Mark Stewart

New Study Reveals Economic and Social Risks of iGaming

Published

1 month ago

February 14, 2025

new-study-reveals-economic-and-social-risks-of-igaming

In response to the increasing concerns over the social and economic risks of iGaming, the gaming and entertainment business leaders have joined forces to launch the National Association Against iGaming (NAAiG).

The organization is formed in opposition to the expansion of iGaming and its well-reported economic and social dangers and urges other local businesses, employee unions, and community groups to mobilize in their effort to protect local communities.

A new study for NAAiG by The Innovation Group, a research and advisory firm specializing in gaming, hospitality, and tourism that has previously conducted multiple studies of online gambling for state governments and industry stakeholders, debunks the myth that iGaming offers easy revenue for states. Instead, the study uncovers the damaging effects of iGaming expansion, exposing widespread job losses and significant declines in economic output across multiple states.

Main findings of the report:

Prague Gaming & TECH Summit 2025 (25-26 March)

Land-based casino revenue drops by 16% on average after iGaming is introduced, leading to substantial job losses, hundreds of millions of dollars in lost economic output and reduced tax contributions that fund public services.

States introducing iGaming face significant economic losses, with projected job cuts reaching 4921 in New York and 4733 in Illinois by 2029.

iGaming results in significant losses for states in economic output. All states analyzed would see massive GDP reductions, including Ohio ($602 million), Indiana ($428 million), Maryland ($372 million), and Colorado ($313 million).

States’ net tax gains from iGaming are limited, even before accounting for the increased social costs associated with its high rates of problem gambling and related social ills. For instance, Louisiana, Maryland, and Mississippi could all see negative net tax revenue due to displaced in-person gaming dollars and related impacts on state and local economies.

Brick-and-mortar casinos in every state would face significant revenue losses due to iGaming cannibalization. Projections reach up to $983.7 million in New York, $545.3 million in Illinois, $522.6 million in Ohio, and $342.6 million in Maryland by 2029.

The introduction of iGaming reduces in-person casino employment, with an estimated 2818 jobs lost in Ohio, 2642 in Louisiana and 1906 in Mississippi.

The job losses caused by iGaming will result in massive reductions each year in employee wages and related taxes for states. Annual labor income losses would reach nearly $110 million in Colorado and Maryland, $204 million in Ohio, nearly $300 million in Illinois, and nearly $450 million in New York.

States with iGaming experience an 8.3% decline in distributed gaming revenue, impacting taverns and small gaming establishments.

Projected U.S. gambling losses from iGaming are expected to surpass $1 trillion by 2028, straining local economies and public health resources.

“These statistics underscore the urgent need for action. iGaming’s unchecked access to gambling on cell phones is bad public policy that threatens local jobs and businesses and will cost states. When increased social costs caused by iGaming higher rates of underage and problem gambling are considered, the net tax revenue results are uniformly negative for every state,” said Mark Stewart, EVP & General Counsel of The Cordish Companies and NAAiG board member. “

“Beyond the lack of any real upside for states, iGaming puts vulnerable individuals at greater risk of problem gambling and financial instability. NAAiG is uniting stakeholders to push back and stop the spread of these harmful trends and advocate for responsible gaming policies,” said NAAiG board member Jason Gumer, Executive Vice President and General Counsel at Monarch Casino & Resort Inc.

“iGaming is eroding our communities. This isn’t just about responsible gaming—it’s about protecting local family-sustaining jobs and preventing financial harm. In Maryland alone, iGaming could cost $372 million in economic output, $342.6 million in lost casino revenue and nearly $110 million in annual wages. We must act now to protect our state and local economies nationwide,” said Shannon McCracken, Senior Director of Government Relations at Churchill Downs Incorporated and NAAIG board member.

The post New Study Reveals Economic and Social Risks of iGaming appeared first on Gaming and Gambling Industry in the Americas.

