Crypto iGaming legalization faces another threat, with the National Association Against iGaming (NAAiG) being launched in the United States of America.
Senior leaders from companies with significant brick-and-mortar interest such as Churchill Downs and Monarch Casino & Resort, have joined forces in an attempt to prevent online gaming expansion, not limited to but including crypto casinos.
The NAAiG claims that the “rapid expansion of iGaming has created a pressing need for action.”
The Association claims that increased legalization of iGaming has led to the following:
- Rising rates of gambling addiction, specifically in young adults.
- Financial instability in families, driven by the ‘unchecked accessibility’ of online gambling.
- Decreases in people visiting land-based gaming establishments, leading to significant job losses.
- Reductions in tax revenues and public funding as online operators shift money elsewhere.
The NAAiG blames iGaming for the erosion of foundations of local economies, harm in vulnerable populations and shirking of accountability and responsibility that traditional gaming establishments boast.
“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,” stated NAAiG Board Member Jason Gumer, Executive Vice President and General Counsel of Monarch Casino & Resort.
The Association announced its inception by releasing a study called the “Economic Impacts of iGaming Expansion.” The report was conducted by The Innovation Group and expectedly shows limited benefits to the expansion of iGaming, and a scathing set of forecasts should U.S. states decide to allow legal online gaming.
Will iGaming Expansion Weaken Brick-and-Mortar Casinos?
Across the United States, debates in the House and Senate tend to center on the cannibalization of brick-and-mortar revenue. The research presented by the NAAiG suggests that in states where online gaming has been legalized, land-based gaming is now underperforming by 16.5 percent.
The body suggests that such a decline would wreak havoc on a state-by-state level. It estimates a $1.2 billion net negative impact on the state of New York should it introduce iGaming. It also anticipates the Empire State would see 4,921 job cuts as a result of shuttering local businesses.
It also links gambling addiction rates and job displacement to online gambling. It predicts social costs to governments could exceed $100 million per annum and states that 81 percent of gambling addicts engage in online gambling and are eight times more likely to report compulsive gambling behavior.
Shannon McCracken, Senior Director of Government Relations at Churchill Downs Incorporated and NAAiG board member, commented: “iGaming is eroding our communities. 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.”
The only positive that the report affords iGaming is expanded (initial) tax revenue. The report, however, fails to consider President Trump’s positive attitude towards cryptocurrency regulation, and potential broadening of the scope of online gaming could in-turn bring further tax receipts to the United States.
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