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While regulated online sports betting has taken off in states across the U.S., iGaming has gained little momentum.
Currently, only seven states allow legal iGaming: New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, Connecticut and Rhode Island. Compare that to the 38 states that have regulated sports betting in some capacity, whether it be online, retail or both.
Much of the U.S. market is inundated by sweepstakes casinos, real money online casinos licensed offshore and PPH game providers. In the case of the latter, one can pay a weekly fee as low as $7 per customer to operate their own online casino.
The newly formed group opposed to i-Gaming operators probably doesn't care a whole lot about the PPH or offshore casino operators. The sweepstakes have already invaded. They seem more focused on a regulated infrastructure that threatens land-based establishments.
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.”
While it's true that Caesars Entertainment, MGM Resorts, Rush Street Interactive, Boyd and other larger casino companies have embraced going online, smaller casino operators are less enthusiastic. Monarch Casino and Churchill Downs Incorporated have also come on board with the NAAIG.
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.”
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).
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 of brick and mortar casinos that does not yet offer a mobile platform.
“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.”
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