A coalition of online gambling advocates, including DraftKings, FanDuel, BetMGM, and iDEA, argues that internet gaming does not take customers away from brick-and-mortar casinos but rather enhances their business by attracting a younger audience
The gap in the gaming world about internet casino betting, or iGaming, keeps getting bigger. A new report has added fuel to the fire. The National Association Against iGaming asked for this study. It brings up concerns about possible financial problems, job cuts, and social harm tied to online betting. On the flip side, those who back iGaming say that controlled online gaming helps the industry grow and meets changing customer needs.
Study Predicts iGaming Will Hurt Land-Based Casinos, Cost Thousands of Jobs
The Innovation Group’s Brian Wyman wrote a report that claims introducing online gambling has a negative impact on land-based casino income, which leads to job cuts and economic setbacks. The study forecasts that states that adopt online gambling might see a 16% drop in traditional casino earnings, causing almost 5,000 job losses across several states by 2029. Also, it projects big GDP losses in states such as Ohio ($602 million), Indiana ($428 million), and Maryland ($372 million).
The study raises red flags about responsible gaming issues going beyond just economic concerns. It states that most people with gambling problems bet online. It also highlights a higher chance of underage gambling, with more than 25% of teens who play iGames developing gambling-related issues.
iGaming supporters push back, but Wyman says the research was fair. He knows major casino companies see things differently. Still, he thinks lawmakers should grasp what is at stake before they grow online gaming.
Online Gambling Supporters Reject Economic Concerns, Highlight Growth and Consumer Protection
A group of online gambling supporters, including DraftKings, FanDuel, BetMGM, and iDevelopment and Economic Association (iDEA), have opposed the report. They claim that internet gaming does not steal customers from physical casinos but instead adds to their business by drawing in a different crowd, younger people who prefer to play games with lower stakes online.
A different study, paid for by advocates of online gambling, challenges the idea that it hurts the economy. Their research shows that in states where online casinos operate, the revenues of physical casinos have stayed the same or even gone up. Also, those in favor say that without legal online options, people will use unregulated offshore websites, which do not protect consumers and do not contribute to state economies.
John Pappas, who advises the casino industry and leads state advocacy for iDEA, points out that some businesses fighting against iGaming are involved in online betting themselves, reported CDC Gaming. They do this through partnerships or their own platforms. Companies like Cordish Companies and Churchill Downs fall into this category. Pappas believes this contradiction makes their stance against expanding iGaming less convincing.
Debate Over iGaming’s Risks and Rewards Delays Legalization in Several States
The iGaming debate has an influence on slowing down expansion efforts in several states. Churchill Downs’ senior director of government relations, Shannon McCracken, notes that policymakers stay cautious because of worries about social effects. She claims that states that have made iGaming legal have not seen the expected economic gains, which explains why the industry has found it hard to grow beyond a few states.
Responsible gaming expert Brianne Doura-Schawohl shares these worries, cautioning that states need to consider the social costs linked to gambling expansion. She refers to Maryland, where lawmakers are now thinking again about past choices on gaming expansion, as an example of possible regulatory pushback.Despite the pushback, many industry bigwigs think online gambling cannot be stopped. Jessica Fell from OpenBet claims today’s customers want digital gaming choices, so the industry needs to keep up. She says regulated online platforms offer safety tools that unregulated markets do not have, making them a safer bet for users.
