Bally's International Chairman Soo Kim stated at the ICE World Regulatory Briefing that an increase in gambling tax rates is not necessarily a bad thing. He mentioned in response to questions about competition and expansion in Europe that after most jurisdictions increase tax rates, market competition tends to decrease, which is "healthy" for the industry. Soo Kim also shared the company's "self-regulatory" investment strategy and the core value of user data to operators, providing a different perspective for industry development. Related gambling industry tax rates and compliance operation cases can be referenced on the PASA official website.
Tax Rates and Competition: High Tax Rates Filter Operators and Promote Industry Consolidation
Soo Kim's view on high tax rates breaks the common perception in the industry, with a clear core viewpoint:
Not opposed to high tax rates: "We are not advocating for a tax increase everywhere, but we certainly don't think it's a bad thing," he emphasized that high tax rates naturally filter operators, reducing market chaos;
Reasonableness of reduced competition: The higher the tax rate, the fewer operators that can survive, and the larger scale needed to compete, this "survival of the fittest" makes the market healthier;
Case evidence: Rhode Island's Bally's pays the highest taxes in the country yet monopolizes the local casino and online gaming business; whereas Nevada's tax rate is only 6.9% (the lowest in the country), leading to unlimited market competition;
Future trends: He predicts significant industry consolidation in the European market facing tax increases over the next few years.
Soo Kim also mentioned potential risks: Rising tax rates might lead some bad actors to try to pass on costs, disrupting market order, but in the long term, the market will balance itself.
Core Assets: User Data is the Most Valuable Asset for Operators
Discussing the merger with European lottery giant Intralot, Soo Kim candidly does not see companies like Allwyn as competitors, but focuses on the value of user data:
Scarcity of data: Traditional government lotteries often do not collect user data, but the core competitiveness of the next generation of operators will stem from this, "User data is the most valuable thing in business";
Direction of experience enhancement: Future platforms will incorporate consumer-oriented e-wallets or player account systems, using data insights to precisely meet user needs, "providing services wherever users appear";
Strategic differentiation: By leveraging the depth of lottery user data, Bally's hopes to differentiate itself from traditional gambling operators and enhance user stickiness.
Investment Strategy: Self-regulated Layout Reserves Opportunities for New Demands
Bally's has been actively expanding recently, acquiring troubled Australian company Star Entertainment and winning the bid for a $4 billion comprehensive resort project in New York's Bronx, with its investment logic receiving much attention:
Not believing in "priceless assets": Soo Kim believes "every asset has its price, there is no truly priceless thing," strictly controlling the purchase price during investments, never blindly following trends;
Maintaining financial flexibility: "Not putting all funds into a single project," always reserving some financial capacity to respond to new tender projects and market opportunities;
Self-discipline leads to success: This "controlled expansion" allows Bally's to continue acquisitions and mergers, maintaining initiative in industry fluctuations.
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