The Global Gaming Expo (G2E): A Hub for the Future of Sports Betting
Each fall, the vibrant city of Las Vegas transforms into a bustling hub for the gaming industry as leading gambling executives, regulators, and stakeholders gather for the Global Gaming Expo (G2E). This annual event has become one of the most significant gatherings on the conference circuit, particularly since the landmark 2018 Supreme Court decision that struck down the Professional and Amateur Sports Protection Act (PASPA).
In the years following PASPA, G2E has served as a crucial platform for sportsbook CEOs to showcase innovations and discuss pressing industry issues. However, the past six years have also seen a significant focus on navigating unexpected challenges, many of which were beyond the control of industry leaders. The cancellation of G2E in 2020 due to the COVID-19 pandemic marked a pivotal moment, prompting stakeholders to reflect on the industry’s response to a crippling health crisis, soaring inflation, and labor shortages.
Federalism and Sports Betting: A Central Theme
As G2E 2024 unfolded at the Venetian Expo Center, the spotlight shifted to the evolving landscape of federalism in sports betting. The American Gaming Association (AGA) hosted the event just weeks after the introduction of Rep. Paul Tonko’s SAFE (Supporting Affordability and Fairness With Every) Bet Act. This proposed legislation aims to impose certain federal restrictions on sports betting, including a ban on television advertising and limitations on how sportsbooks can target customers through artificial intelligence.
The SAFE Bet Act raises critical questions about the federal government’s role in regulating personal responsibility in sports gambling. Discussions on safe betting practices permeated the expo, with the AGA prominently displaying statistics on responsible gambling throughout the venue.
The Implications of Federal Intervention
The Supreme Court’s decision to strike down PASPA effectively decentralized sports betting regulation, allowing states to legalize and manage their own markets. However, the SAFE Bet Act introduces a requirement for states with legal sports betting to apply to the U.S. Department of Justice, demonstrating compliance with federal standards on advertising, affordability, and the use of artificial intelligence.
Chris Cylke, senior vice president of government relations for the AGA, expressed strong opposition to the bill, stating, "The way it is structured, imposing these federal restrictions in forcing states to have to ask the Justice Department for waivers to regulate their sports betting markets is offensive enough on its own that we will oppose that bill." The AGA has consistently advocated for a focus on curbing illegal offshore sportsbooks, which, according to a 2023 study, account for nearly $64 billion in annual wagers by U.S. customers.
Protecting Vulnerable Populations
Rep. Tonko’s approach to advertising restrictions draws parallels to historical prohibitions on smoking ads, aiming to shield minors from targeted marketing tactics. Nevada Rep. Dina Titus, a close ally of Tonko, expressed her commitment to collaborating on the bill as it progresses. While the AGA remains skeptical about the SAFE Bet Act’s provisions, they are open to discussions with Tonko and other lawmakers.
In a proactive move, the AGA, alongside major operators like Bally’s, FanDuel, and BetMGM, recently introduced a framework to fund the development of the Responsible Gaming Intervention Effectiveness Scale (RG-IES). This initiative aims to enhance the effectiveness of responsible gambling messages, ensuring they resonate meaningfully with consumers. However, advocates for responsible gambling continue to push for states to allocate a higher percentage of sports betting revenues to address gambling addiction treatment.
Scandals and Accountability in Sports Betting
The conference also highlighted the darker side of sports betting, with recent scandals underscoring the need for accountability and responsible practices. A federal judge recently postponed the sentencing of Ippei Mizuhara, the former interpreter for MLB star Shohei Ohtani, who is accused of embezzling $16 million and has a documented gambling addiction. Mizuhara’s case is emblematic of a broader issue, as he reportedly wagered over $320 million in the illegal sports betting market.
Another troubling case involves Amit Patel, a former administrator for the Jacksonville Jaguars, who admitted to stealing $22 million from the team to cover his sports betting losses. Patel has since filed a lawsuit against FanDuel, alleging that the sportsbook exploited his gambling addiction to target him with promotional offers.
A Gathering of Industry Leaders
G2E 2024 attracted a who’s who of gambling executives, including Flutter Entertainment CEO Peter Jackson, DraftKings CEO Jason Robins, and FanDuel CEO Amy Howe. The event also featured a presentation from ESPN BET officials aimed at Wall Street analysts, highlighting the growing intersection of sports betting and mainstream media.
Las Vegas is positioning itself as a central player in the sports and entertainment landscape, with aspirations of landing an NBA expansion team. As the NBA season approaches, discussions are underway regarding potential bans on player prop bets involving two-way players, particularly in light of recent match-fixing allegations against former Raptors center Jontay Porter.
Strengthening Anti-Money Laundering Measures
The importance of robust anti-money laundering protocols was a recurring theme at G2E, with several panels dedicated to this critical issue. Nevada Gaming Control Board Chairman Kirk Hendrick noted that illegal sports betting has been significantly reduced due to the state’s strong regulatory framework. He emphasized that individuals involved in illicit activities often choose to wager with legal sportsbooks, highlighting the need for vigilance in monitoring these transactions.
David Rebuck, former director of the New Jersey Division of Gaming Enforcement, called for enhanced information-sharing among law enforcement, regulators, and operators to combat criminal activities in the gambling sector. He pointed out that some state regulators lack the authority to conduct criminal investigations, underscoring the need for comprehensive collaboration.
Trends and Innovations in Sports Betting
Eilers & Krejcik, a leading gaming research firm, presented insights on online gaming trends, revealing that FanDuel and DraftKings continue to dominate the U.S. sports betting market with a combined market share of 64%. The expo floor buzzed with vendors showcasing bet-builder products, reflecting the growing popularity of same-game parlays, which now account for approximately 30% of U.S. gross gaming revenue.
The Seminole Tribe’s monopoly on sports betting in Florida has propelled Hard Rock Bet into the national spotlight, capturing about 5% of the online sports betting market. As the Hard Rock Hotel & Casino Las Vegas prepares for its 2027 opening, the landscape of sports betting continues to evolve rapidly.
With the post-PASPA era seeing U.S. sports betting handle surpassing $400 billion, G2E 2024 attracted over 25,000 gambling professionals, marking an increase in attendance compared to previous years. The event featured more than 100 educational sessions and exhibitors from 117 countries, territories, and regions, showcasing the global nature of the gaming industry.
As the sports betting landscape continues to shift, G2E remains a vital forum for industry leaders to address challenges, share innovations, and shape the future of gambling in America.