The debate over iGaming expansion in the U.S. has escalated with the emergence of the National Association Against iGaming (NAAiG), a coalition opposing online gambling.
The group recently released a study arguing that iGaming negatively impacts both the economy and society, challenging the belief that online gambling significantly boosts state revenue.
Conducted by The Innovation Group on behalf of NAAiG, the study claims that iGaming leads to a 16% decline in retail casino revenue, triggering job losses, economic downturns, and reduced tax contributions that support public services. Additionally, the report projects that total gambling losses from iGaming will surpass $1 trillion by 2028, straining local economies and public health resources.
NAAiG is actively rallying businesses, policymakers, and community leaders to oppose online gambling initiatives. Among its leaders are high-ranking executives from major casino operators, including Churchill Downs, Cordish Companies, and Red Rock Resorts. These organizations stress the importance of brick-and-mortar casinos in driving local economic growth and mitigating the social risks associated with iGaming.
Headquartered in New Jersey, NAAiG is particularly focused on Atlantic City, where casinos have reported revenue declines amid rising iGaming interest.
The Innovation Group’s study, commissioned by NAAiG, projects significant job losses and economic downturns due to iGaming, though it acknowledges these estimates as “forward-thinking.” Beyond economic concerns, the report highlights the social costs of online gambling, estimating that direct government expenses related to problem gambling could surpass $100 million annually.
The study suggests the broader economic impact, including reduced productivity and financial distress among gamblers, could be four to five times higher than the direct costs.
It also raises concerns about gambling addiction, citing data that 81% of gambling addicts engage in online gambling.
Additionally, the report suggests that online gamblers are significantly more likely to develop compulsive gambling habits compared to those who gamble in person.
