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Nevada State Gaming Control Board Chairman A.G. Burnett and GLU CEO Niccolo de Masi on the future of online gambling.
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All right three states have legalized online gambling but if you don't -- New Jersey Delaware or Nevada you can't place a back seat cashing in any time soon unless.
You look up and across the pond because while the rest of the US holds its cards Europe is taking the house there are ways to make money in online gambling your bachelor now.
Joining me now is AG Burnett chairman.
-- achieving -- children.
And Nickelodeon Massey CEO of -- mobile and online gaming company AG let me start with you.
He asked a kind of all over the -- for how much online gambling which could generate three million dollars in Nevada.
Almost four million in Delaware new -- say 850 million.
Why do you think -- why is wire used so -- by comparison.
Well I think our interstate.
Or intrastate gaming.
Has only looked at the players that we've currently licensed right now.
And that is the figures are really pie in the sky based upon the State's population which -- point five million.
And then also.
Any visitors that come to Las Vegas or Reno who wish to.
Play poker but I I I think that no one really knows for sure what those numbers are I've seen estimates for the United States upwards of 400 million dollars.
What do you think about other states allowing the interstate gambling -- -- where do we stand on that we how likely is it I mean it's such a game changer.
Yeah I think all of the states that are do you have casinos -- land based gaming are probably looking at it right now.
That's just to guess we've been looking at it for over ten years and this has been a long process for -- I think of the 48 states that do have some form of gambling in -- whether it's tribal gaming or casino.
Resort style gaming they're looking at this space they're looking at this segment because as you mentioned earlier this -- something that thing going on in Europe for a long time.
Yes and speaking of that nickel I mean obviously you're invested overseas.
Is part of that because you don't have high hopes for what's gonna happen with online gambling here in the US.
Well it's a case of you know ultimately getting your your timing right and we do have high hopes for the US but obviously.
This has been going awhile in places like the UK and a couple other countries and we wanna make sure that we prove out the kinds of business -- we will ultimately.
Hopefully be able to employ a number of states if not all of the US.
You know when -- first.
Yeah what are what are your plans like ten best -- what's the time horizon like.
-- are you pursuing -- actively.
Absolutely we you know we're taking a multi pronged approach to thinking about how.
A free to play gaming companies such as glue can ultimately look to expand and and fundamentally build games that I believe.
Will have bigger what we call lifetime value per player yeah and that's the opportunity we see with real money mechanisms no matter which jurisdiction we're talking about.
AG I mean a lot of this depends signed an -- a lot of the success of the model house do with how you tax it of course I mean that's that's always true in business.
You know attacks is that he is a gambling license I know it's half million dollars.
To get a license in Nevada is that a steep barrier to entry how does that change the landscape.
Yet no we don't think it's ST period entry at all and what that is is for the resort casino that actually obtains the license.
The other entities that come in for the B two B or B two C service providers licensed don't have to pay that that -- So the only she's there have to be paid by the operators to casino resort again and then the manufacturers or distributors losers who is a little bit less.
That's it right now on -- -- remains just as it is for land based -- six and three quarters percent.
Do you think what makes sense to make that even lower to get more people into the gaming -- about at least -- say it's a bigger area you have more customers that are involved at least at first when it makes sense to make its lower.
Well we've got a significant amount of market entrants right now we've done over thirteen.
Licenses for the major operators and those of the major players so I think what we've seen.
Anyone and everyone who's going to come into the market as far as the B two beer B -- C provider and the operator.
But that doesn't speak to the poker liquidity which is based on the players themselves.
-- local would you say to people about getting involved in investing in -- space what's the best way to do it.
Well there's certainly a number of different approaches we are you know we're we're hedging a little bit because were never sure exactly the timing or what forms.
A real money gambling will be allowed in in games and what will be appropriate based on the kinds of audiences we have built.
But ultimately you know -- I do believe that Nevada's going to be leading the charge share probably.
For companies like ourselves and looking at.
More than one mechanism.
Real money experience.
Yet no that's interesting as they are problem -- as opposed to people think it's you know that it's sort of like self cannibalizing the business but it's not true it sort of feeds on itself.
Guys thanks to -- if your joining us we appreciate your time experiment -- just.
