New Study Reinforces the Positive Impacts of Legal iGaming in New Jersey
WASHINGTON–(BUSINESS WIRE)–iDEA Growth (iDevelopment and Economic Association), the leading trade association for online gaming in the U.S., today released research that strongly refutes NERA’s erroneous findings regarding the economic impact of legalized iGaming in New Jersey. NERA’s study, found to be based on flawed and limited assumptions and analysis, severely underestimates the financial benefits iGaming brings to the State.
iDEA commissioned Meister Economic Consulting, Victor-Strategies, and Regulus Partners to analyze the NERA study, which was released in late 2023. Commissioned by the Campaign for Fairer Gambling, NERA’s study critiqued a 2019 study by Meister Economic Consulting and Victor-Strategies (commissioned by iDEA). The 2019 study found that legalized iGaming resulted in a $2 billion boost to New Jersey’s economy from 2013 through 2018.
iDEA’s 44-page study, “A Comprehensive Analysis of NERA’s Study on New Jersey’s iGaming Economic Impact,” details five key areas in which NERA’s analysis does not conform to research best practices and relies on simplistic methodologies that are misleading and inaccurate, including:
- NERA based its wage data on information from only two licensed operators over three years when, in fact, there were many more licensees operating over a longer period with multiple brands and platforms and a wide variety of wage offerings.
- Existing research shows that iGaming does not cannibalize revenue from brick-and-mortar casinos or other entertainment sectors but, in fact, complements it. NERA erroneously claims the opposite and ignores the reality that legal iGaming redirects revenue away from illegal online gambling sites.
- It is nearly impossible to quantify iGaming’s social costs, yet NERA purports to do so based on a single, discredited 2023 British study, applying dubiously derived and inflated social costs from a European country to the U.S. market.
“NERA’s study is based on incomplete data, highly speculative and illogical assumptions, a lack of understanding of the U.S. gaming industry, faulty methodologies, and a flawed study that does not even apply to New Jersey, ignoring decades of existing literature and research on the subject of social costs of gambling,” said Meister Economic Consulting Principal Alan Meister.
“Unlike the NERA report, the Meister Economic Consulting, Victor-Strategies, and Regulus Partners study focuses on the economic impacts of online gambling by evaluating a wide cross-section of data from multiple sources,” said iDEA Founder and General Counsel Jeff Ifrah. “The NERA report focuses on the alleged social costs of iGaming. Essentially, comparing these two reports is akin to comparing apples to oranges.”
“NERA’s study on the economic impact of iGaming in New Jersey is deeply flawed and cannot be relied upon to inform public policy or business decisions. Our comprehensive review, supported by copious industry data and research, demonstrates that NERA’s conclusions are inaccurate and misleading,” said Gene Johnson of Victor Strategies.
“The 2019 Meister Economic Consulting and Victor-Strategies study, which NERA attempted to refute, employed a robust methodology and complete data set to comprehensively assess the positive economic impact of iGaming in New Jersey. The findings of the Meister Economic Consulting and Victor-Strategies study remain valid and provide valuable insights on the benefits of regulated online gaming for the state’s economy,” Ifrah added.
The Meister Economic Consulting, Victor-Strategies, and Regulus Partners study “A Comprehensive Analysis of NERA’s Study on New Jersey’s iGaming Economic Impact” can be found here and a summary here.
For media inquiries or to arrange an interview with iDEA Founder Jeff Ifrah, email media contact Denise Nix at denise@ideagrowth.org.
iDEA Growth (iDevelopment and Economic Association) is a 501(c)6 association seeking to grow jobs and expand online interactive entertainment business in the United States through advocacy and education. iDEA provides the latest industry news, updates and legislative activity on the expansion of iGaming in the United States and its significant economic benefits. iDEA serves as a resource to the media, elected officials, and the public.
Meister Economic Consulting is an economic consulting firm that specializes in the application of economic research and analysis to public policy, litigation, regulatory, business development and operations, and economic development matters. Our work is grounded in sound economic and financial theory, guided by extensive industry knowledge, supported by relevant data and market research, and customized to the circumstances of each matter. Our staff have over 50 years of experience analyzing the gaming industry.
Victor-Strategies is a unique professional firm providing expert advisory services and critical business insights to the gaming industry, with a particular focus on new gaming technologies. We are dedicated to providing governments and industry leaders with the strategies, tools, data, and expertise essential for informed decision-making and effective operations.
Regulus Partners is a global strategic advisory business focused on the gaming, betting, sports, and leisure sectors. We bring a data-driven and research-based approach to understanding markets and addressing challenges.
Contacts
Denise Nix | denise@ideagrowth.org
