CCC’s Yeom projects $28.14M gross i-gaming revenue in ’22

Andrew Yeom

If the Legislature passes the internet gaming bill this year, the CNMI can generate as much as $28.14 million in gross gaming revenue for calendar 2022 alone, according to Commonwealth Casino Commission executive director Andrew Yeom, citing his study and market research on the subject.

Based on similar projections for succeeding calendar years 2023, 2024, and 2025, the CNMI can collect $112.56 million, $252.63 million, and $449.4 million, respectively, he said.

Yeom did a presentation on his internet gaming market research during the CCC board’s monthly meeting at the Springs Plaza in Gualo Rai last Thursday, at CCC commissioner Diego M. Songao’s request.

Yeom, who has over 14 years of online gaming executive background in South Korea, was quick to point out, though, that it’s only a projection, which means it could be wrong. “There is no guarantee that it will behave as projected,” he said.

If all works out well with internet gaming in the CNMI, Yeom said a CNMI-based online gambling site could have the potential to attract up to 2.1 million online users annually, generating roughly $450 million in gross gaming revenue starting in 2025 and beyond.

Citing data he obtained in his research, Yeom noted that New Jersey generated from online casinos over $81 million in June 2020, resulting in the state collecting $14 million in tax revenue for that month alone. He said this happened despite the complete shutdown of land-based casinos due to the COVID-19 pandemic—just like here in the CNMI

“That is a fact, not a projection,” he said.

Yeom said that in the second quarter of calendar year 2020, online casino revenues tripled from calendar year 2019, with revenues surpassing $400 million worldwide.

He said the growth in online casinos is primarily due to user demand for a digital experience, COVID-19 complications around brick and mortar casinos, and more states legalizing online gambling products.

Yeom said casino.org research indicates that of the roughly 4.2 billion people who gamble globally, 3% from the U.S. gamble online and 5% from Asia gamble online.

He said based on Statista studies on Las Vegas visitors, an estimated 40% of overall visitors are likely to gamble online.

Yeom said studies by Grand View Research predict that the U.S. online sports betting and gambling opportunity will continue to increase between $42 billion and $58 billion annually.

He said an expected 11.25% increase in Compound Annual Growth Rate will occur for i-gaming into 2025.

Yeom said the Legislature and the public can be a judge of these projections and market data to understand what internet gaming may mean for the CNMI.

He emphasized that that he and CCC are not lobbying for the passage of internet gaming bill one way or another.

Rep. Joseph Lee Pan T. Guerrero (R-Saipan) has filed House Bill 22-47 that seeks to allow senatorial districts to establish and regulate internet gaming.