Gaming | KRG Hospitality

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September 5, 2024by David Klemt David Klemt No Comments

15 Years of Consulting: Lessons Learned

15 Years of Consulting: Lessons in Adaptability, Innovation, and Resilience

by Doug Radkey

Note: AI-generated image.

I made a life-altering decision to start consulting in August of 2009, and over the past 15 years I’ve accumulated more than 30,000 hours of experience.

Over the past 15 years and the span of those tens of thousands of hours, I’ve contributed to the creation of more than 270 new concepts. Further, these concepts boast a long-term success rate of over 98 percent.

Reaching these achievements, along with fifteen years in business, hasn’t been easy.

There have been many ups and many downs, just like any other business. There are times of standing high on a mountain, and times of wanting to throw in the towel.

One key element I have learned over the years is that success goes far beyond having a great vision and concept; it requires passion, precision, and execution.

This journey has been filled with pivotal moments, and by what I can boil down to as three fundamental and invaluable lessons in adaptability, innovation, and resilience. Each of those lessons are now rooted in KRG Hospitality’s core values of being creative, cultivated, and connected.

The lessons I’ve learned over the course of 15 years and more than 270 new concepts can help you and your business start, stabilize, and scale.

The Power of Adaptability

Adaptability in business refers to the ability to adjust and respond to changing circumstances, market conditions, and guest expectations. It is the capacity to pivot strategies, embrace new technologies, and innovate to stay both relevant and competitive.

For me, adaptability has meant developing a mindset of openness to change and a willingness to experiment with new approaches.

It is not just about reacting to changes as they happen but anticipating shifts in the market proactively, while preparing to meet new challenges. In business, this means being flexible in your operations, resilient in the face of adversity, and innovative in problem-solving.

An adaptable hospitality business is one that can adjust its offerings quickly, refine its services effectively, and even overhaul its business model if necessary. As importantly, such a business can accomplish all of that without any long-term disruption to its profit channel.

To embrace adaptability, you must foster a culture that values learning and continuous improvement. This involves encouraging your employees to share their ideas and feedback, experimenting with new systems, technologies and processes, and being open to constructive criticism.

It also requires a deep understanding of the market and guest needs, allowing your business to pivot swiftly and efficiently when necessary.

Adaptability is also about having a growth-based mindset. This type of mindset involves seeing challenges as opportunities for growth rather than obstacles. By being adaptable, your business can stay ahead of the competition, meet changing guest expectations, and capitalize on new opportunities.

In a world where change is the only constant, embracing adaptability is not just an option, it’s a necessity for long-term success. As entrepreneurs, cultivating this trait can lead to innovative solutions, greater efficiency, and a more sustainable long-term business model.

Embracing Innovation

Embracing innovation is about thinking creatively, challenging the status quo, and finding novel solutions to existing problems.

In this industry, innovation can manifest in various forms, such as adopting new technologies, offering unique guest experiences, or implementing sustainable practices. As an entrepreneur and leader in this industry, embracing innovation is crucial for staying relevant.

You will begin to see here how each of these lessons truly go hand in hand. For me, however, innovation goes beyond mere invention; it involves applying new concepts and ideas in practical and impactful ways.

In hospitality, innovation can be product-driven, such as developing a new menu item or room service feature. Or it can be process-driven, such as streamlining operations through a new technology integration. Innovation can also be guest-centric, focusing on enhancing the overall guest experience through personalized services or tailored offerings.

For example, the introduction of mobile check-in and digital concierge services in hotels revolutionized the guest experience, offering convenience and personalization.

Similarly, restaurants have innovated by incorporating immersive dining experiences that engage all of our senses. These innovations not only attract new guests but also differentiate a business in a crowded marketplace.

How to Embrace Innovation

To embrace innovation, your business must cultivate a culture that encourages creativity and experimentation. This involves creating an environment where employees feel empowered to suggest new ideas, and are not afraid to take risks.

Leadership plays a critical role in setting the tone for innovation, providing the necessary resources, and fostering an open-minded atmosphere.

One practical way to embrace innovation is to stay up to date about industry trends and technological advancements. Attending industry conferences and participating in webinars and mastermind groups can provide valuable insights and inspiration.

