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State of Play’s TL;DR
- Citizens Equity Research says gaming suppliers are exploring products that mimic online casino play without relying on traditional RNG.
- It could potentially create new paths in states where online casinos are still illegal.
Suppliers are exploring products that could mimic the online casino experience in states where real-money online casinos are not legal, according to Citizens Equity Research analyst Jordan Bender.
The concepts use alternative outcome sources instead of traditional random number generation.
With only eight states currently allowing online casinos, the idea is drawing attention as operators and suppliers look for new ways to grow digital gaming. The discussion also highlights why online casino expansion remains one of the industry’s most closely watched opportunities in the US.
Suppliers are testing products built around alternative outcome models
Bender said one of the more notable themes from recent industry conversations was how suppliers may be able to recreate parts of the online casino experience through products that are structured differently from standard online casino games.
“Suppliers we spoke with at the conference and in recent weeks are beginning to evaluate products that replicate the iGaming experience but rely on outcomes derived from crypto perpetuals, advance deposit wagering (ADW), historical horse racing, and historical sporting events rather than traditional random number generation.”
According to the report, these products could serve as a workaround in jurisdictions where online casinos have not yet been legalized. Bender also said perpetual futures are viewed as a potentially important long-term source of non-sports volume growth for the prediction market industry.
Bender added that historical-racing-style products and similar concepts may have broader potential even if they are not classified as traditional online casinos.
“While these products may technically fall under sports betting, we believe they highlight a potentially significant opportunity if executed correctly.”
Hard Rock example shows why the concept is getting attention
Bender pointed to historical-outcome-based gaming as an area that already has precedent in the broader gambling market. He said historical racing machines and related concepts have benefited some racetrack and regional casino operators.
One example cited in the report was Hard Rock International, which Bender estimated recently generated $1 billion in gross gaming revenue on NASCAR-themed slot machines. According to Bender, those devices use historical NASCAR results as predetermined outcomes rather than random numbers.
The report also said operators in daily fantasy sports, sports betting, and sweepstakes casinos could soon test similar concepts.
Why it matters for US online gambling
The broader backdrop is straightforward: Internet casinos generally offer higher margins than traditional sports betting, but legalization remains limited. Only eight states currently permit online casinos.
Bender said Maryland, Virginia, or Washington, D.C., could approve internet casinos next year, though the article also noted that legalization remains difficult. Until more states move, supplier interest in online casino-style alternatives could remain a key trend to watch across the US gambling market.
Based on reporting by Todd Shriber for Casino.org.
