Via Charles Simon on Twitter
Charles Simon
@cannonshell
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E. As igaming becomes more prevalent, existing casinos will lose market share meaning that the source of a great deal of the industry funding (including the tracks bottom lines) will be diminishing. Sports betting is the greatest example of how the internet will squash most bricks and mortar operations. In NJ when online sports wagering was passed, the next year 94% of wagers were placed somewhere other than a physical Sportsbook location. If online slots (which in most places will assuredly be free of any racing obligations) take just 50% of the bricks and mortars business, it would be a disaster. We have already seen purse $ lowered in PA due to competition.
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The tracks better start thinking about this because the current (imo unsustainable casino model) may be closer to the bubble getting pricked than I thought. I was thinking in terms of politicians and the public eventually asking why the F are we shifting money from an economically viable business to a terrible one, but there's another risk on the horizon.
