Opposition group says igaming could cost the US $1 trillion by 2028
The National Association Against iGaming released the results of a study from Innovation Group showing land-based casino revenue dropped by 16% after the legalization of igaming. According to the report, this is just one stat that shows “the significant economic and social dangers of igaming expansion.”
Because of job losses and reduced tax contributions, gambling losses from igaming are projected to reach $1 trillion by 2028.
“It [the report] reveals a stark reality: widespread job losses, billions in economic decline and increased social costs tied to problem gambling in several states,” a NAAG statement said.
NAAG members include executives from land-based casino operators like Accel Entertainment, Churchill Downs Incorporated, Cordish Companies, Foundation Gaming, Jack Entertainment and Red Rock Resorts.
The report has been criticized by leading members of the igaming industry.
“The report was commissioned by a well-funded group whose purpose is to oppose igaming expansion,” Executive Vice President of Victor Strategies Gene Johnson said. “So consider the source. Innovation is a well-established consultancy, but they’re making a number of assumptions that it reduces land-based revenue, leads to job losses and increases problem gambling. Many of these are unsupported by the analysis in the report.”
The report is expected to be used to argue against igaming expansion in states like Ohio, Louisiana and Mississippi. It estimates that more than 2,800 jobs would be lost in Ohio, more than 2,600 in Louisiana and more than 1,900 in Mississippi. As reported by CDC Gaming, the study also suggests Ohio would lose $602 million in GDP through igaming legalization.