Additionally, businesses in this industry should invest in research and development (R&D) to explore new opportunities and test innovative concepts.

Finally, embracing innovation requires a willingness to adapt and iterate. Not every new idea will be successful, but the process of trying, learning, and refining is critical for continuous growth.

Your business should establish mechanisms for evaluating the effectiveness of new initiatives, and be prepared to pivot when necessary.

Fostering a culture of creativity, staying informed about trends, and actively seeking new opportunities helps your business innovate in ways that enhance the guest experience, and drive long-term financial success.

Driving Resilience

Resilience in business refers to the ability to withstand and recover from challenges, setbacks, and unexpected changes. It involves maintaining stability and continuity while adapting to new circumstances.

In further business context, this includes the ability to manage financial pressures, operational disruptions, shifts in consumer behavior, or even personal setbacks. Resilience also encompasses the mental and emotional strength to stay focused and positive in the face of adversity.

Resilient businesses are not immune to problems; rather, they are equipped to handle them effectively, and learn from the experience.

In my experience, you must be willing to prioritize building strong relationships with guests, community partners, and industry peers in order to embrace innovation. These connections provide a support network that can offer assistance, advice, and resources during tough times. Collaborations with local businesses and partnerships with suppliers can also provide you with a critical support line.

Real-World Resilience

Personal anecdotes often serve as powerful illustrations of resilience, providing real-world examples of overcoming adversity and demonstrating the strength required to persevere. Real-life examples show that resilience is not just an abstract concept but a practical quality that can be developed and applied in everyday life.

These stories often detail the emotional, mental, and physical hurdles faced, and the strategies used to overcome them.

For example, a story about recovering from a business failure can illustrate the importance of maintaining a positive mindset, and seeking new opportunities. Perhaps it is a career setback, a health challenge, or a natural disaster. Regardless, these personal stories often include reflections on the lessons learned from facing adversity.

These reflections can range from practical advice, such as the importance of planning and preparation, to emotional insights, such as the value of gratitude, and the strength found in vulnerability. Stories of resilience serve as a reminder that setbacks and challenges are a natural part of life, and that it is possible to overcome struggles with determination and support.

Lastly, building resilience also involves cultivating a positive and proactive mindset. It’s imperative to view challenges as opportunities to innovate and improve. This can mean reevaluating business models, exploring new revenue streams, or investing in your people for further training and development.

Resilient businesses are not just reactive, they are proactive in anticipating potential issues and preparing for them. By building strong relationships, learning from setbacks, and maintaining a positive outlook, your business can navigate challenges and emerge stronger.

Core Values in Action

Core values are the fundamental beliefs and guiding principles that shape the culture, decision making, and identity of your business. They are the compass that directs the actions and attitudes of everyone within your organization, from leadership to frontline employees.

In the hospitality industry, core values are particularly crucial as they also define the guest experience and set the tone for interactions with guests, employees, partners, and the community.

For entrepreneurs and leaders in this industry, developing and embracing core values is crucial for creating a cohesive and purpose-driven business. Core values not only guide strategic decisions but also inspire and motivate the team, ensuring alignment with the mission and vision.

Over the past 15 years, our journey in the industry has been guided by these three core values: Creative, Connected, and Cultivated. These values have aligned perfectly with the lessons I’ve learned and shared about being resilient, innovative, and adaptable.

Our Core Values

Creativity is at the heart of innovation. It involves thinking outside the box, challenging conventions, and finding unique solutions to problems.

In the hospitality industry, creativity is needed for differentiating a brand and providing memorable experiences. Our creative approach has allowed us to design distinctive concepts, develop engaging strategies, and craft personalized staff and guest experiences.

Embracing creativity means exploring new ideas constantly, and staying open to unconventional approaches.

Being connected refers to fostering strong relationships with guests, community partners, and industry peers. It’s about building a network of support and collaboration that extends beyond the business itself.

In times of adversity, these connections have been invaluable. Whether it’s partnering with local businesses during economic downturns or engaging with guests through personalized communication, staying connected has helped us navigate challenges and seize on potential opportunities.

Lastly, cultivation is the process of continuous growth and improvement. It involves nurturing talent, refining processes, and striving for excellence.

