Tom Waterhouse of Waterhouse VC has outlined the enduring competitive advantages of physical gambling venues. The analysis coincides with recent multi-billion-dollar acquisition proposals for MGM Resorts and Caesars Entertainment.
Barry Diller’s People Inc, formerly IAC, has proposed acquiring the remaining stake in MGM Resorts, assigning the company a value exceeding $18 billion. Separately, Tilman Fertitta reached an agreement to purchase Caesars Entertainment for $17.6 billion. While both transactions remain pending, the investments highlight shifting capital flows toward artificial intelligence in gaming.
Waterhouse notes that AI accelerates product development, personalization and scaling, yet land-based venues retain tangible assets that digital systems cannot easily duplicate.
Regulatory Frameworks and Market Distribution
Gambling operations depend on regulatory approvals that determine venue locations, approved products and customer access pathways. Physical casinos maintain control over licensed premises, which governments increasingly utilize to support tourism and hospitality sectors. MGM Resorts plans to open an integrated resort in Osaka around 2030, while newly licensed venues in the UAE follow a similar development model.
These restricted physical permits continue to anchor broader entertainment ecosystems.
Digital platforms have expanded reach through mobile devices, real-time player tracking and rapid content deployment. Online studios can release new titles within weeks and distribute them across multiple operators simultaneously. SPRIBE’s Aviator currently handles hundreds of thousands of bets per minute.
European online gambling revenue reached €47.9 billion in 2024, representing 39 percent of the sector’s total according to EGBA estimates. The casino segment generated €21.5 billion, roughly two and a half times the land-based equivalent. US iGaming revenue increased 27.6 percent in 2025 to $10.74 billion, while traditional casino gaming grew 2.3 percent.
Waterhouse VC identifies the integration of physical venue advantages with digital speed as the primary market opportunity.