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One of the hottest debates about online casinos is whether they help or hurt in-person casinos.
According to a new study commissioned by online gaming trade association iDEA Growth, however, the issue is settled. Online casinos boost land-based casino revenue, a conclusion that iDEA hopes will pave the way for the legalization of online casinos beyond the six states that have it.
In an iDEA Growth news release, General Counsel Jeff Ifrah said about the study:
“This study offers compelling evidence that online gambling is a catalyst for growth, not a competitor to land-based casinos. The research underscores the conviction that legalizing it drives beneficial economic impact across the industry.
As lawmakers consider the merits of legalizing and regulating iGaming, they can be assured that it will complement the land-based casinos to deliver even more tax revenues to their states and establish meaningful consumer protections.”
Study finds online casinos boost land-based revenue by 2.44%
iDEA hired gaming consultants Eilers & Krejcik Gaming to conduct the study. They gathered a team of gaming experts to analyze quarterly revenue growth in the six states that have legal online casinos in the US:
- Connecticut
- Delaware
- Michigan
- New Jersey
- Pennsylvania
- West Virginia
Eilers & Krejcik found that, on average, online casinos boosted brick-and-mortar casino revenue by 2.4%. Eilers & Krejcik Managing Director Matt Kaufman said online casinos have helped steady declines in the land-based casino market.
“This study offers compelling evidence that online gambling is a catalyst for growth, not a competitor to land-based casinos,” he said. “The research underscores the conviction that legalizing it drives beneficial economic impact across the industry.”
Other states could see an average revenue boost of 1.7%
While the study’s conclusions about existing online casino markets were important, perhaps even more significant were its projections for how online casinos could impact states that don’t have iGaming.
Using advanced mathematical modeling techniques, Eilers & Krejcik found that adding online casinos to states with land-based gaming could produce an average revenue increase of 1.7%.
iDEA is hoping that the new data will help convince lawmakers that online casinos won’t hurt land-based revenue. Ifrah said:
“As lawmakers consider the merits of legalizing and regulating iGaming, they can be assured that it will complement the land-based casinos to deliver even more tax revenues to their states and establish meaningful consumer protections.”
iDEA plans to use the Eilers & Krejcik findings to sway the opinions of lawmakers in new states who may be wavering on the benefits of iGaming. “This study bolsters our advocacy efforts in key states, and we look forward to sharing the information with policymakers,” Ifrah said in the release.
There is a growing interest in online gambling and casinos across the county and lawmakers have begun introducing new bills. PlayUSA is keeping track of the 2024 gambling legislation progress and you can too with our 2024 gambling bill tracker.
