The iGaming industry faces a growing divide as stakeholders debate its impact on traditional casinos and society at large. A recent report has ignited fresh controversy, pitting online gambling advocates against those wary of its expansion.
Key Takeaways:
- New study claims iGaming could lead to significant job losses and economic setbacks for land-based casinos
- Online gambling supporters argue that iGaming complements brick-and-mortar operations and attracts a younger demographic
- Debate over responsible gaming and economic impact stalls iGaming legalization efforts in several states
Study Predicts Negative Impact on Land-Based Casinos
A report commissioned by the National Association Against iGaming has raised alarm bells about the potential consequences of online gambling expansion. The study, authored by Brian Wyman of The Innovation Group, projects a 16% decline in traditional casino revenues in states that adopt iGaming. This could result in nearly 5,000 job losses across multiple states by 2029.
The research also forecasts substantial GDP losses in key gambling markets:
- Ohio: $602 million
- Indiana: $428 million
- Maryland: $372 million
Beyond economic concerns, the study highlights responsible gaming issues. It suggests that most problem gamblers engage in online betting and warns of increased risks for underage gambling.
iGaming Advocates Challenge Study Findings
A coalition of online gambling proponents, including DraftKings, FanDuel, BetMGM, and iDEA, has pushed back against the report’s conclusions. They argue that internet gaming doesn’t cannibalize land-based casino business but instead attracts a new, younger audience interested in lower-stakes online play.
John Pappas, an industry advisor and state advocacy lead for iDEA, points out a contradiction in the anti-iGaming stance. He notes that some companies opposing iGaming expansion are themselves involved in online betting through partnerships or proprietary platforms.
Regulatory Concerns Slow iGaming Expansion
The ongoing debate has impacted iGaming legalization efforts in several states. Shannon McCracken, senior director of government relations at Churchill Downs, observes that policymakers remain cautious due to social impact concerns. She argues that states with legal iGaming haven’t seen the projected economic benefits, explaining the industry’s struggle to expand beyond a few jurisdictions.
Responsible gaming expert Brianne Doura-Schawohl echoes these concerns, urging states to consider the social costs associated with gambling expansion. She cites Maryland as an example, where lawmakers are reevaluating previous gaming expansion decisions.
Despite the pushback, many industry insiders believe the shift towards online gambling is inevitable. Jessica Feil from OpenBet argues that today’s consumers demand digital gaming options, and the industry must adapt. She emphasizes that regulated online platforms offer player protection tools absent in unregulated markets.
As the debate rages on, the future of iGaming remains uncertain. Stakeholders on both sides continue to present their cases, leaving policymakers with the challenging task of balancing economic potential against social responsibility concerns.
