James Theodore, a leading executive search consultant in the gaming field, looks at the resourcing challenges facing a fledgling US i-gaming industry.

James Theodore

OVER the 10-year period from 1996 to 2006, the US online gambling industry grew to around 2,000 sites, generating an estimated $6bn in revenue at its peak.

A figure that was dwarfed at the time by the commercial casino industry, which generated $32bn in revenue. Even so, the bricks and mortar operators vehemently claimed that they were operating on an uneven playing field (particularly in relation to tax) compared with the online gaming companies, forcing the government to take action.

In 2006, the Unlawful Internet Gambling Enforcement Act was passed, effectively killing off the virtual casino industry. Eight years on and new laws across the US are beginning to change the rules, with lawmakers believing they remain holding all the aces.

Earlier this year it was reported that UK entrepreneur Richard Branson’s Virgin Group had teamed up with the Tropicana Resort in Atlantic City and online game maker Gamesys to bring online poker, blackjack and slots back to New Jersey. With New Jersey following the lead of Delaware and Nevada in fully legalising online gambling, it has been claimed that around 12 other states are aiming to pass legislation that will allow online gambling. And herein lies a conundrum.

As additional states gain online gaming approval and commercial casinos ramp up their activities in a bid to fend off competition, there is mounting concern in the gaming industry relating to the increasing shortage of experienced, domestic management talent required to capitalise on the opportunities that lie ahead.

With more than $4bn in global online gambling revenue (almost 15 per cent of total revenue and growing rapidly) coming from mobile technology, this requires a new set of management abilities - expertise that is in short supply.

CEOs readily accept that if they are to gain a sustainable foothold in the developing US market, they need to be acting now not only to identify the talent their organisations require but also to identify what it takes to secure these people, particularly if they are from outside the US.

Read the full article in the latest issue of iNTERGAMINGi.