What Industry Conflicts Reveal About the Future of Online Gambling
Each year, more people choose to play online instead of going to a physical casino. This shift has sparked arguments inside the industry.
Some believe the industry should back new technology. Others are concerned it might cause problems later on. They point to job cuts at local casinos and uneven rules between online and offline operators. There’s also concern about how quickly the market is changing.
Together with the team at Gamblizard, a project that tests online casinos and tracks how they work in practice, we decided to look at this issue more closely. Their team signs up, plays, and reviews everything from payments to safety, so Canadian players know what they’re getting into.
The clash between old models and new ones is now hard to ignore. This piece looks at the key arguments behind the scenes.
Core Arguments From Opponents
Not everyone in the industry supports the shift toward online betting. The National Association Against iGaming (NAAiG) says the shift to online betting brings problems that don’t get enough attention. They point to recent data that raises doubts about how sustainable this growth really is for both: the economy and society.
Revenue Decline for Land-Based Casinos
One of NAAiG’s main points is that online betting puts pressure on traditional casinos. A study by The Innovation Group, prepared for NAAiG, claims retail casino revenue drops by around 16% after iGaming is introduced.
By 2029, the report estimates losses of nearly $984 million in New York, $545 million in Illinois, and $523 million in Ohio. Labour income is also expected to fall by $450 million in New York and close to $300 million in Illinois. In Canada land-based sites in Ontario could lose up to 14% of their income over five years due to growing online activity.
According to critics, this puts many physical locations at risk, especially in areas where casinos play a central role in the local economy.
Job Loss Concerns
Opponents of iGaming warn that fewer people visiting casinos means fewer jobs — not just for dealers, but also for hotel staff, restaurant workers, cleaners, and security. They argue that this shift hits local economies hard, especially in smaller towns.
According to NAAiG, thousands of jobs could disappear by 2029. Ohio is expected to lose nearly 2,900 roles, Louisiana over 2,600, and Mississippi around 1,900. In New York alone, casino-related wages could fall by $450 million, with Illinois losing close to $300 million. Critics say this loss of income has a knock-on effect across entire communities.
Tax Revenue Risks
Another point raised by critics is that iGaming might not bring in as much tax money as many expect. They argue that when people move from in-person betting to online, states often collect less per dollar spent.
The NAAiG-backed study points to states like Louisiana and Maryland, where tax revenue could actually fall as spending shifts online. In these cases, digital gambling doesn’t fully replace the taxes lost from physical casinos.
Arguments in Support of Online Gambling Expansion
Some say the rise of online gambling could actually help the industry grow rather than hurt it. Their position is backed by new research and case studies from states where iGaming has been used for years. Below are the four key points often raised in favour of expansion.
Positive Revenue Trends for Physical Casinos
A study by Eilers&Krejcik Gaming (EKG), commissioned by iDEA Growth, found that land-based casino revenue actually increased after the launch of legal online gambling. States with both options saw an average quarterly gain of 2.44% (iDEA Growth, 2024).
Proponents say this shows that online betting does not replace physical casinos, but supports them. iDEA Growth argues that iGaming brings in new players, builds interest, and can drive traffic back to in-person venues, especially when both are linked through licensing or shared promotions.
Broader Economic Benefits
Supporters argue that legal iGaming helps state budgets by adding a new stream of tax income. According to iDEA Growth, states that legalize online casinos may see a 1.7% annual revenue boost (iDEA Growth, 2024).
They claim this extra income can support public programmes and help preserve jobs tied to both digital and physical operations. Some also say that regulation brings clarity to a market where untaxed offshore sites have been active for years.
Consumer Protection and Regulatory Oversight
Supporters of legal iGaming argue that bringing the market under state control leads to stronger protections for players. According to iDEA Growth, regulated platforms are far better at enforcing age limits, tracking risky behaviour, and offering tools like deposit limits or self-exclusion (iDEA Growth, 2024).
They point out that in unregulated spaces, often run offshore, none of these safeguards are guaranteed. By legalising and supervising online betting, states can set clear rules, reduce fraud, and give players access to proper support. Proponents believe this approach offers a safer alternative to the “grey market” many users rely on today.
Economic Implications
Some states are opening the door to online gambling, setting up taxes and licences to bring in money. Others are holding back, with pressure from casino groups that don’t want more competition.
There’s also debate over tax rates. Online operators often pay less than physical casinos, which some say is unfair. At the same time, more focus is going to ID checks and tools to help people avoid overspending. In Canada, only a few provinces have made clear moves. Ontario has the most active model so far, while others are still watching how it plays out.
What These Conflicts Suggest About the Future
More people now prefer to gamble online. This shift is pushing the industry to adapt. Some believe it could lead to new business opportunities. Others are worried about lost jobs, lower taxes, and harm to people who struggle with gambling.
This conflict points to deeper changes — not just in how people bet, but in how governments respond. Some regions move quickly to regulate and tax online gambling, others take a more cautious path.
What’s clear is that the sector is in transition. The future will likely depend on how well different interests: economic, social, and regulatory are balanced. It’s not about one side winning. What comes next will likely involve small steps and finding common ground. This shows the industry is still trying to adjust to how people gamble today.