Casino leaders form coalition to oppose iGaming, share report warning about "economic and social dangers"

A coalition of gaming and entertainment business leaders have formed the National Association Against iGaming (NAAiG), seeking to oppose "the expansion of iGaming and its well-reported economic and social dangers."

The association's leadership includes executives from The Cordish Companies, Red Rock Resorts, Monarch Casino & Resort and Churchill Downs Incorporated. According to the NAAiG, legalizing online casino cannibalizes land-based casino revenues and leads to job losses, in addition to fueling higher addiction rates.

The group has shared the results of a study by The Innovation Group, commissioned by the NAAiG, which warns that iGaming expansion could lead to significant economic declines across multiple states, challenging the notion that it is an easy revenue source.

Main findings of the report

The study revealed that land-based casino revenue drops by an average of 16% after iGaming is introduced, resulting in widespread job losses, reduced economic output, and shrinking tax revenues. 

By 2029, an estimated 4,921 jobs in New York and 4,733 in Illinois would be eliminated if iGaming is introduced. GDP losses could reach $602 million in Ohio, $428 million in Indiana, $372 million in Maryland, and $313 million in Colorado. 

Additionally, the report said that states may experience negative net tax revenue due to the displacement of in-person gaming dollars, with Louisiana, Maryland, and Mississippi among those projected to see declines. 

Brick-and-mortar casinos could also suffer massive financial losses, with revenue drops projected at $983.7 million in New York, $545.3 million in Illinois, $522.6 million in Ohio, and $342.6 million in Maryland.

The rise of iGaming is expected to cut thousands of in-person casino jobs, with 2,818 jobs lost in Ohio, 2,642 in Louisiana, and 1,906 in Mississippi, the study added. At the same time, these job losses would result in substantial reductions in wages and tax revenue, with annual labor income losses estimated at $110 million in Colorado and Maryland, $204 million in Ohio, nearly $300 million in Illinois, and nearly $450 million in New York.

Moreover, The Innovation Group's report warned that distributed gaming revenue, which benefits small businesses such as taverns and local gaming establishments, drops by 8.3% in states that introduce iGaming.

Beyond the economic impact, the study highlighted iGaming’s role in fueling problem gambling and social harm. It revealed that iGaming gamblers are eight times more likely to report compulsive gambling, with 81% of gambling addicts engaging in online gaming, making addiction harder to control. 

Underage gambling is another highlighted concern, with 26.4% of adolescents who engage in iGaming developing gambling disorders. Moreover, the study shows that areas with legalized iGaming have seen household investments decline by 14%.

The report also said projected U.S. gambling losses from iGaming could exceed $1 trillion by 2028, placing additional strain on local economies and public health resources. 

According to the report, the direct social costs of iGaming—including addiction treatment, lost productivity, and other negative consequences—could exceed $100 million annually per state.

NAAiG to oppose iGaming expansion

Mark Stewart, EVP & General Counsel of The Cordish Companies and NAAiG Board Member, called iGaming a direct threat to jobs and businesses: “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.”

“Beyond the lack of any real upside for states, iGaming puts vulnerable individuals at greater risk of problem gambling and financial instability," added Jason Gumer, NAAiG Board Member and Executive Vice President and General Counsel at Monarch Casino & Resort, Inc.

NAAiG describes itself as a national association formed "in opposition to the expansion of iGaming and its well-reported economic and social dangers." The group includes casinos, local businesses, unions, employees, and advocacy groups in a bid "to promote community-focused, sustainable gaming."

The organization’s key advocacy efforts include blocking iGaming expansion, supporting in-person casinos, strengthening regulations, and educating policymakers. 

As states consider online gaming legalization, NAAiG urges business leaders, policymakers, and communities to take action "against iGaming's unchecked expansion and associated risks."