A recent Deloitte study showed that the Ontario regulated online casino industry positively impacted the province’s economy, namely in job creation and government revenue. It also showed what New York online casinos could bring to the state and its residents.
Ontario iGaming launched in April 2022. Deloitte’s study assessed the economic impact of its second year in operation and found that the still-growing industry accounted for:
- 14,935 full-time equivalent jobs
- $1.24 billion in new government revenue
Study dispels NY labor union’s claims
Despite recent momentum for online casinos in New York, several detractors still stand tall along the path to legalization.
Sen. Joseph Addabbo, a longtime supporter of the issue, filed a bill to legalize NY online casinos in 2024, which met opposition from the New York Hotel and Gaming Trades Council (HTC).
The HTC said it could not support the bill as it would cannibalize jobs. That statement contradicts Deloitte’s data from Ontario.
Additional concerns exist surrounding the cannibalization of land-based casinos.
However, the data suggest otherwise here, too.
An Eilers & Krejcik Gaming report showed the nation’s six states with online casinos had 2.44% quarterly revenue increases at in-state land-based casinos after those states passed iGaming legislation.
Ontario sustains almost 15,000 jobs, up 23.7% in Year 2
The 14,935 iGaming jobs in Ontario represented a 23.7% increase from the industry’s first year, which sustained just over 12,000 jobs. Ontario online casinos contributed $2.7 billion to the province’s GDP in year two.
As a result of these triumphs, Ontario’s iGaming market is close to reaching many of Deloitte’s five-year projections in two years:
- Direct jobs sustained (120% of five-year projection through two years)
- Government revenues (94%)
- GDP contributions (93%)
- Total full-time jobs sustained (92%)
Ontario Attorney General Doug Downey said in a statement:
“Our made-in-Ontario igaming sector is being recognized internationally for its success as a leader in this space. … Our igaming sector is not only a job creator here in Ontario but it shows the world our ongoing commitment to building a sustainable and responsible igaming industry.”
New York has a larger population and a more prominent economy than Ontario. Its $1.78 trillion GDP in 2023 ranked third in the US, behind Texas and California.
All signs point to New York online casinos producing better iGaming numbers than Ontario, including the job sector.
Online casinos a possible solution for many problems in New York
Despite Addabbo and other proponents’ efforts falling short so far, New York online casinos could have another angle toward legalization.
PlayNY learned that Gov. Kathy Hochul could call for a special legislative session as soon as July to look for ways to fund the Metropolitan Transportation Authority (MTA). The state faces financial problems and is behind on many construction and infrastructure-related projects.
Downstate casinos around New York City were supposed to generate at least $500 million toward MTA funding per each casino’s licensing fee. However, the state is behind in the licensing process and doesn’t expect to decide the winning bidders until the end of 2025.
Legalizing online casinos would present an actionable and immediate solution to fund many of these problems.
New York is already the top legal online sports betting market nationwide, providing a glimpse into the state’s potential iGaming revenue. Furthermore, iGaming revenue exceeds sports betting revenue in all legal markets that offer both.
If you connect the dots, New York online casinos make sense in every way.
