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How iGaming Boosts Land-Based Casino Revenues, A Comprehensive Study Shows



A New Era for Casino Revenue

The digital evolution of the casino industry has sparked a pivotal question: Does iGaming cannibalize traditional land-based casino revenue? Contrary to widespread concerns, a groundbreaking study from Eilers & Krejcik Gaming (EKG) reveals a symbiotic relationship between the two sectors, bolstering the financial health of land-based casinos in the era of online gaming.

Unveiling the Study’s Findings

EKG’s thorough analysis across six US states with legalized iGaming has led to an enlightening conclusion. Following the regulation of online gaming, land-based casinos witnessed a notable 2.44% quarterly revenue uptick. This statistic challenges the narrative of digital platforms detracting from physical casino profits, suggesting a mutually beneficial coexistence instead.

Diverse Player Demographics: The Key to Synergy

One of the study’s pivotal revelations is the distinct consumer base that iGaming attracts. Predominantly younger and male, these online players complement rather than overlap with the traditional casino-going demographic. This diversity in clientele underpins the newfound revenue streams for land-based establishments post-iGaming introduction.

Casino Operators’ Perspectives: No Cannibalization in Sight

Feedback from casino operators further corroborates the study’s optimistic outlook. A unanimous response from surveyed entities indicated that revenues remained stable or even saw moderate increases following iGaming’s introduction. This operator insight is invaluable, dispelling fears of digital platforms undermining traditional casino revenues.


Data Speaks Louder: Reversing the Decline

EKG’s managing director, Matt Kaufman, emphasizes the revitalizing impact of iGaming on the casino market. Historically, mature casino markets have faced declines, yet the advent of iGaming has notably stemmed, and occasionally reversed, this downward trend. This observation is a testament to the adaptive resilience of the casino industry in the digital age.

Different Experiences, Complementary Outcomes

The report elaborates on the distinct experiences offered by online and land-based casinos, highlighting the broader and less time-intensive engagement of online gambling. This differentiation in gaming experiences is crucial in understanding why iGaming does not encroach upon land-based casino revenue, instead fostering a broader ecosystem for gambling.

Addressing Methodological Concerns

Commissioned by iDEA Growth, the study addresses and rectifies previous research shortcomings, offering a robust analysis that counters flawed methodologies. By eliminating errors such as double counting and overlooking pandemic impacts, this comprehensive report lays a solid foundation for informed legislative discussions on iGaming.

Legislative Implications and Industry Advocacy

With iGaming legislation on the horizon for states like Maryland, the study serves as a critical resource for policymakers. iDEA founder Jeff Ifrah underscores the importance of grounding the iGaming debate in factual data, aiding advocacy efforts and legislative deliberations aimed at fostering industry growth.


The Expanding Legal Landscape of iGaming

Currently legal in states such as Connecticut, Delaware, and New Jersey, iGaming’s legal landscape continues to grow, with Rhode Island soon joining the ranks. This expansion reflects a growing recognition of iGaming’s potential to complement and enhance the traditional casino industry.

Conclusion: A Harmonious Future for iGaming and Land-Based Casinos

EKG’s study marks a significant milestone in demystifying the dynamics between iGaming and land-based casino revenues. By highlighting the additive rather than subtractive impact of online gaming, the findings pave the way for a harmonious coexistence that promises to invigorate the casino industry. As more states consider iGaming legislation, this study offers a beacon of insight, advocating for a nuanced understanding of the digital transformation’s benefits to the traditional gambling landscape.

Following the completion of her master's degree in publishing and writing, Amanda embarked on her professional journey as an online editor for a prominent gaming blog. Now, she has smoothly transitioned into the iGaming industry, where she plays a vital role in upholding the highest standards of writing in our news pieces. Working closely with senior management, Amanda ensures that our content meets the utmost quality standards.

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