In our experience, being cultivated means committing to lifelong learning, and embracing a growth-based mindset. This value has driven our dedication to professional development, the quality in our deliverables, and operational efficiency.

To embrace core values, your business must integrate them into every aspect of operations. This includes staff onboarding practices, guest interactions, and strategic decision making. You and your leaders should model these values and encourage employees to do the same.

Demonstrating and reinforcing your core values consistently allows you to create a strong, unified culture that resonates with both employees and guests.

And the end of the day, you have to remember that core values provide direction, inspire action, and foster a sense of purpose.

Conclusion

As I sit back and reflect on the lessons learned from 15 years of consulting in the hospitality industry, it’s clear that the journey has been shaped by the powerful forces of adaptability, innovation, and resilience.

These experiences have not only defined our approach but have also laid the foundation for future endeavors. The hospitality landscape evolves continuously, with new challenges and plenty of opportunities on the horizon. From technological advancements to shifting guest preferences, the industry is truly poised for positive transformation.

Looking ahead, however, it’s crucial for businesses to remain flexible and open to change.

For us, continuing to embrace adaptability means staying agile in the face of uncertainty, and being ready to pivot when necessary. Innovation will continue to play a pivotal role, driving new concepts and experiences that set businesses apart.

Resilience, as always, will be the foundation that supports us through trials and tribulations, ensuring that we meet the characteristics needed to win.

I strongly encourage you to internalize these three qualities in your own journey. Whether you’re an entrepreneur, a coach or consultant, or an industry professional, integrating them into your own set of core values—be it creativity, connection, cultivation or any other set of values—will anchor you in your pursuit.

These values are not just guiding principles but also a source of strength and inspiration.

Embracing adaptability, innovation, and resilience, and staying true to our core values, has made us confident in navigating this ever-changing terrain with purpose over the next 15 years.

Who’s with us?

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August 30, 2024by David Klemt David Klemt No Comments

Game On: Datassential’s Midyear Report

Game On: Datassential’s Midyear Trends Report

by David Klemt

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The 2024 Midyear Trends Report released by Datassential earlier this month contains an intriguing revelation that savvy operators can leverage.

There is, of course, interesting and useful information throughout. After all, Datassential conducted a survey of 1,500-plus US consumers, along with 400 US foodservice operators.

Surveying nearly 2,000 people is going to garner some helpful insights.

For example, we know that many people are concerned with their nutrition. Along with that comes reading nutrition labels. However, US consumers appear to throw that behavior to the wayside when dining out.

According to Datassential’s survey results, 62 percent of consumers in the US read the nutrition labels on new items before selecting them for purchase at grocery stores. But nearly that same percentage of consumers, 58 percent, don’t consider diets or nutrition when choosing where they’re going to eat.

What that says to me is that people still viewing dining out as a treat or an occasion. Most people, when treating themselves and others, see it as an escape. An escape from the stresses of work, of life, and from eating “boring” foods.

People are still driven to leave home to gather, socialize, and have fun. And restaurants and bars still play a major role in meeting those needs and desires.

Negative and fear-mongering stories may be getting all the clicks, but Datassential’s findings are much less on the doom-and-gloom side of the equation. Per their midyear report, nearly 90 percent of US restaurant operators have seen increases in traffic (46 percent) or had their traffic remain the same (42 percent) so far this year. Just 12 percent of operators reported decreases in traffic, according to Datassential.

Game On

Now, let’s look at the data in this report that really caught my attention.

The Datassential report reveals that 61 percent of survey respondents play video games. Citing Entertainment Software Association data, close to 200 million Americans are gamers. Going further, gaming spans all ages. Last year, gamers spent well over $50 billion on this particular hobby. MarketWatch claims even combined, the global sports and movie industries don’t outperform video games financially.

Of all respondents to the Datassential survey, a quarter aren’t gamers, and 15 percent “used to” play video games. That latter group consists mainly of Gen Xers. And, hey, fair enough—some people don’t enjoy or have time for video games.

In contrast, however, 23 percent of survey respondents label themselves “avid gamers.” Gen Z, Millennials, and men make up the majority of this group of consumers.

Almost 40 percent (38%) classify themselves as “casual.” This group consists mainly of Gen X, Gen Z, and women.

