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A new group, the National Association Against iGaming (NAAiG), has formed to fight the expansion of online gaming and poker. Comprised of regional casino operators, the NAAiG cites "well-reported economic and social dangers" associated with iGaming and is urging local businesses, unions, and community groups to join their effort to protect local communities.
A new study released this week by the group claims that land-based casinos experience an average 16% revenue decline following the introduction of iGaming. This, the study argues, results in significant job losses, hundreds of millions of dollars in lost economic output, and reduced tax revenue that supports public services.
From the press release:
Critical takeaways include:
A new study released this week by the group claims that land-based casinos experience an average 16% revenue decline following the introduction of iGaming. This, the study argues, results in significant job losses, hundreds of millions of dollars in lost economic output, and reduced tax revenue that supports public services.
From the press release:
Critical takeaways include:
- Land-based casino revenue drops by 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.
- States introducing iGaming face significant economic losses, with projected job cuts reaching 4,921 in New York and 4,733 in Illinois by 2029.
- iGaming results in significant losses for states in economic output. All states analyzed would see massive GDP reductions, including Ohio ($602 million), Indiana ($428 million), Maryland ($372 million) and Colorado ($313 million).
- States' net tax gains from iGaming are limited, even before accounting for the increased social costs associated with its high rates of problem gambling and related social ills. For instance, Louisiana, Maryland and Mississippi could all see negative net tax revenue due to displaced in-person gaming dollars and related impacts on state and local economies.
- Brick-and-mortar casinos in every state would face significant revenue losses due to iGaming cannibalization. Projections reach up to $983.7 million in New York, $545.3 million in Illinois, $522.6 million in Ohio, and $342.6 million in Maryland by 2029.
- The introduction of iGaming reduces in-person casino employment, with an estimated 2,818 jobs lost in Ohio, 2,642 in Louisiana and 1,906 in Mississippi.
- The job losses caused by iGaming will result in massive reductions each year in employee wages and related taxes for states. Annual labor income losses would reach nearly $110 million in Colorado and Maryland, $204 million in Ohio, nearly $300 million in Illinois, and nearly $450 million in New York.
- States with iGaming experience an 8.3% decline in distributed gaming revenue, impacting taverns and small gaming establishments.
- Projected U.S. gambling losses from iGaming are expected to surpass $1 trillion by 2028, straining local economies and public health resources.
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