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State legislatures have not had much luck passing online casino bills recently, but Bally’s Chairman Soo Kim has an idea he thinks will help in 2025 and beyond. He proposes taking an incremental approach to legalizing online casinos in states like New York and Illinois, starting with live dealer table games and nothing else.
These live-streamed games with human dealers have often been presented as the job-producing incentive for regulating full-scale iGaming. However, Kim believes lawmakers might have an easier time getting behind legislation that focuses on the live dealer games exclusively.
“Why not just live dealers? I actually think live dealer can be an interesting solution in a lot of places,” Kim said. “It’s like a half step. We don’t have to do iSlots yet because, with iSlots, there’s a lot of people fighting over it. That’s why I’m like, ‘Hey guys, instead of fighting over iSlots, why don’t we try to get live dealer?’ I bet you there will be very little resistance.”
Industry sources who spoke with PlayUSA anonymously indicated that an industry pivot to focus on live dealers is possible in some states in 2025. However, any change in approach likely wouldn’t happen until late in a session if full iGaming efforts have hit a roadblock once again.
What are online casino live dealers?
Live dealer online casino games replicate the experience of brick-and-mortar casinos. They allow people to see and interact with real dealers while playing games such as blackjack, craps and roulette.
Instead of decided by a random number generator, the action plays out live with a deal of the cards, roll of the dice or spin of the wheel as if at a gaming table in Las Vegas.
Most of the major online operators offer live dealers in the seven states with legal online casino:
- Connecticut
- Delaware
- Michigan
- New Jersey
- Pennsylvania
- Rhode Island
- West Virginia
Evolution Gaming and Playtech lead the way in providing live dealer content to operators. Live dealer games can broadcast from a dedicated studio or from inside a land-based casino.
Bally’s has a monopoly on gaming in Rhode Island through two casino properties and online app Bally Casino. The state only allows online table games through live dealers, which take place at Bally Casino Twin River Lincoln.
“In Rhode Island, the regulators felt really good about live dealer. They liked that we’re still employing people in the state and it had fewer constitutional questions.”
Bally’s Chairman Soo Kim
Why live dealer-only focus could draw less opposition
Legislators tend to like bills that increase revenue for their state while creating jobs.
Online casino has the revenue part covered, but online gaming generally isn’t a job producer in states.
That’s where live dealers became an important part of online casino advocacy efforts. Casinos can host the action, producing jobs for casino workers.
Live dealers were a big part of the pitch for online casino in New York and Maryland this year. However, two casino companies and casino workers in Maryland, and a labor union in New York, argued that iGaming would cannibalize brick-and-mortar casinos. That would put more casino and hospitality jobs at risk than would be created by live dealers.
That’s where Kim thinks live dealer jobs without online slots could face less opposition to get partial iGaming going in a state. Full online casino can wait until all the stakeholders figure out how to address the issues.
“Some casinos, lottery and VGTs all fight back on iSlots,” Kim said. “But live dealer doesn’t compete against VGTs, it doesn’t compete against the lottery. And It’s less offensive to casinos because they can get a piece of it.”
Charmaine Hogan, head of regulatory affairs at Playtech, believes that starting with live dealers could help ease cannibalization concerns in some states.
“Live dealer casino is a pivotal element of the iGaming industry, offering players an immersive experience that combines the ambiance of traditional casinos with the convenience of online platforms,” Hogan said. “Introducing live dealer casino can serve as a crucial initial step towards establishing a fully regulated iGaming market. This approach must ensure a broad selection of games for players while also incorporating robust player protection measures, such as the use of behavioral analytics.”
Reasons to wait for full online casino legalization
Authorizing only the live dealer portion of online casino isn’t going to capture the large revenue figures that draw legislative attention to regulating iGaming.
“Even in states where live dealer is robust, 80% of revenue is still from slots,” said Howard Glaser, global head of government affairs for gaming supplier Light & Wonder. “State legislation ultimately will be driven by revenue.”
Without referring to a specific state, Glaser isn’t sure that a live dealer-only focus gets passed any sooner than online casino. Opponents will know it’s an attempted step toward full iGaming legalization.
“Baking half a loaf takes just as long as baking a full loaf,” Glaser said. “Passing part of gaming legislation has as many hurdles as passing a larger gaming bill.”
Glaser also pointed out that passing gaming legislation often takes all industry stakeholders working together. By limiting the bill to one aspect, it’s not going to get the full push from all stakeholders.
“A complete working gaming package is obviously preferable,” Glaser said. “It’s true that means you have to take into account many different interests. But sometimes it’s easier to pass legislation when it’s more expansive and not benefiting just a small part of the industry.”
Rather than pushing to legalize one area, Glaser thinks iGaming proponents should focus on making all stakeholders in a state comfortable with full online casino.
“Failure of iGaming to move more quickly is due to a lack of consensus within the gaming industry,” Glaser said. “We’re stuck arguing how to cut up the pie rather than grow the pie. Whether it is land-based casinos or video game operators, I think there’s a potential solution that works for all parties.”
However, Glaser doesn’t dismiss a piecemeal approach.
“Different states require different approaches. Any step forward would be helpful at this point.”
Illinois legislator thinks live dealers focus could work
Illinois differs from most states when it comes to considering iGaming because the state chose to embrace and regulate the skill-game market.
Restaurants, bars and truck stops in Illinois can have up to six slot machines. Video gaming terminals (VGTs) have become the biggest gaming revenue generator in the state. They are producing about $800 million annually in state and local tax revenue.
When it comes to online casino legislation, VGT operators argue that it will not only cannibalize revenue they are generating for the state, but hurt the small businesses that have relied on their revenue to survive coming out of the pandemic.
However, live dealer table games don’t compare to the slot machines at local Illinois businesses.
Following this year’s legislative session, when his online casino bill received no interest, Illinois Rep. Edgar Gonzalez discussed with PlayUSA ways Illinois online casino efforts may move forward.
“Table games I think are easier to sell to legislators than slots,” Gonzalez said. “Because of the reticence of some VGT folks when we look at iGaming as a whole, maybe we legalize blackjack and poker on the phone and see how that goes. And if those live dealers were union, it could be easier to sell to folks and might get allies from labor behind it. We’re looking at ways to make it happen.”
Live dealers could get iGaming started in New York
New York Sen. Joe Addabbo tried to use live dealers and a $25 million job-protecting fund to gain support from the influential Hotel and Gaming Trades Council (HTC) in 2024.
HTC Political Director Bhav Tibrewal told PlayUSA earlier this year that the union didn’t want to discuss iGaming during the downstate casino process. The New York Gaming Facility Location Board doesn’t even require submission of bids until June 27, 2025.
Unless Gov. Kathy Hochul includes online casino in the executive budget proposal in January, it seems unlikely New York will legalize full online casino next year. In that case, Kim thinks the industry should consider pitching the job-creating live dealers to the HTC as standalone legislation.
“Could live dealer play in New York? 100%. Rhode Island is all union. That’s how I know that it works.”
Kim
Addabbo told PlayUSA that he is open to any way to get iGaming started in New York. However, he can’t make that offer when union representatives refuse to negotiate with him.
“Live dealers or not, the HTC union is still opposed,” Addabbo said. “I’d consider any proposal, but there would have to be a conversation first and we can’t even get that.”
Kim concluded his pitch for a live dealer-first approach to cracking the online casino resistance in some states:
“Sports betting was the fastest expansion of gaming in American history because it didn’t catch a lot of resistance. I think watching a webcam of a blackjack dealer, people are going to be like, ‘Yeah, I’m all right with that. That doesn’t feel like anything different than what’s happening already.’”