Alright, so…what does this have to do with restaurant operators? Well, gamers spent $57 billion just on video games. Per Datassential, 45 percent of survey respondents have made F&B purchases after consuming video game-related ads or content. This is true of 63 percent of US Gen Z consumers, and 56 percent of US Millennials.

These stats tell me that gaming pays not just for console manufacturers and game producers, but also for F&B operators. It would seem to me, then, that operators with concepts that can leverage video games in an authentic manner should give strong consideration to doing so.

So, game on?

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March 13, 2024by David Klemt David Klemt No Comments

Good News from the AHLAF and Lightcast

Good News from the AHLAF and Lightcast

by David Klemt

A new report from Lightcast, in collaboration with the AHLAF, reveals positive news about the strength of the hotel and lodging industry.

To clarify for those new to or outside of the hotel industry, the AHLAF stands for the American Hotel and Lodging Association Foundation. Drilling down, the Foundation is the charitable branch of the AHLA.

Representing the entirety of the hotel and lodging industry in the USA, the AHLA is the largest association in the business. Through advocacy, industry resources and reports, and other initiatives, the AHLA supports B&Bs to major hotel groups.

Their charitable arm, the AHLAF, “aim[s] to support the recruitment, retention and advancement of employees throughout the industry.” The branch seeks to accomplish this goal through career development, education, scholarships, and empowerment.

In an effort to better understand the state of the hotel industry, the AHLAF commissioned Lightcast for a report. Projections from the global leader in labor market analytics show the industry in a positive light.

The full report can be accessed via a link in the press release below. However, I’ll share Lightcast’s top finding: Demand for jobs in the hotel industry should be, according to the analytics firm, in serious demand.

In fact, Lightcast finds that demand for hotel jobs will be up to 50 percent higher than the national average over the next five years. This is excellent news for the hotel industry, hotel operators, and anyone seeking a career in the hotel space.

Report: Hospitality Careers Are in Demand, Outpacing National Projected Growth

Over the next five years, demand for hotel industry jobs projected to be 50% higher than national average

WASHINGTON (March 11, 2024) – Recent research commissioned by AHLA Foundation, the charitable arm of the American Hotel and Lodging Association (AHLA), projects robust demand for hotel industry jobs over the next five years, outpacing overall market job growth.

The AHLA Foundation asked Lightcast, a leading labor market analytic firm, for data on demographic and growth trends that would help identify and map career pathways in the hotel and lodging industry. In addition to a report, the result of the research is a dynamic, interactive dashboard that allows job seekers to explore and compare roles, requirements, and compensation across a range of hospitality careers.

The hotel industry currently employs 1.8 million workers in the United States. The AHLA Foundation report projects job growth of 12% in the hotel industry over the next five years, compared to 8.0% for the nation overall. A large share of this demand is at the entry level or in roles that don’t require college degrees, validating the hotel industry’s potential as an engine for mobility. The full report is available at https://www.ahlafoundation.org/funded-research/.

“It’s an attractive time to enter the hotel industry,” said Anna Blue, President of AHLA Foundation. “A key part of our work at AHLA Foundation is supporting the recruitment, retention, and advancement of people in our industry. Understanding the entry points where careers begin, where they lead, and what paths they take is a critical step to helping find their home in hospitality.”

Lightcast used its real-time, proprietary databases and industry parsing to create the interactive dashboard for understanding career pathways in the hotel and lodging industry from 2010 – 2023. The interactive dashboard is available here.

About The AHLA Foundation

The AHLA Foundation, the charitable arm of the American Hotel & Lodging Association, works to support the hotel and lodging industry’s greatest asset – our people. By connecting employees, employers, and their communities, we seek to continuously nurture a culture of professional growth and belonging. When the people who work in our industry thrive, the industry thrives along with them. The Foundation is funded by grants and charitable contributions from generous individuals and organizations who want to support individuals seeking opportunities to thrive in the hotel and lodging industry. Learn more at www.ahlafoundation.org.

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February 7, 2024by David Klemt David Klemt No Comments

Best and Worst Cities for Servers

Service Wins and Woes: Best and Worst Cities for Servers

by David Klemt

A recent survey from gaming industry site Casinos.US identifies the 25 best and two-dozen worst cities for servers in America.

