iDEA: iGaming helps doesn't hurt land-based casinos

A fear about the negative impact iGaming has on land-based casinos may finally be put to rest following a new study by the iDevelopment and Economic Association (iDEA) which asked Eilers & Krejcik Gaming to look harder at the facts and either confirm or dispel the suspicion.

Proponents of online casinos from California to NewYork would be happy to hear that according to the study’s findings, iGaming does nothing to harm or impede land-based financial performance. If anything, it seems to be adding to it and revitalizing land-based properties.

The findings are significant, says Jeff Ifrah, iDEA Growth Founder and General Counsel, as the results suggest there is no real economic argument to stop further legalization attempts of online gambling.

"This study offers compelling evidence that online gambling is a catalyst for growth, not a competitor to land-based casinos," Ifrah adds, leveraging the study’s findings and hoping this would help move the needle in favor of lawmakers who are serious about pushing through viable legislation through their local legislature.

Although there are other things at play when weighing the benefits of legalizing online gambling, Ifrah feels that the study’s findings can help quash fears that iGaming would "cannibalize" on land-based revenue.

Rather, it is going to complement it and help the land-based sector perform better if anything. At the same time, state coffers stand to benefit as iGaming is associated with higher tax windfall owing to the higher percentage of wins that casinos post.

For their part, Eilers & Krejcik Gaming did not approach the subject lightly either, fielding a team of data analysts, industry insiders, and economists who had a closer look at iGaming states that also run land-based gaming.

The study also used a "control group" where several states were selected because they ran land-based casino gambling only, meaning they did not offer online casino gambling in any capacity, except perhaps social or sweepstakes models.

Commenting on these results, the research company’s Managing Director, Matt Kaufman, appealed for anyone interested to look at the numbers. The closer you look, he argued, the more you see that land-based gaming benefits from iGaming.

By how much is the question that ought to be asked and fairly so? The numbers are still a moving target, but casino revenue is expected to grow by 1.7% every year after iGaming is introduced as a complementary product to land-based gambling. Could researchers be cherry-picking? Certainly. Yet, the findings seem reassuring and without a credible dispute or rebuttal of the study, lawmakers may have one thing less to worry about this and future legislative sessions.

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