Summary:
- The study was commissioned by the Anne Arundel County Chamber of Commerce
- The goal was to determine the effect of iGaming.
- Casino revenues and jobs would reportedly be negatively affected.
As online gaming is being considered in several US states, studies are being conducted to see how online services would affect certain areas.
In Maryland, the Sage Policy Group just released a report that details how land-based casinos and employment would be affected if online casino gaming were allowed in the state.
Essentially, the study proved that there would be a slight negative outcome with the legalization of iGaming.
More Details on the Study
The Anne Arundel County Chamber of Commerce commissioned the study to determine the effect of legal iGaming in Maryland. Currently, casinos are vital in the state though recent figures saw revenues decrease year on year in December 2023 depitep providing employment and contribute to public education and other programs.
Casino physical-based jobs include managers, dealers, chefs, food service, employees, hotel staff, etc. These jobs are important to the state, and online casino gaming would not require state-based employment. Supposedly, the study found that if online gaming were to be legalized in the state, it would cut down the number of jobs within casinos.
The study showed that in-person gaming dropped by around 8% from 2019 to 2022 in states with legalized online casino gaming, while states that did not saw a 2% increase. While the study supports this, I would like to point out that this time frame includes the height of the COVID-19 pandemic when players stayed home and logged online in higher numbers due to the virus.
Casinos were also closed, which led to more online play. A better percentage would be achieved if the study did not include 2020 and 2021.
The Effect on Employment and Problem Gambling
The study further mentions that there will be a broader effect on the sector, with a decrease in job opportunities for those who are non-college educated. People in this category can earn sustainable wages by working in the land-based Maryland casino industry.
The study shows that fewer jobs would be available, and nearby retailers would also be affected due to lesser foot traffic to the venues.
Concerns have also been raised regarding an increase in problem gambling behavior. Online gambling is more accessible, which could lead to a higher potential for addiction.
These are common arguments that arise in any state where online casino gaming legislation is on the table. It is important to note that New Jersey, Pennsylvania, Michigan, and West Virginia have all been quite successful in iGaming and have not seen a major decrease in employment or gambling addiction, as appropriate measures were taken to ensure the land-based industry remains stable.
About the Author
