July 26, 2018
"INN"SIGHTS from OIGA CONFERENCE AND TRADE SHOW

The Innovation Group's Allison McCoy and Brian Wyman were in the field this week at the OIGA Conference and Trade Show in Oklahoma City. They report that this was an OIGA focused largely, though not exclusively, on legislative matters. Here's what they learned:
 
Sports Betting
Tribal operators are undeniably excited about the opportunity around sports wagering, but many are unsure about how to leverage it, wondering whether it will be worth the effort, development and square footage, especially in smaller, rural operations. There was broad opposition to the idea of integrity fees, debate over reasonable exclusivity fees, and uncertainty around risk management and the benefits of partnering. This didn't dampen the enthusiasm, however, around discussing how soon bets on the Sooners would be available.

TIG's Take: Oklahoma could represent the only opportunity in the United States to immediately offer sports wagering under a European-style retail distribution model. Our market and customer research in more than 20 U.S. states indicate that this model is the most efficient from a demand standpoint and could lead to the highest level of sports betting per capita.
 
Ball and Dice Operations
With the expansion of ball and dice gaming in Oklahoma, operators are talking a lot about operational impacts, including antes and situational awareness for surveillance and floor managers.

TIG's Take:  Optimizing the potential upside of introducing these games and related amenities should be measured as a function of incremental EBITDA that can be gained and weighed against related operational expense and capital improvements. The Innovation Group's spatial demand and casino floor analytics models can help.

State Compacts
The forthcoming opening of compacts in Oklahoma drew a lot of discussion around exclusivity fees, iGaming, Class II vs. Class III gaming, and the importance of separating any dialogue about sports or ball and dice betting from the rest of the negotiation.

TIG's Take :  We understand the sensitivity of compact negotiations and the government relations process, and are prepared to assist in the measurement of economic and tribal community impacts that could result from multiple compact scenarios.

Missed us at the show? Connect with Allison or Brian to discuss how TIG can support these and other tribal gaming business needs. 


About The Innovation Group: 

The Innovation Group has long been recognized as the world's most respected and sought-after research and advisory firm, specializing in the gaming, entertainment, hospitality and leisure industries. To date, our research and analyses have driven over $100 billion in investment decisions across more than 80 countries and six continents. The Innovation Group's accuracy and reliability is unparalleled, with our forecasts historically tracking within 5% of actual revenues across the most complex of gaming jurisdictions throughout the globe. 
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