The fight over iGaming’s expansion in the U.S. has reached a new level with the National Association Against iGaming (NAAiG) releasing a study warning of severe economic consequences for land-based casinos. The report claims that iGaming leads to a 16% decline in casino revenue, job losses exceeding 2,800 in Ohio, and a $600 million GDP hit in states like Ohio, Maryland ($370 million), and Colorado ($313 million). But is this really the full picture?
Opponents argue that the shift to online gambling threatens brick-and-mortar casinos by drawing customers away. However, studies from Penn State University and iDEA Growth challenge this claim. Data from New Jersey, Pennsylvania, and Michigan—where iGaming is fully legalized—show that total gaming revenue increased by over 20% post-legalization. In Pennsylvania alone, iGaming revenue surpassed $1.4 billion in 2023, while New Jersey saw over $1.9 billion from online gambling, proving that digital platforms enhance overall industry performance rather than cannibalizing it.
Consumer behavior is shifting, and digital gaming is an inevitable evolution. Just like e-commerce did not eliminate physical retail but forced adaptation, casinos must innovate to stay relevant. Hybrid strategies—such as loyalty integrations between online and in-person play—have already proven successful, allowing both segments to thrive.
Another critical factor is tax revenue. In 2023, Michigan collected over $300 million in iGaming taxes, New Jersey exceeded $350 million, and Pennsylvania generated $477 million. This funding directly supports state programs, including education and infrastructure. Meanwhile, responsible gaming measures in online platforms allow for real-time monitoring and intervention, addressing concerns about problem gambling more effectively than traditional casinos.
The NAAiG study raises concerns, but policymakers must consider all data. iGaming isn’t a threat—it’s an opportunity. The real question is whether states will harness its potential or resist an inevitable digital transformation.
