NAAiG Study Reveals Alarming Economic and Social Risks of iGaming

National Association Against iGaming (NAAiG) Leaders Call on Businesses, Community Leaders and Policymakers to Protect Local Communities and Join the Fight Against iGaming Expansion

PRINCETON JUNCTION, N.J., Feb. 11, 2025 /PRNewswire/ -- In response to escalating concerns over the significant health and economic risks of iGaming, national business leaders have joined forces to launch the National Association Against iGaming (NAAiG). The organization formed in opposition to 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.

A new study for NAAiG by The Innovation Group, a research and advisory firm specializing in gaming, hospitality and tourism that has previously conducted multiple studies of online gambling for state governments and industry stakeholders, debunks the myth that iGaming offers easy revenue for states. Instead, the study uncovers the damaging effects of iGaming expansion, exposing widespread job losses and significant declines in economic output across multiple states.

Critical takeaways include:

• Land-based casino revenue drops by 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.
  
  
• States introducing iGaming face significant economic losses, with projected job cuts reaching 4,921 in New York and 4,733 in Illinois by 2029. 
  
  
• iGaming results in significant losses for states in economic output. All states analyzed would see massive GDP reductions, including Ohio ($602 million), Indiana ($428 million), Maryland ($372 million) and Colorado ($313 million). 
  
  
• States' net tax gains from iGaming are limited, even before accounting for the increased social costs associated with its high rates of problem gambling and related social ills. For instance, Louisiana, Maryland and Mississippi could all see negative net tax revenue due to displaced in-person gaming dollars and related impacts on state and local economies.
  
  
• Brick-and-mortar casinos in every state would face significant revenue losses due to iGaming cannibalization. Projections reach up to $983.7 million in New York, $545.3 million in Illinois, $522.6 million in Ohio, and $342.6 million in Maryland by 2029. 
  
  
• The introduction of iGaming reduces in-person casino employment, with an estimated 2,818 jobs lost in Ohio, 2,642 in Louisiana and 1,906 in Mississippi. 
  
  
• The job losses caused by iGaming will result in massive reductions each year in employee wages and related taxes for states. Annual labor income losses would reach nearly $110 million in Colorado and Maryland, $204 million in Ohio, nearly $300 million in Illinois, and nearly $450 million in New York.
  
  
• States with iGaming experience an 8.3% decline in distributed gaming revenue, impacting taverns and small gaming establishments.
  
  
• Projected U.S. gambling losses from iGaming are expected to surpass $1 trillion by 2028, straining local economies and public health resources.

The study's findings expand on existing studies and media reports that have linked iGaming expansion to rising gambling addiction rates, job displacement and significant economic losses:

• Direct social costs to governments from problem gambling and social ills tied to online gambling could well exceed $100 million annually, plus additional downstream economic losses from a 4-5x loss in productivity.

• 81% of gambling addicts engage in online gaming, making addiction harder to control.

• Online gamblers are 8 times more likely to report compulsive gambling.

• In areas with legalized iGaming, household investments have declined by 14%.

• Underage gambling increases with online gambling, with 26.4% of adolescents that engage in iGaming developing gambling disorders.

"These statistics underscore the urgent need for action," said Mark Stewart, EVP & General Counsel of The Cordish Companies and NAAiG board member. "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."

"Beyond the lack of any real upside for states, iGaming puts vulnerable individuals at greater risk of problem gambling and financial instability," said NAAiG board member Jason Gumer, Executive Vice President and General Counsel at Monarch Casino & Resort, Inc. "NAAiG is uniting stakeholders to push back and stop the spread of these harmful trends and advocate for responsible gaming policies."

NAAiG's Mission and Advocacy Efforts

NAAiG unites casinos, local businesses, unions, employees and advocacy groups to promote community-focused, sustainable gaming. Its members advocate for responsible gaming and fair policies that put people before profits. They also emphasize the economic and social benefits of in-person gaming while highlighting the risks of iGaming, such as isolation and addiction.

Key advocacy priorities include:

• Fighting the spread of iGaming to prevent addiction, financial instability and job loss.
• Promoting in-person gaming, which supports local economies and provides built-in safeguards.
• Strengthening regulations and oversight to protect consumers and prevent predatory practices.
• Educating policymakers and the public on the real risks of iGaming.

NAAiG leaders are calling on businesses, community leaders and policymakers to join the fight against iGaming's unchecked expansion and associated risks.

"iGaming is eroding our communities," said Shannon McCracken, Senior Director of Government Relations at Churchill Downs Incorporated and NAAIG board member. "This isn't just about responsible gaming—it's about protecting local family-sustaining jobs and preventing financial harm. In Maryland alone, iGaming could cost $372 million in economic output, $342.6 million in lost casino revenue and nearly $110 million in annual wages. We must act now to protect our state and local economies nationwide."

For more information about NAAiG and the risks of iGaming expansion from its study, visit www.naaig.org. The organization is actively fostering participation of membership among industry leaders and policymakers to deliver valuable research and advocate for responsible gaming policies that protect jobs, families and local economies.

About NAAiG

The National Association Against iGaming (NAAiG) is dedicated to protecting communities from the risks of online gambling by advocating for responsible, in-person gaming. NAAiG works to preserve local jobs, ensure gaming integrity and promote economic reinvestment in local communities. Through advocacy, education and policy initiatives, the organization fights the expansion of iGaming, opposes predatory digital gaming practices, supports consumer protections and increasing law enforcement tools against illegal online gambling websites, and collaborates with policymakers to uphold transparency and responsible gaming laws.

Contact: Leo Rommel, [email protected]

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SOURCE National Association Against iGaming (NAAiG)