Online Gaming Sparks Debate Among Brick-and-Mortar Casinos During Lawmaking Season

As the 2025 legislative season gains momentum, many state capitals are actively considering the legalization of online gaming, including interactive slot machines and table games. Whether authorizing iGaming is beneficial largely depends on who you ask.

Several of the largest U.S. gaming operators — such as MGM Resorts, Caesars Entertainment, Penn Entertainment, and Boyd Gaming — generally support iGaming. Additionally, Light & Wonder, a leading global manufacturer of physical gaming products like slot machines and tables, has shown strong confidence in the digital sector and has made significant investments in its iGaming division.

However, some major players oppose online gaming, arguing that it reduces foot traffic at brick-and-mortar casinos, leading to decreased revenues not only from gaming but also from ancillary businesses like food and beverage, entertainment, and hotel services. Concerns about problem gambling and insufficient consumer protections are also frequently cited by opponents.

Among those opposing iGaming are industry giants like Las Vegas Sands, the world’s largest gambling company by market capitalization, and Wynn Resorts, which is more hesitant about online gaming compared to its main competitors. Regional operators, including The Cordish Companies in Maryland and Churchill Downs Incorporated in Kentucky, have been particularly active lobbying against iGaming in state legislatures. Late last year, these firms joined forces to create the National Association Against iGaming (NAAiG), with Colorado’s Monarch Casino Resort & Spa as a founding partner.

Does Online Gambling Cost Jobs?

A recent study commissioned by NAAiG and conducted by The Innovation Group, a New Orleans-based gaming consultancy, challenges claims made by iGaming proponents. Their research found that land-based casinos typically lose about 16% of their in-person gross gaming revenue (GGR) after iGaming is introduced. This decline, they argue, results in significant job losses, hundreds of millions in lost economic output, and reduced tax revenues that support public services.

If Illinois and New York legalize iGaming, the study forecasts nearly 10,000 jobs lost by 2029. Similarly, Ohio could see more than 2,800 casino jobs disappear, Louisiana over 2,600, and Mississippi about 1,900 jobs. All these states currently have iGaming legislation under consideration.

“iGaming is eroding communities,” said Shannon McCracken, senior director of government relations at Churchill Downs. “It’s not just about responsible gaming — it’s about protecting local, family-sustaining jobs and preventing financial harm.”

Mark Stewart, executive vice president and general counsel at The Cordish Companies, added, “iGaming’s unrestricted access through smartphones is bad public policy. It threatens local jobs and businesses and will ultimately cost states. When factoring in social costs like increased underage and problem gambling, the net tax revenue impact is negative for every state.”

Supporters See iGaming as Complementary

Despite opposing iGaming in principle, Cordish operates online casinos in Pennsylvania, one of just seven states where internet slots and table games are legal. Their involvement is a result of Pennsylvania’s 2017 expansion of gambling to include the internet. Churchill Downs also owns a casino in Pennsylvania but chose to sell its iGaming rights to bet365.

Cordish and Churchill are in the minority, as most industry insiders believe iGaming can coexist with, and even boost, brick-and-mortar casinos. Howard Glaser, a top government affairs expert working with Light & Wonder, pointed out that many high school and college-aged individuals already gamble online through unregulated offshore sites or sweepstakes platforms operating in legal gray areas.

“We ask ourselves the same question,” Glaser said. “While we are primarily a land-based company, as a public company we answer to shareholders and investors, and we’re for growth. Our conclusion is that illegal online gaming is already widespread, and where legal, iGaming has proven complementary to physical casinos — they can reinforce each other and drive growth.”

Glaser explained that Light & Wonder thoroughly analyzed the pros and cons of iGaming and ultimately decided that online gaming is a net positive for the industry.