#United States #Economic Impact #iGaming Risks #NAAiG #Princeton Junction

Unpacking the Economic and Social Risks of iGaming

Introduction

The advent of internet-based gambling, commonly known as iGaming, has stirred significant concerns across the United States regarding its economic and social repercussions. Responding to these issues, the National Association Against iGaming (NAAiG) was launched with the goal of mobilizing business leaders and community advocates against the unchecked expansion of this digital gambling trend.

The Findings of the NAAiG Study

Recent research conducted by The Innovation Group on behalf of NAAiG reveals alarming findings about the impact of iGaming. Rather than the anticipated boost in state revenues, the study uncovers serious risks, including economic decline and job losses.

Key Insights from the Study

1. Decline in Casino Revenues: The introduction of iGaming leads to a notable reduction in revenue for land-based casinos, averaging a 16% decline. This translates into substantial job losses and diminished economic output across various states.
2. Projected Job Losses: The study anticipates that states like New York and Illinois will face significant job cuts, with projected losses of 4,921 and 4,733 jobs respectively by the year 2029.
3. Economic Output Losses: States analyzed will experience massive GDP reductions—with losses projected at $602 million in Ohio, $428 million in Indiana, and more as a result of the expansion of iGaming.
4. Limited Tax Gains: While proponents argue about the fiscal benefits of iGaming, the study indicates that net tax gains are limited and often overshadowed by increased social costs. For instance, Louisiana and Maryland could see their tax revenues negatively affected due to the displacement of in-person gaming dollars.
5. Cannibalization of In-Person Gaming: Brick-and-mortar casinos across the U.S. are bracing for significant revenue losses, with projections of up to $983.7 million in New York alone by 2029 as gamers turn to online options.
6. Job and Wage Reductions: Massive job cuts from iGaming means substantial declines in employee wages and tax revenues for states—annual labor income losses could reach $450 million in New York and $300 million in Illinois.
7. Negative Impact on Small Businesses: The decline in distributed gaming revenue is projected to be around 8.3%, severely impacting local taverns and small establishments.
8. Projected Losses Exceeding $1 Trillion: The total U.S. gambling losses from iGaming are expected to surpass $1 trillion by 2028, posing a strain on local economies and public health resources.

Social Implications of iGaming

The report also highlights a disturbing trend of rising gambling addictions linked to online platforms, with 81% of gambling addicts reporting engagement in online gaming. Online gamblers are shown to be eight times more likely to identify as compulsive gamblers, and adolescent gambling issues are magnified with increased online access.

NAAiG's Advocacy

NAAiG focuses on uniting stakeholders to combat the negative implications of iGaming and promote responsible gaming alternatives. Their mission includes advocating for:

• - Stronger Regulations: Creating stringent regulations to protect consumers from predatory practices associated with online gaming.
• - In-Person Gaming: Encouraging in-person gaming which supports local economies and offers built-in safeguards against gambling addiction.
• - Education and Outreach: Raising awareness about the risks tied to iGaming, especially in vulnerable populations.

Conclusion
As the digital gambling landscape continues to evolve, the NAAiG’s findings serve as a clarion call to policymakers, businesses, and community leaders. There is an urgent need to safeguard local economies, combat the detrimental effects of iGaming, and promote healthier, sustainable gambling policies that prioritize the welfare of individuals and communities. The proactive steps articulated by NAAiG aim not only to protect jobs but also to foster a healthier environment free from the risks associated with gambling addiction.

For further information on the risks linked to the expansion of iGaming and the efforts of NAAiG, visit www.naaig.org.