Senior executives from companies such as Churchill Downs, Monarch Casino & Resort, and The Cordish Companies have joined to launch the National Association Against iGaming (NAAiG).
The Association announced its inception by releasing a study called the “Economic Impacts of iGaming Expansion,” undertaken by The Innovation Group.
NAAiG’s Mission: Preventing iGaming Expansion
The NAAiG’s aim is simple: to prevent further legalization of iGaming. The Association’s key advocacy priorities are:
- Strengthening regulations and oversight to enhance consumer protection.
- Preventing further legalization of iGaming to avoid job losses, addiction, and financial instability.
- Promoting visitors to brick-and-mortar venues, as they ‘support local economies’ and provide in-built safeguards.
- Educating policymakers as to ‘the real risks’ of iGaming.
NAAiG Board Member Jason Gumer, Executive Vice President and General Counsel of Monarch Casino & Resort, commented: “Beyond the lack of any real upside for states, iGaming puts vulnerable individuals at greater risk of problem gambling and financial instability. NAAiG is uniting stakeholders to push back and stop the spread of these harmful trends and advocate for responsible gaming policies.”
The comprehensive study published shows limited benefits to iGaming expansion yet highlights many problems. One of the advantages of iGaming legalization is states “bolstering their gaming tax receipts.” It outlines that the National Council of Legislators from Gaming States has recommended a tax rate of between 15 and 25 percent. It suggests that higher tax rates will mean operators are less able to reinvest in areas such as compliance, player acquisition, player retention, and technological improvements that can better equip them to compete with the unregulated market.
The Cannibalization Debate: How Online Gambling Affects Retail Casinos
The cannibalization debate has been a significant barrier to iGaming expansion across states. The Innovation Group’s report suggests brick-and-mortar casino revenue underperforms by 16.5 percent following iGaming legalization.
This number is derived from comparing the results of iGaming states, which saw an approximate 4.3 percent decline in retail revenue, against those in non-iGaming states, which achieved 12.2 percent growth over the last five years. The report suggests this may grow as the channel shift continues and ‘digital natives’ become the gambling industry’s core customers.
The NAAiG has highlighted that the 16 percent revenue drop would lead to “substantial job losses, hundreds of millions of dollars in lost economic output, and reduced tax contributions that fund public services.”
The study analyzes several states individually and models the potential economic impact of legalized iGaming in each. It projects that by 2029, New York will see 4,921 job cuts, and Illinois will see 4,733
Further, the report estimates that New York would see a tax revenue benefit of $140.8 million but a net impact of negative $1.2 billion from the introduction of iGaming. Ohio would generate $223.9 million in tax revenue but at an economic cost of $602 million.
The NAAiG has stressed that gambling losses from iGaming in the United States are expected to surpass the $1 trillion mark. This suggests that this causes significant strain on local economies and public health resources.
NAAiG Warns of Rising Gambling Addiction and Productivity Losses
The study expands on existing media reports and studies linking further legalization to gambling addiction rates and job displacement, stating that social costs to governments “could well exceed $100 million annually, plus additional downstream economic losses from a 4-5x loss in productivity.”
The Association also highlights that 81 percent of gambling addicts “engage in online gaming” and that online gamblers are eight times more likely to report compulsive gambling. It also suggests that in areas where iGaming has been legalized, household investments have declined by 14 percent.
“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.”
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