NCLGS Lawmakers Rebuke concerns of brick-and-mortar casino cannibalization

In Pennsylvania, lawmakers met to discuss potential model online casino legislation. Regulators in three states worked to dispel the belief that brick-and-mortar casinos would be cannibalized if online gaming continued to grow. These regulators and lawmakers met at the National Council of Legislators from Gaming States. They aimed to discuss the model online casino language that might be used in laws. David Rebuck is the former director of the New Jersey Division of Gaming Enforcement. Online gambling has been legal in the Garden State since 2013. At the NCLGS conference in PA, Rebuck had this to say about his non-concerns with online brick-and-mortar casino cannibalization.

“When you hear the fear-mongering of cannibalization and loss of jobs from internet gaming, I have 12 years of data in New Jersey showing that isn’t true,” said Rebuck. “Online gaming doesn’t cannibalize brick-and-mortar casinos and it doesn’t hurt casino jobs.”

The NCLGS still needs to create a model online casino language for state regulators to use

Multiple panels have met to discuss online gambling, but the NCLGS has not unveiled its model legislation. The NCLGS says they hope to have a draft ready for the 30-day public comment period in August. A final draft for regulators to use is expected to be ready during their winter meeting in December. One of the strongest talking points is the tax rate for this model language to be between 15% and 25%. Other issues they want to tackle are addressing cannibalization concerns, age limits, advertising guidelines, and licensing uniformity.

Since the legalization of sports betting in 2018, 40 states have some form of betting product for their residents. However, only seven states have legalized online casino betting. They include Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. Along with David Rebuck, two other regulators are working to dispel the concerns about brick-and-mortar casino cannibalization. They are Leo Copello and Helene Keeley. Copello is the iGaming compliance manager at the Pennsylvania Control Game Board. Additionally, Keeley is the director of the Delaware Lottery. Copello believes that online gambling is an additional source of revenue for regulators in states where online gaming is still not legal.