As several states across the country look to legalize online gaming and poker, a new group has formed to oppose iGaming expansion.
The National Association Against iGaming (NAAiG) is made up of regional casino operators and resists “the expansion of iGaming and its well-reported economic and social dangers and urges other local businesses, employee unions and community groups to mobilize in their effort to protect local communities.”
The group released a new study this week, noting that land-based casinos see revenue drops of 16% on average after iGaming is introduced, “leading to substantial job losses, hundreds of millions of dollars in lost economic output and reduced tax contributions that fund public services.”
That view puts the group at odds with studies released from another industry group in 2024.
Details On The Study
The study also reported that states introducing iGaming face significant economic losses, with projected job cuts reaching 4,921 in New York and 4,733 in Illinois by 2029. According to the report, iGaming results in significant losses for states in economic output and that all states analyzed would see massive reductions in gross domestic product, including Ohio ($602 million), Indiana ($428 million), Maryland ($372 million) and Colorado ($313 million).
States’ net tax gains from iGaming are limited, according to the study, even before accounting for increased social costs associated with high rates of problem gambling and social ills from online gaming.
NAAiG notes that casinos in every state would face significant revenue losses due to iGaming cannibalization with reduced in-person casino employment. According to the study, that would account for an estimated 2,818 jobs lost in Ohio, 2,642 in Louisiana and 1,906 in Mississippi.
“These statistics underscore the urgent need for action,” Executive Vice President and general counsel of The Cordish Companies and NAAiG board member Mark Stewart said. “iGaming’s unchecked access to gambling on cell phones is bad public policy that threatens local jobs and businesses and will cost states. When increased social costs caused by iGaming higher rates of underage and problem gambling are considered, the net tax revenue results are uniformly negative for every state.”
Cordish is a family-owned company that operates brick-and-mortar casinos in several states, and has not yet entered the online gaming space. However, the company has acknowledged that they’d seek a license for their Live! Property in Maryland if iGaming was approved.
“We will do very well but we think Maryland won’t do very well and we know our employees won’t do very well, and that’s why we’re opposed to it.”
Other members of the NAAiG include the Monarch Casino and Churchill Downs Incorporated.
Differing Views From Industry Group
Larger companies have generally favored online gaming expansion, with major operators like Caesars Entertainment, MGM Resorts, Rush Street Interactive, Boyd, and others having major presence in the industry.
The NAAiG study sits in direct opposition to a 2024 study released by iDEA Growth (iDevelopment and Economic Association), the leading trade association for online gaming in the U.S.
That study, produced by Eilers & Krejcik Gaming (EKG), reported an average quarterly revenue boost of more than 2.4% after the introduction of iGaming across six U.S. states that currently have regulated the industry.
“This study offers compelling evidence that online gambling is a catalyst for growth, not a competitor to land-based casinos,” iDEA founder and general counsel Jeff Ifrah said. “The research underscores the conviction that legalizing it drives beneficial economic impact across the industry. As lawmakers consider the merits of legalizing and regulating iGaming, they can be assured that it will complement the land-based casinos to deliver even more tax revenues to their states and establish meaningful consumer protections.”
*Photos – Shutterstock