I can share two details about the methodology that Casinos.US employed.

One, they surveyed 2,000 current and former hospitality professionals. And two, they were asked to rate the overall rudeness of their guests on a scale of one to ten. One is the kindest, ten is the rudest.

Further, I can share that the average rudeness of guests being served in the US is 4.9 out of ten. Unfortunately, the three worst cities on the Casinos.US list rank between 7.0 and 7.6 on the rudeness scale. In fact, 22 of the 24 worst cities come in at 5.0 or above.

No city is perfect. The best of the best earns a score of 2.0, with the next best hitting a 3.0. Still, not bad at all.

Sadly, 45 percent of respondents reported finding themselves interacting with rude guests at least twice per day. As far as the worst of the worst, respondents identified “older adults” as the rudest, and Sunday as the day of the week with the most incidents. Do with that information as you will.

There are two sides to the coin, of course. Impressively, 24 percent of respondents “rarely” encounter rudeness from guests. Even better, 28 percent don’t expect to come across rude guests on a daily basis at work. So, there’s some hope out there.

To review the results of this survey for yourself, click here.

The Worst

Alright, let’s get it out of the way. Below, the worst cities in America for servers, according to Casinos.us.

To the right, their rudeness score. Again, the score is out of ten, with ten being the absolute worst.

Washington, DC (4.9)
Orlando, Florida (4.9)
San Antonio, Texas (5.0)
Sacramento, California (5.0)
Columbus, Ohio (5.0)
Buffalo, New York (5.0)
Houston, Texas (5.1)
St. Louis, Missouri (5.1)
Atlanta, Georgia (5.1)
Louisville, Kentucky (5.3)
Miami, Florida (5.3)
Nashville, Tennessee (5.4)
New York, New York (5.4)
Phoenix, Arizona (5.6)
Detroit, Michigan (5.7)
San Diego, California (5.8)
Las Vegas, Nevada (5.8)
New Orleans, Louisiana (5.8)
Milwaukee, Wisconsin (6.0)
Providence, Rhode Island (6.3)
Oklahoma City, Oklahoma (6.3)
Jacksonville, Florida (7.0)
Cincinnati, Ohio (7.0)
Virginia Beach, Virginia (7.6)

This list, if accurate, leaves me with one question: What’s going on, Virginia Beach? Sheesh. Calm down—your side of ranch isn’t that important, I promise.

It’s tempting to label this a tourist issue. Well over 10 million people—nearly 20 million in 2019—visit Virginia Beach annually.

And, hey, look at the rest of the list; it’s loaded with destination cities that draw millions upon millions of tourists each year.

However, when you look at the list of the best cities for servers below you’ll find more destination cities.

The Best

Now that we know the worst, let’s check out the best.

The cities below rank the lowest as far as rude behavior from guests.

Dallas, Texas (4.8)
Minneapolis, Minnesota (4.8)
Boston, Massachusetts (4.8)
Birmingham, Alabama (4.8)
Salt Lake City, Utah (4.8)
Los Angeles, California (4.7)
San Francisco, California (4.7)
Philadelphia, Pennsylvania (4.7)
Raleigh, North Carolina (4.6)
Riverside, California (4.5)
Kansas City, Missouri (4.5)
Seattle, Washington (4.5)
Charlotte, North Carolina (4.4)
Richmond, Virginia (4.3)
Cleveland, Ohio (4.3)
Indianapolis, Indiana (4.2)
Chicago, Illinois (4.1)
Denver, Colorado (4.1)
Portland, Oregon (4.0)
Tampa, Florida (3.8)
Hartford, Connecticut (3.8)
Austin, Texas (3.8)
Baltimore, Maryland (3.7)
Memphis, Tennessee (3.0)
Pittsburgh, Pennsylvania (2.0)

Philly may be the City of Brotherly Love but the Steel City, Pittsburgh, is the best for servers in terms of guest behavior. At least, according to Casinos.US.

If you live in one of the cities above, go out to bars and restaurants, and aren’t a jerk to your servers, congratulations on being a decent person.

Takeaway

Let’s say you’re an owner, operator, or leadership team member. And let’s say you operate or work in one of the cities above, whether the best or worst.

