New Study Supports Idea That Retail and iGaming Can Peacefully Coexist

Article by : Erik Gibbs Mar 21, 2024

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The gambling industry has received a new study that sheds light on the symbiotic relationship between traditional brick-and-mortar casinos and their digital counterparts. Even as states embrace online gambling via phones and computers, the study, similar to previous studies, reveals that physical casinos and their online counterparts can peacefully coexist.

The comprehensive 167-page report, conducted by the Sports Gaming Alliance, delves into the intricate dynamics of iGaming (online gambling) across six states where it is currently legal. Its primary objective? To extrapolate how the introduction of iGaming would impact the economies of five additional states—New York, Illinois, Louisiana, Maryland, and Virginia—where legalization is under consideration. By combining rigorous economic and statistical methodologies with valuable consumer survey data, the study paints a nuanced picture of the industry’s future.

Commissioned by the Sports Gaming Alliance, this new study carries weight. The alliance, comprising industry giants like DraftKings, BetMGM, FanDuel, and Fanatic Sports Book, recognizes the stakes involved. The report, meticulously prepared by the Analysis Group—an esteemed international economic research firm—holds insights for policymakers, investors, and communities alike.

Contrary to the notion of competition, the study underscores that iGaming and land-based casinos serve distinct yet complementary purposes. Rather than cannibalizing each other’s market share, they coexist harmoniously, catering to diverse player preferences.

iGaming platforms offer convenience, accessibility, and a wide array of games—from slots to poker—accessible at the tap of a screen. Players relish the flexibility to wager from their living rooms or during their daily commute. The allure of virtual tables and interactive slots draws a tech-savvy audience seeking entertainment beyond traditional casino walls.

Physical casinos, with their glitzy interiors, live dealers, and vibrant atmosphere, provide an irreplaceable sensory experience. The clatter of chips, the anticipation at the roulette wheel, and the camaraderie at card tables create an ambiance that transcends pixels and algorithms.

Legalizing iGaming can inject fresh revenue streams into state coffers. Tax revenues from online gambling can bolster education, infrastructure, and public services. The study’s findings will inform legislators as they weigh the economic pros and cons.

Both iGaming and land-based casinos generate employment opportunities. From software developers and customer support staff for online platforms to dealers, hospitality staff, and security personnel at physical casinos—the industry sustains livelihoods.

Casinos, whether digital or physical, attract tourists. A weekend getaway to a resort casino or a virtual poker tournament draws visitors. The ripple effect extends to hotels, restaurants and local businesses.