A battle over the future of gambling in the U.S. is heating up. As more states consider legalizing online gaming and poker, a coalition of casino operators is pushing back hard. The newly formed National Association Against iGaming (NAAiG) argues that digital gambling threatens local economies, jobs, and tax revenues. Their latest study paints a bleak picture, warning of massive financial losses if iGaming continues to spread.
Casino Operators Sound the Alarm
Brick-and-mortar casinos have long been economic pillars in many states, providing jobs and contributing heavily to tax revenue. But according to NAAiG, legalizing iGaming threatens that balance. The group, which includes regional casino operators, claims online gambling cuts deeply into casino revenues.
Their newly released study suggests that land-based casinos suffer an average 16% revenue drop when iGaming is introduced. This, they say, results in:
- Widespread job losses
- Reduced economic activity in local communities
- Significant cuts in tax contributions that fund essential services
Mark Stewart, Executive Vice President and general counsel for The Cordish Companies and a board member of NAAiG, is blunt about the risks. “iGaming’s unchecked access to gambling on cell phones is bad public policy that threatens local jobs and businesses and will cost states,” he said.
The Numbers: Jobs, GDP, and Tax Revenue at Risk
The NAAiG study delivers stark projections for several states currently considering iGaming expansion. By 2029, thousands of jobs could be lost across key markets:
| State | Projected Job Losses | Estimated GDP Reduction |
|---|---|---|
| New York | 4,921 | Not specified |
| Illinois | 4,733 | Not specified |
| Ohio | 2,818 | $602 million |
| Indiana | Not specified | $428 million |
| Maryland | Not specified | $372 million |
| Colorado | Not specified | $313 million |
Beyond job cuts, the report highlights that iGaming’s tax revenue gains are not as lucrative as they seem. Factoring in social costs—such as addiction treatment and increased problem gambling—the study claims that states could see net negative tax impacts rather than the expected windfall.
The Divide: Online Gaming Advocates Fire Back
Not everyone in the industry agrees with NAAiG’s conclusions. Major casino operators with a foothold in online gaming, including Caesars Entertainment, MGM Resorts, and Rush Street Interactive, argue that iGaming can boost overall gambling revenues.
A separate study released in 2024 by iDEA Growth (iDevelopment and Economic Association) tells a different story. Conducted by Eilers & Krejcik Gaming (EKG), the research found that states with regulated iGaming saw an average quarterly revenue increase of 2.4% across six states.
Jeff Ifrah, founder and general counsel of iDEA, strongly disputes NAAiG’s claims. “This study offers compelling evidence that online gambling is a catalyst for growth, not a competitor to land-based casinos,” he said.
What’s Next? States Weigh Their Options
With dueling studies and strong opinions on both sides, state lawmakers are left to decide which argument holds more weight. The debate over iGaming expansion is far from settled, and with billions of dollars at stake, both casino operators and policymakers will be watching closely.
Some states, like Maryland, are in particularly tricky positions. While companies like Cordish oppose iGaming on principle, they have acknowledged they would seek a license if legalization happens. As Stewart put it, “We will do very well, but we think Maryland won’t do very well, and we know our employees won’t do very well, and that’s why we’re opposed to it.”
Other major casino operators, like Monarch Casino and Churchill Downs Incorporated, have joined NAAiG in resisting online gambling expansion.
The battle over iGaming is far from over, and with new legislative sessions underway across multiple states, the coming months could shape the industry’s future for years to come.
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