Idea releases counter study to debunk NERA’s iGaming economic research
The organization said NERA research was based on ‘flawed and limited assumptions.’
Key Points
- iGaming positively impacts local and state economies
- Other markets do not need to be concerned about potential cannibalization from iGaming
Trade association Idea Growth has published research that addresses a NERA study on the impact New Jersey iGaming has had on the state.
The NERA study, which was released last year, examined the economic impact of iGaming on the Garden State and found that legalized online gaming “resulted in a $2bn boost to New Jersey’s economy from 2013 through 2018.”
However, Idea Growth said that NERA’s findings were “erroneous” and were “found to be based on flawed and limited assumptions and analysis, severely underestimates the financial benefits iGaming brings to the State.”
The group went on to note that existing research backs up the claim that legal iGaming “does not cannibalize revenue from brick-and-mortar casinos or other entertainment sectors.”
Idea Founder and General Counsel Jeff Ifrah commented, “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.
“The NERA report focuses on the alleged social costs of iGaming. Essentially, comparing these two reports is akin to comparing apples to oranges.”
To analyze the NERA study, Idea commissioned several organizations, which included Meister Economic Consulting, Victor-Strategies and Regulus Partners.
Meister Economic Consulting Principal Alan Meister further explained the results of the NERA study critique.
He commented, “NERA’s study is based on incomplete data, highly speculative and illogical assumptions, a lack of understanding of the US 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.”
Gene Johnson of Victor Strategies echoed similar sentiments and added, “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.”
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