The online gambling debate continues to intensify among U.S. casino operators as the 2025 legislative season unfolds, raising the question of whether it represents a growth opportunity or a threat to brick-and-mortar casinos. 

Industry giants like Caesars Entertainment, MGM Resorts, and Penn Entertainment strongly support iGaming expansion, arguing it enhances traditional casinos. Meanwhile, regional operators such as Churchill Downs and The Cordish Companies oppose the move, fearing it will cannibalize in-person gambling and reduce revenue from other on-site services. 

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Fear of The Unknown 

While supporters argue that online casinos could generate much-needed tax revenue, opponents fear they will draw business away from brick-and-mortar venues, putting thousands of jobs at risk. 

One of the most vocal critics of iGaming expansion is the Hotel & Gaming Trades Council in New York, which represents casino workers. More than 700 employees of Resorts World Casino, a racino at Aqueduct Raceway, sent a letter to state Sen. Joseph Addabbo Jr., warning that iGaming could siphon revenue from physical casinos, potentially leading to job losses. Addabbo, a key advocate for online casino legislation, has faced strong opposition from unions and lawmakers, including Gov. Kathy Hochul, who has yet to endorse the proposal.  

Meanwhile, in Louisiana, The Cordish Companies, which recently celebrated the opening of their Live! Casino & Hotel Louisiana, are actively opposing iGaming. The company argues that legalizing online casinos would divert revenue from physical locations, decreasing foot traffic and limiting reinvestment. 

They also caution that a decline in in-person gambling could result in layoffs, further impacting the state’s economy. Despite operating online casinos in Pennsylvania, Cordish maintains that iGaming would harm Louisiana’s land-based casino industry rather than support it. In response to these concerns, some industry experts have suggested a compromise—ensuring that any iGaming legislation includes provisions to protect retail casino jobs. However, until lawmakers, unions, and casino operators find common ground, the future of online gambling in America remains uncertain. 

Increased Social Costs 

Beyond concerns about job losses, opponents of online gambling legalization also warn of increased social costs, particularly higher rates of problem gambling. They argue that the rapid expansion of legal sports betting across the U.S. provides a clear warning of the risks posed by unrestricted online gambling access. 

Since sports betting was legalized in 38 states, reports of gambling addiction have surged, with public health experts warning that the industry’s rapid growth is fueling a crisis. Young adults, in particular, have been identified as a vulnerable demographic, as the ease of mobile betting has made gambling more accessible than ever. Additionally, professional athletes and sports officials have reported a rise in harassment from bettors, further illustrating the negative consequences of widespread gambling availability. 

Critics highlight that sports betting companies, sports leagues, and media networks have formed an intricate ecosystem that keeps players engaged 24/7, using AI-driven algorithms to ensure constant access to betting opportunities. They argue that if online casinos follow a similar trajectory, problem gambling rates will escalate even further, leading to financial distress, mental health struggles, and strained family relationships. 

Pro iGaming Movement

On the other hand, supporters of iGaming argue that online gambling enhances, rather than undermines, traditional brick-and-mortar casinos. They point to states where both models operate successfully, claiming that online platforms attract new players who may eventually visit physical casinos. Proponents also emphasize the growing presence of unregulated offshore gambling sites, arguing that legalizing iGaming provides a safer, more controlled environment while generating additional tax revenue. 

Industry leaders believe that online gaming can expand the overall market by increasing engagement and accessibility. They argue that digital platforms create new opportunities for player acquisition and retention, which can ultimately benefit land-based casinos. Additionally, some claim that the integration of online gaming with loyalty programs and casino promotions encourages crossover play, strengthening both online and in-person gaming sectors. 

Trade groups and gaming alliances have testified in favour of iGaming, highlighting its economic benefits and potential for growth. They stress that regulated online gaming can provide consumer protection while boosting state revenue, making it a win-win for both players and casino operators.