If your service team routinely on edge, regularly upset, find out why. Leaders look out for their teams and strive to provide a healthy work environment.

I’m not saying you need to get into the details of their personal lives. What I am saying is that if there are issues in the workplace, you need to get to the bottom of them. More importantly, you then need to engage the team and get their feedback.

How do they want guest issues handled by the leadership team? Are their problematic regulars who need to be “fired” to protect the team? Some guests simply aren’t worth the revenue and tips in exchange for the emotional and mental distress they’re inflicting on the team.

That is, however, something that must be discussed. Most importantly, when the feedback is taken into account and a procedure is put in place, leadership must adhere to it and act accordingly. Any deviation will result in a loss of trust, and that will decimate team morale even more quickly than an encounter with a rude guest.

Lose trust from your team, lose the business.

Image: Venti Views on Unsplash

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November 1, 2023by David Klemt David Klemt No Comments

Program for Unique Holidays: November 2023

Program for Unique Holidays: November 2023

by David Klemt

Do you want to stand out from from other restaurants and bars in your area? Change how you think about your November holiday promotions.

Several holidays are set against every date on the calendar, and this month is no exception. These holidays range from mainstream to esoteric.

Pay attention to the “weird” or unique holidays to raise eyebrows, carve out a niche for your restaurant or bar, and attract more guests. Why do what everyone else is already doing? Why program only around the same holidays as everyone else?

Of course, you shouldn’t try to celebrate every holiday, strange or otherwise. Focus on the days that are authentic to your brand; resonate with your guests; and help you grab attention on social media.

You’ll find suggestions for promotions below. However, the idea behind our monthly holiday promotions roundup is to inspire you and your team to get creative and come up with unique programming ideas.

For our October 2023 holidays list, click here.

November 3: National Jersey Day

This is an easy one. MLB, the NBA, NHL, NFL, NCAA Football… All of these and more are in regular season play at the moment.

Establish your bar as the place to watch and play fantasy sports to develop a loyal guest base. One way to really get your guests engaged is to get them to wear their jerseys, and this holiday is the “official” day for them to do so.

November 5: Zero Tasking Day

Sure, multi-tasking and the people who claim to have mastery over it are impressive. But you know what’s even more impressive? Taking the time to nothing but relax.

You know what’s an excellent place to check out, relax, and indulge? Your restaurant, bar, or nightclub.

November 6: National Nacho Day

No, nachos aren’t the world’s most unique food. However, your approach and presentation can certainly help you stand out from other operators.

Go highest. Go largest. Go most unusual ingredients. Go most premium toppings. Just go wild.

November 11: National Metal Day

Anyone who knows me knows that metal holds a special place in my life. In fact, I recently hit the Pearl Theater inside the Palms for the Dethklok + BABY METAL “BABYKLOK” tour stop in Las Vegas.

This is the day for you to encourage the metalheads among your guests to show up to your bar or restaurant. Create an LTO featuring metal spirit brands, like Slipknot Iowa Whiskey and Metallica’s Blackened Whiskey.

November 14: National Pickle Day

If your kitchen can pickle it, this is the holiday to have them create an LTO menu showing off their skills.

November 16: National Use Less Stuff Day

Sustainability and ethical business practices aren’t just trendy anymore. Many of today’s guests want to know they’re supporting businesses that have a plan to address waste.

If you’ve been developing a sustainability plan, this is the day to launch it. Look at your operations, look at your menu, and see where you can make small but impactful changes.

November 20: National Absurdity Day

Do you have an “absurd” idea for a promotion, menu item, design feature, or branding exercise? Tighten up that idea and execute it on National Absurdity Day.

You can also check out one of our KRG Concepts, Absurd! Kitchen Co., for a turn-key restaurant concept.

November 22: DrinksGiving

As operators know, the Wednesday before Thanksgiving has traditionally been the busiest bar night of the year. Whether you call it Thanksgiving Eve or DrinksGiving, this is your opportunity to pull out all the stops.

November 25: National Small Business Day

This is the perfect holiday to highlight all the small, craft, and independent F&B brands you work with at your restaurant or bar. Feature local artisans, spirits and beer producers, farmers, and more on your menu to help them and you generate more business.

