A recently established group is opposing the expansion as more states consider legalizing online poker and gaming. Regional casino operators make up the National Association Against iGaming (NAAiG), which is warning about the negative social and economic effects of iGaming.
The group argues that online gambling threatens traditional casino businesses, local employment, and tax revenue. In a recent statement, NAAiG urged “other local businesses, employee unions, and community groups to mobilize in their effort to protect local communities.”
Study Predicts Economic Decline from iGaming
NAAiG recently released a study highlighting the negative impact of iGaming on land-based casinos. The report claims brick-and-mortar casinos experience a 16% revenue drop when states legalize online gambling. This decline, the group says, results in job losses, reduced economic activity, and lower tax contributions that fund public services.
The study projects that, by 2029, iGaming could lead to 4,921 job losses in New York and 4,733 in Illinois. Other states would also see significant reductions in gross domestic product, including:
- Ohio: $602 million
- Indiana: $428 million
- Maryland: $372 million
- Colorado: $313 million
NAAiG argues that tax revenue generated by iGaming fails to offset these economic losses. The group also warns of increased social costs due to higher rates of problem gambling and underage gaming.
Casino executives within NAAiG believe iGaming will severely impact the industry’s workforce. The study estimates that Ohio could lose 2,818 casino jobs, Louisiana 2,642, and Mississippi 1,906 due to reduced in-person gambling.
Mark Stewart, Executive Vice President and General Counsel of The Cordish Companies, and a NAAiG board member, emphasized the risks.
“These statistics underscore the urgent need for action,” he 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.”
While Cordish operates physical casinos, it has yet to enter the online gaming space. Stewart acknowledged that if Maryland legalized iGaming, the company would seek a license but remains opposed to its broader impact.
“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.”
Churchill Downs Incorporated and Monarch Casino are two other NAAiG members that have large holdings in land-based gambling businesses.
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