NIGA Tradeshow: The pandemic has changed the future of gaming

July 21, 2021 3:48 PM
  • Buddy Frank, CDC Gaming Reports
July 21, 2021 3:48 PM
  • Buddy Frank, CDC Gaming Reports

The panel on “The Future of Gambling: A Conversation with The Innovators” quickly turned to the central theme of the entire NIGA Conference: the pandemic.

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Each of the panelists talked about the challenges, and the opportunities, the COVID-19 crisis has presented. Gaming Hall of Famer Joe Kaminkow emphasized the point when he asked the packed room, “Who here hasn’t been on Zoom?” Not a single hand went up. His point, and that of the other panelists, was that we now embrace new technologies and all have bigger and better screens, faster internet connections, and an openness to try things that didn’t exist before the shutdowns due to the coronavirus.

Likewise, Rodney Butler, the Chairman of the Mashantucket Pequot Tribal Nation that operates Foxwoods Casino, said, “Unfortunately it sometimes takes a crisis to change things.” He was referring to the quicker adoption of online gaming that has made great advances during the last 12 months. He also said that their social platforms at Foxwoods, which had been in development for some time, took off. “We originally worked the social side just as a placeholder. We had minimal expectations, but today we make a significant amount of money off our social games.”

Online sports betting was a hot topic before the shutdowns, but really boomed during the crisis. Vic Palermo, president of USBookmaking, echoed many of the panelists saying, “It was an experience I don’t ever want to go through again, but it taught us some things. Of course, all sports shutting down led to a major downturn in the sports betting business. But now the segment has rebounded to record levels.” Palermo mentioned his surprised that so many new players, especially those from Europe, joined the industry. He added that they have also grown the market. He did bemoan the fact that despite many new opportunities, the regulations are changing almost daily. He noted that one unfortunate result with legalization has been the shrinking margins. He said, “Some jurisdictions are asking for fifty percent of our profits. That really hurts, when we were working on just five percent margins before the taxes.”

On the other end of the spectrum, Kaminkow, who works with Aristocrat in the casino world and has a similar CIO role with social giant Zynga, said they were shocked with the surge in interest during the pandemic. Their online game “Hit It Rich” saw record volumes. “We used to see peaks at lunch and after work, but now we were seeing millions of players online all day and night long.”

Three times during the session, Butler repeated, “If you’re a casino operator and don’t have a social casino, do it!” He said it has always been important, but is critical now in the post-pandemic world. He added, “There are so many more opportunities today with room for growth and so far, the apps haven’t caught up.” He envisioned a time soon when online casinos will be commonplace across the country. Perhaps surprisingly, he said they grew their casino database during the pandemic.

Butler also said digital wallets, which players can use online or in a brick-and-mortar casino, will be an important component of that future success.

Kamikow said that with developing 5G technology, customers will be able to add new games to their phones at the snap of the fingers. Literally. He said it is coming soon and the mobile phone will be at the center of that revolution. “It will require a new level of engagement with your players, including instant messaging and email blasts.” He noted that casinos and mobile will share lots of players, but they all have different expectations that we need to meet.”