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Cannibalization Argument Debunked by Detailed Report Into Casino Revenues

Feb. 15, 2024 (Washington, D.C.): iDEA Growth (iDevelopment and Economic Association), the leading trade association for online gaming in the U.S., has commissioned groundbreaking research from Eilers & Krejcik Gaming (EKG), which reveals that, in addition to adding a revenue stream for land-based casino operators, iGaming helps boost revenue from operators’ brick-and-mortar properties. 

As part of the project, the EKG team dissected a research note by Deutsche Bank, which overlooked some key factors, and a study on iGaming by The Innovation Group, which used a flawed methodology when considering potential cannibalization. The 32-page EKG report “Comparing Online and Land-based Casino Gaming” is the most comprehensive research projects ever conducted on the effects of the introduction of online gaming on the land-based casino industry.

iDEA Founder and General Counsel Jeff Ifrah commented: “This study offers compelling evidence that online gambling is a catalyst for growth, not a competitor to land-based casinos. The research underscores the conviction that legalizing it drives beneficial economic impact across the industry. As lawmakers consider the merits of legalizing and regulating iGaming, they can be assured that it will complement the land-based casinos to deliver even more tax revenues to their states and establish meaningful consumer protections.”

The in-depth study of online and land-based casino revenues reveals an average quarterly revenue boost of 2.44% from the introduction of iGaming across the six U.S. states that have regulated the activity.

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