Online gaming has seen a number of proponents in recent times, and several states have filed bills to legalize them. Now, several of the biggest casino operators, such as MGM and Caesars, are supportive of the expansion of online casino gaming in the US - but some regional land-based casino operators say that iGaming will have a negative impact on the industry.

As the 2025 legislative season unfolds across the United States, the debate over legalizing and expanding iGaming options is gaining momentum in numerous state capitals. The question at the heart of the matter is whether the authorization of interactive online table games and slot machines will benefit or harm state economies - and the answer largely depends on who you talk to.

Some of the country's largest casino gaming operators, including Caesars Entertainment, MGM Resorts, Boyd Gaming, and Penn Entertainment, have expressed strong support for iGaming expansion. Light & Wonder, a leading manufacturer of physical gaming products such as slot machines and table games, has also shown confidence in the digital gaming sector, investing heavily in its online division.

The opposition: regional operators push back

However, not all players in the gaming industry share this enthusiasm. Some companies argue that iGaming negatively impacts land-based casinos, leading to a decline in in-person gaming revenue and affecting other services like food, beverage, hotel stays, and entertainment. Concerns about problem gambling and inadequate consumer safeguards to promote responsible gaming are also central to the opposition's arguments.

Among the most vocal opponents are Las Vegas Sands and Wynn Resorts, which has expressed less interest in iGaming compared to its biggest competitors. Operators of regional casinos, such as The Cordish Companies and Churchill Downs Incorporated, have been particularly active in lobbying against online gaming. Late in 2024, these firms joined forces to create the National Association Against iGaming or NAAiG, which also includes Monarch Casino Resort & Spa's Black Hawk as a founding partner.

Economic impact: jobs at stake?

In a new study ordered by NAAiG and conducted by New Orleans-based gaming consultants The Innovation Group, many of the claims made by iGaming proponents are challenged. According to the research, land-based casinos experience an average 16% decline in gross gaming revenue following the introduction of iGaming. This downturn is projected to result in "substantial job losses, hundreds of millions of dollars in lost economic output, and reduced tax contributions that fund public services."

The report paints a grim picture for states considering iGaming legislation. If New York and Illinois, for example, were to legalize online casinos, nearly 10,000 jobs could be lost by the year 2029. In Ohio, iGaming could lead to the loss of as much as 2,800 in-person casino jobs, while Louisiana and Mississippi could see declines of 2,600 and 1,900 jobs, respectively. Each of these states currently has iGaming bills under consideration.

"Online gambling is eroding our communities," said Shannon McCracken, Churchill Downs' senior director of government relations. "This isn't just about responsible gaming - it's about protecting local, family-sustaining jobs and preventing financial harm."

Mark Stewart, executive VP and general counsel at The Cordish Companies, echoed these sentiments: "iGaming's unchecked access to gambling on cell phones is bad public policy that threatens local jobs and businesses. When you consider the increased social costs, such as higher rates of underage and problem gambling, the net tax revenue results are uniformly negative for every state."

iGaming advocates: a complement, not a competitor

Despite their opposition, both Cordish and Churchill operate iGaming casinos in Pennsylvania, which is one of only seven US states where online table games and slots are legal. Cordish claims it entered the online market reluctantly after lawmakers in Pennsylvania expanded gambling online in 2017. Churchill, on the other hand, opted to sell its iGaming rights to bet365.

For many in the industry, iGaming is not a threat but an opportunity. Howard Glaser, a leading government affairs specialist with Light & Wonder, argues that iGaming complements brick-and-mortar casinos rather than undermining them. During a recent interview Glaser highlighted that many young people are already gambling through unregulated offshore websites and so-called sweepstakes platforms that run in legal gray areas.

"It's the same question for us," Glaser said. "We are primarily a land-based company - our numbers show this - but as a public company, we answer to shareholders and investors. We're for growth. Our conclusion is that iGaming is already happening illegally, and in markets where it's legal, it's been complementary to brick-and-mortar operations. They can reinforce each other and spur growth." Glaser emphasized that Light & Wonder carefully weighed the pros and cons before deciding that online gaming represents a net positive for the industry.