming.

In two separate incidents in 2024, BetMGM engaged marketing companies who offered cash to members of the public in return for opening new BetMGM accounts. The marketing activities occurred in public forums, such as a major national trade conference. Under AGCO’s Standards, operators are responsible for the conduct of their third-party suppliers who are contracted to support the operator’s Ontario gaming business, and must require their third-parties to meet Ontario laws, regulations and standards (Standard 1.19).

Ontario is one of the first jurisdictions in the world to establish and enforce rules that strictly limit high-risk inducement advertising and marketing in the online gambling industry. Registered iGaming operators are prohibited from offering gambling inducements, bonuses and credits as part of their broad public advertising and marketing activities (Standard 2.05). These Standards exist to protect Ontarians from predatory advertising and promotional marketing practices in order to limit the risk of gambling-related harm.

A registered operator served with an OMP by the AGCO has the right to appeal the Registrar’s decision to the Licence Appeal Tribunal (LAT), which is an adjudicative tribunal independent of the AGCO and part of Tribunals Ontario.

QUOTE

“Responsible gambling safeguards and the protection of Ontarians on registered gaming sites is among our key priorities. The AGCO monitors the activities of all registered operators and their third-party suppliers to ensure they are meeting our high standards and we continue to take strong action to ensure they operate within the public interest.”

Dr. Karin Schnarr, Chief Executive Officer and Registrar – AGCO

ADDITIONAL INFORMATION

BetMGM Canada Inc. failed to comply with the Registrar’s Standards for Internet Gaming. Specifically, the licensee failed to comply with the following provisions of the Standards:

  • 1.19 Operators are responsible for the actions of third parties with whom they contract for the provision of any aspect of the Operator’s business related to gaming in Ontario and must require the third party to conduct themselves in so far as they carry out activities on behalf of the operator as if they were bound by the same laws, regulations, and standards.
  • 2.05 Advertising and marketing materials that communicate gambling inducements, bonuses and credits are prohibited, except on an operator’s gaming site and through direct advertising and marketing, after receiving active player consent.

Contrary to the Standards, BetMGM Canada Inc. and/or their affiliates allegedly engaged in the following activities:

a) On or about January 13 and 14, 2024, BetMGM representatives were alleged to have attended the National Franchise Show and were offering $100 in cash to new players for opening a new account and depositing $15.
b) On or about March 11, 2024, BetMGM acknowledged that its marketing affiliate “Above the Street” had engaged in prohibited inducement marketing. The conduct resulted in 377 player sign-ups and $127,180.00 in commissions to “Above the Street”.
c) On or about April 13, 2024, another BetMGM marketing affiliate “Maple Leaf Marketing” engaged in prohibited inducements and marketing to induce on-site activations and acquire new players. The conduct resulted in 94 player sign-ups and about $34,000.00 in commissions paid to “Maple Leaf Marketing”.

The post AGCO issues $110,000 in penalties to BetMGM Canada for offering cash to induce new gambling customers appeared first on Gaming and Gambling Industry in the Americas.

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BCLC

BCLC Launches “What’s played here stays here” Campaign

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BCLC’s new “What’s played here stays here” campaign is issuing an important reminder to British Columbians who choose to gamble – specifically that all net profit its operations generate stays in B.C. to help fund critical services like education, health care and community programs.

The campaign also reinforces that all other gambling websites operating in B.C. are illegal and take away funds from critical community programs and services.

“Across B.C. and Canada, we’ve seen incredible groundswell around the importance of buying and supporting local, and that’s no different for British Columbians who choose gambling for their entertainment. We want our B.C. players to know they can find a world-class gambling experience in their own backyard, whether it’s at one of our 33 casinos, 3,400 lottery retailers, or online at PlayNow.com, and that the proceeds from their play with BCLC make a positive impact at home in their community,” Pat Davis, President and CEO of BCLC, said.

Along with illegal online gambling websites, BCLC also competes with Washington State and Las Vegas casinos, all of which aggressively market to B.C. residents.

“BCLC continues to raise awareness that these gambling options do not support B.C.’s economy and take away funds from vital provincial and community-based programs and services. In a time when British Columbians are standing united, we want to reinforce that playing together with BCLC helps make B.C. even better,” Pat Davis added.

The post BCLC Launches “What’s played here stays here” Campaign appeared first on Gaming and Gambling Industry in the Americas.

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