November 30: National Mason Jar Day

I don’t know what it is but drinking from a mason jar, whether there’s a delicious cocktail, moonshine, or a soft drink inside it, is just a cool experience.

Of course, you can also get creative with starter, side, and dessert presentations inside mason jars.

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October 24, 2023by David Klemt David Klemt No Comments

What Does the Future Hold for iGaming?

What Does the Future Hold for iGaming?

by David Klemt

Like this, but in your pocket, basically.

With so many states legalizing sports betting, the next frontier appears to be Internet gaming or “iGaming.” So, why is it taking so long to move forward?

It seems like a no-brainer, right? Consumers are carrying the internet around with them in their pockets and on wearables. If it’s good business to meet consumers where they are, giving them the ability to place bets online makes sense.

Further, commercial gaming is worth about $60 billion in the US alone. And depending on the source and how we define the term, around 60 percent of adults in America gamble at least once per year. That number climbs to perhaps as high as 85 percent for adult Americans who gamble at least once in their lifetime.

So, those are all impressive numbers. Tens of billions of dollars, hundreds of millions of potential bettors… Intriguingly, tens of millions of Americans plan to bet on the current NFL season.

Per a 2023 Global Gaming Expo panel, iGaming generates nearly $6 billion in revenue annually. Panelists posit this form of gaming will generate $30 billion if and when casinos embrace it.

Incredibly, iGaming, in the handful of states where it’s legal, is generating similar revenue to traditional gaming. This is notable because it hasn’t taken decades to achieve.

Then, there’s sports betting. If sports betting is now legal in dozens of states throughout the country, why isn’t iGaming legal in most of the country as well? Interestingly, the answer to that question ties into sports betting.

iGaming and the current evolution of sports betting are two topics I’m just starting to really dive into. So, I’ll do my best to share what I’m learning accurately and with actionable information.

Slow Progress?

On May 14, 2018, the Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) of 1992. With PASPA gone, sports betting is legal in more than 30 states and Washington, DC.

Additionally, legislation to legalize sports betting has been introduced in more states. So, we can expect this form of betting to gain traction in more of the country.

Ironically, it’s the explosion in sports betting over the past five years contributing to the slow progress of iGaming.

Simply put, according to Howard Glaser of Light & Wonder, is that dozens of states just agreed to legalize sports betting. During the G2E panel he moderated, Glaser explained that it’s not a wise idea to now approach the same governing bodies and say, “Hey, we forgot to add iGaming when we asked you to legalize sports betting. Can you throw that in now?”

Another item to consider is the fear of casinos in cannibalizing their existing business. Other factors are responsible gaming (who’s keeping tabs on a bettor’s behavior if they’re behind a screen?) and the illegal or “invisible” iGaming market.

So, for now at least, iGaming is legal in just eight states: Connecticut, Delaware, Michigan, Nevada, New Mexico, Pennsylvania, Rhode Island, and West Virginia. However, Nevada isn’t even in the regulatory stage yet, and Rhode Island won’t launch iGaming until some time in 2024.

According to Anika Howard, the president and CEO of WONDR Nation and a guest on Glaser’s G2E panel, Connecticut is further developing iGaming regulations.

Now What?

For now, we wait and watch. Connecticut and New Jersey appear to be leading the way for iGaming in the US. However, the G2E panel notes that the US is far behind the UK when it comes to iGaming.

In fact, Howard says that when it comes to this category, the US is learning from the UK and how they approach it.

Further, the panel appears to agree that many people in the industry have their eyes on Nevada. There’s a belief that industry professionals in Nevada are taking their time so that when they launch iGaming it will be of great benefit to the state of Nevada’s overall gaming industry rather than a threat.

In other words, when Nevada goes live with iGaming, the state will likely be the country’s leader. That is, of course, speculation. After all, New Jersey legalized online casinos back in 2013.

However, the legislation that made online casinos legal in the state expires in November. I would expect there’s already a plan in place, and New Jersey may remain as the iGaming leader for some time.

For now, operators who want in on the iGaming action can plan ahead. One way to do this is to secure their iGaming domain (or domains) so that when it goes legal, they’re prepared.

It’s logical to expect more iGaming dominos to begin to fall in 2024, and for even more to topple in 2025. Are you ready?

Image: Aidan Howe on Unsplash