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Pace-O-Matic Granted Access to Eckert Seamans Privileged Logs

Canada

Pace-O-Matic Granted Access to Eckert Seamans Privileged Logs

Published

2 years ago

June 27, 2023

GamingAmericas.com

Pace-O-Matic (POM), a Georgia-based gaming company that does significant business throughout Pennsylvania, today released the following statement following an order from the United States District Court for the Middle District of Pennsylvania granting POM access to Eckert, Seamans, Cherin & Mellott LLC’s privileged logs regarding the representation of casinos against skill games.

“This is a tremendous step in repairing the damage that has been done to not only POM but the thousands of businesses and fraternal clubs benefiting from games of skill,” POM said. “Eckert’s attempts to shield its nefarious behavior have failed once again in a court of law and we are eager to shine the light of transparency on its actions. This is a tremendous victory for transparency and we look forward to exposing Eckert’s efforts to destroy thousands of Pennsylvania small businesses.”

POM’s lawsuit alleges that Eckert Seamans Cherin & Mellott LLC, a Pennsylvania-based law firm, deceived its client, POM, while at the same time representing a Pennsylvania casino that opposed POM’s operations in the Commonwealth and launched lawsuits against POM. When confronted with the conflict of interest, Eckert first denied the conflict, then swore to a Federal District Court they would not engage in a conflict, then continued to work surreptitiously against POM and POM’s interests.

Eckert is a major law firm that has more than 300 lawyers across a network of 15 offices including Philadelphia, Harrisburg, Pittsburgh, Boston, Washington, DC and Richmond, Virginia.

The lawsuit contends that Eckert ‘took up arms’ against POM on behalf of the Philadelphia-based Parx Casino; that Eckert ‘actively participated in and covertly manipulated litigation’ in Pennsylvania Commonwealth Court adverse to POM’s interests and that Eckert participated in a campaign intended to ‘destroy POM’s business by attempting to convince elected and appointed public officials that POM’s games are gambling devices that should be seized and outlawed’. Eckert used its influence to improperly target the Pennsylvania Gaming Control Board.

When confronted by POM’s allegation that Eckert was double-dealing and had breached its professional duties of loyalty and confidentiality, Eckert denied the claim while seeking to shield the law firm’s e-mails with the Parx Casino, which would, if made public, reveal that numerous lawyers at Eckert, led by Mark Stewart, co-chair of Eckert’s gaming practice group, were indeed simultaneously taking money from and representing the Parx Casino.

Parx Casino calls itself ‘the #1 casino in Pennsylvania’ and is owned and operated by Greenwood Racing Incorporated. Eckert, working at the behest of Parx Casino and its consultants, sought to block POM from doing business in Pennsylvania.

The suit also alleges that Eckert ‘violated its most basic fiduciary duties and concealed and misrepresented material facts to POM’s great detriment’. As a result, POM is entitled to appropriate damages.

In November of 2021, United States Magistrate Judge Joseph Saporito, Jr, found that Eckert acted in ‘bad faith’ by seeking to withhold e-mails that demonstrated Eckert was representing both sides.

Eckert, Saporito ruled, ‘actively and clandestinely managed and participated in the representation of Parx in the Commonwealth Court litigation against its other client, POM. Moreover, based on our in-camera review of the purportedly privileged documents, it did so with full knowledge that the conflict asserted by POM precluded its active and continuing representation of Parx in the Commonwealth Court litigation’.

Saporito continued, ‘in light of the clear and obviously intentional subterfuge demonstrated in the purportedly privileged documents, we have no difficulty concluding that these documents evidence an intent by Stewart and Eckert to play fast and loose with the courts’.

Eckert appealed Jude Saporito’s ruling, which required Eckert to turn over to POM many internal e-mails. On July 5, 2022, Federal Judge Jennifer P Wilson ruled for POM, declaring ‘in making inconsistent representations to the court, Eckert has attempted to obstruct the discovery process as to the central issue in this case: whether Eckert breached its fiduciary duty to POM by representing Parx, a party with adverse interests, at the same time that it represented POM’.

POM is a leading developer of legally compliant games of skill in the United States. Its games are played in thousands of small restaurants and bars along with many social halls such as American Legion and Veterans of Foreign War posts. Our games generated millions of dollars in revenue for businesses and clubs in Pennsylvania last year and its games can be found in thousands of businesses, mostly small mom-and-pop shops, along with many social halls.