The online gambling industry is booming. In fact, the global online gambling market is expected to reach $81.7 billion by 2022 and over $110 billion by 2025. So, how does this industry affect national economies is a question that comes naturally.
Well, there are several ways in which online gambling can positively impact the economy. Some of those ways include creating jobs and increasing tax revenue for the countries that have regulated the activity.
Would you like to discover more about remote gambling and its impact on the economy? If so, this blog post will take a closer look at each of the factors. It will also highlight the positive as well as the negative aspects arising from it.
Creating More Jobs
The latest figures show that the list of online casino operators counts over 2,000 gambling destinations. To operate properly, all these casinos need people. Hence, the online gambling industry is creating thousands of jobs. Market researchers estimate that the global online gambling market will create over 430,000 jobs by 2022.
This is excellent news for any economy, as it helps to create employment opportunities. Not only does this help to boost the economy, but it also helps to improve the living standard of the people residing in the region. Many of the jobs come with competitive salary packages and advancement opportunities.
With Covid-19, land-based casinos had to close their doors for months. Globally, casino companies lost millions in revenue due to the implications of the pandemic. Yet, online casinos continued to work. This shows how resilient the industry is.
It’s also vital to highlight that these jobs aren’t just for live dealers or customer support agents. Instead, there are positions for software developers, mobile app developers, affiliate managers, compliance managers, and all other types of jobs. So, there are various options for professionals with different profiles and skills. Moreover, these jobs often provide remote working options, so they are open to anyone regardless of their location.
New Source for Tax Revenue
Online gambling can generate a lot of tax revenue for governments. For example, in Malta, the tax revenue from online gambling accounts for around 14% of total government revenue. This is a significant amount of money for Malta, a major hub for online gambling. For example, in the United Kingdom, the total betting and gambling tax income in 2020/2021 was impressive at £2.8 billion.
Naturally, tax revenue from online casinos goes a long way in helping fund government and state programs and initiatives. This is a win-win situation for everyone involved. Users get access to regulated and safe iGaming action, while the country collects lots of money that goes into improving the lives of all residents.
Increased Fraudulent Activity
However, with any industry comes a certain amount of risk. Unfortunately, online casinos are susceptible to fraudulent activity. This can include anything from players cheating the system to casino operators rigging games in their favor. Moreover, strict national regulations sometimes drive consumers to play at offshore gambling sites.
This can have a negative impact on the economy, as it can lead to a loss of revenue for governments and casinos alike. It can also harm the reputation of the online gambling industry as a whole, which could have a long-term impact on its growth.
The advent of online casinos has seen an increase in player addiction rates. This, in turn, harms the economy as a whole. When people become addicted to gambling, they tend to spend more money and time on betting than they can afford. It can lead to financial instability and even bankruptcy. In extreme cases, some people have even resorted to stealing or fraud to get money to gamble with.
Furthermore, gambling addiction also has some negative social consequences. It can lead to family breakdowns, job loss, and depression. All of these factors have a negative impact on the economy as a whole. Governments have to create additional resources to battle gambling addiction, which in turn reduces the budget for other essential programs.
However, experience has shown that investing in responsible operations actually leads to lower gambling addiction rates. An excellent example of this is the UK, where strict regulations have led to a problem gambling rate of only 0.3% in 2021. By comparison, this rate was at 0.6% only a year ago.
As you can see, online gambling can positively impact the economy in several ways. It opens job opportunities for people with different career paths in mind and generates millions in tax revenue. Yet, it’s important to note that this industry is not without its risks like potentially higher problem gambling rates and fraudulent behavior.
That’s why governments should introduce regulations that ensure these negative side effects are minimized. If that’s properly handled, any country with a regulated iGaming market can enjoy all the benefits that come with it.