A fight over online gambling is heating up, with national casino giants facing off against regional operators in a battle that could reshape the industry. The newly formed National Association Against iGaming (NAAiG) is leading the charge, arguing that internet gambling threatens jobs, tax revenues, and local economies.
Regional Operators Warn of Economic Fallout
The NAAiG, a coalition of regional casino companies, isn’t pulling any punches. Their latest study, released this week, claims that the spread of online gambling could deal a serious blow to brick-and-mortar casinos. The research, conducted by The Innovation Group, suggests that land-based casino revenue drops by an average of 16% once states legalize iGaming.
And that’s just the beginning. The study outlines a domino effect:
- Fewer visitors mean fewer jobs. Thousands of positions could disappear as in-person casinos lose business.
- Local economies take a hit. With declining casino revenue, states risk losing hundreds of millions in tax contributions.
- Public services suffer. Money meant for education, infrastructure, and community programs could dwindle.
The group argues that online gambling doesn’t generate the tax windfall many assume. Some states could even end up with negative net tax revenue once lost jobs, reduced economic activity, and increased social costs are factored in.
Job Losses Could Hit Hard Across Multiple States
The numbers are stark. If states like New York, Illinois, and Ohio move forward with legalizing iGaming, the report predicts nearly 5,000 job cuts across multiple regions by 2029.
Estimated job losses by state:
- Ohio: 2,818 casino jobs could vanish.
- Louisiana: 2,642 positions at risk.
- Mississippi: 1,906 workers may be impacted.
The financial toll is equally severe. The study projects state GDP losses of $602 million in Ohio, $428 million in Indiana, and $372 million in Maryland—a major hit to local economies.
Casinos, especially smaller regional operators, argue they simply can’t compete with the convenience of gambling on a phone or laptop. As foot traffic declines, layoffs become inevitable.
iGaming’s Impact on State Revenues
While proponents of online gambling often highlight increased tax revenue, the study suggests the math doesn’t add up. In some states, the rise in online betting could actually cost more than it brings in.
Projected brick-and-mortar casino revenue losses by 2029:
| State | Estimated Revenue Loss |
|---|---|
| New York | $983.7 million |
| Illinois | $545.3 million |
| Ohio | $522.6 million |
| Maryland | $342.6 million |
Beyond lost tax revenue, the study points to additional financial strains. Distributed gaming revenue—money from video poker and slot machines in bars and small establishments—drops by 8.3% in states with iGaming. That could have ripple effects on small business owners who rely on these machines for income.
Social Costs and Problem Gambling Concerns
It’s not just about money. The report warns that iGaming could fuel a rise in gambling addiction, particularly among younger users. The numbers are concerning:
- 81% of gambling addicts engage in online gaming, making addiction harder to control.
- Online gamblers are 8 times more likely to report compulsive gambling issues.
- 26.4% of adolescents who engage in iGaming develop gambling disorders.
Beyond addiction, the study links iGaming to declining household investments, with families in legalized states seeing a 14% drop in financial stability.
Mark Stewart, general counsel at The Cordish Companies, one of the key players behind the NAAiG, argues that unrestricted access to gambling via smartphones is “bad public policy”. He warns that states will pay the price in lost jobs and increased social costs, all while failing to see the financial benefits they expect.
Industry Pushback: iGaming Advocates Call Report Misleading
Not everyone is convinced. Supporters of online gambling argue that the study overstates the risks and underestimates the potential benefits.
Gene Johnson, executive vice president at Victor Strategies, a gaming industry consultancy, points out that online gambling has already proven highly lucrative in states like New Jersey, Pennsylvania, and Michigan. He believes concerns about job losses are overblown, saying:
“The most critical piece is job loss, which killed the debate in New York last year. But casinos everywhere are operating more efficiently—it’s not just iGaming causing this.”
Johnson also questions the objectivity of the report, noting that it was commissioned by a group with a clear anti-iGaming stance.
What’s next? The debate isn’t going away anytime soon. With billions of dollars at stake, casino operators, lawmakers, and industry analysts will continue battling over the future of online gambling. For now, one thing is clear—regional casino operators aren’t backing down.
