Wednesday August 29, 2018 - 13:51:58 GMT
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How Gambling Industry Impacts the Economy
Online gambling is worth more than $37 billion, barely two decades since the industry started. Land-based casinos are not struggling either. The US earned $81 billion in revenues from brick and mortar casinos in 2013.
By 2020, iGaming is expected to rake more profits than most fortune500 companies—summarizing just how lucrative the gambling industry has become. When you consider the impact made through jobs, construction, and other supporting sectors, the industry is undeniably impactful.
Below we break down the important sectors of the economy the gambling industry impacts.
In almost every country where gambling is legal, players must pay taxes. The revenue is deducted and paid to the government every time you win. Casinos also pay a percentage of their gross revenues in tax. In some countries like the UK, casinos pay a tiered level of taxes.
In Germany, France, and Austria, casinos pay up to 80% of their gross revenue in taxes. In Russia, the companies pay monthly fees. When put in numbers, countries earn billions of dollars every year from the taxes. The US, China, the UK, Australia and Russia attract some of the largest revenues from gambling.
The average online casino employs 20 people. Land-based casinos employ up to 1000 people. Around the world, millions of people depend on the industry to earn a living. All these people have families or contribute to their countries’ economy variously. Nearly all of the workers also pay taxes to their governments, money used to boost the economy.
In Malta, the Mediterranean island where almost every new online casino wants to get licensed, employment in the industry increased by 16% in 2017. By the end of quarter one last year, 13% of the Maltese economy came from online gaming.
There are now more than 6000 people employed in the gambling industry in Malta, a country of 437,000 people. In the US, an estimated 200,000 people in Las Vegas earn a living through direct employment by wagering companies. When you add professional gamblers, the number jumps to more than 500,000 people.
Boosts Surrounding Businesses
Before online betting companies became popular, casino tourism was a big thing. In cities like Atlanta, Las Vegas, and Macau, people still flock to explore entertainment joints. Visitors spend millions of dollars every year not only in the casinos but on surrounding businesses as well.
Most strip clubs in Las Vegas get most of their clientele from casinos. Motels, massage parlors, restaurants, local transportation areas in most cities with casinos tend to benefit immensely from the gambling companies.
Online casinos have an impact on other businesses as well. Think of payment processing companies. Almost every gambling platform works with banks, online payment methods and cryptocurrencies for payments. New casinos UK accept an average of five payment methods and have partnerships with other companies.
Enhances Consumer Spending Options
People need to spend for the economy to grow. The US economy attributes 70% of its revenues from consumers’ expenditure. Without people spending, it’s difficult for any industry to grow. Governments and businesses regularly survey people’s spending habits to identify their buying power.
The casino industry is one of the many areas people spend their money on regularly. Some countries like Australia have a high expenditure rate on casinos compared to Korea. The average Aussie gambler spends $916 annually gambling. The average UK player spends $300.
The option to spend money on leisure activities like online gambling helps create jobs and prevent expenditure on illegal activities. With limited options to spend money on, cash reduces in value. A nation limits its ability to expand its economy and professionals miss out on their dream jobs.
Sometimes people don’t even spend money on the casinos. With online platforms, you can earn free spins without spending any money. You can always spend your cash afterward. But as a beginner, you can visit casino finder and claim free spins no deposit. Later, take a chance gambling more games to win cash and bonuses.
Turns Poor Towns into Cities
Data provided by the American Gaming Association shows that the casino industry contributes more jobs to the economy than the airline industry. When online wagering platforms are accounted for, you get numbers that will make any politician salivate.
Most cities famous for their luxurious casinos or an iGaming supportive government are rich. From Finland to Singapore, Atlanta to Macau, there is a huge economic impact made by the gambling industry. Starting with the construction industry, income from taxes to supporting local retail industries, casino industry-supportive cities tend to grow much faster than all other areas.
Macau, one of the first regions to legalize gambling, earns an average of $32 billion in revenue from casinos. The territory is small, which has helped it turn into one of the most developed cities in Asia. Singapore, one of the fastest growing cities in the world, has a supportive government.
In return, the average citizen spends $900 every year gambling. Economically, Singapore, like Malta and all other cities where casinos are allowed, tends to grow fast.
Reduces Poverty Levels
Where jobs are provided and local businesses supported, there is low poverty. Whether it’s iGaming or brick and mortar gambling platforms, these companies help lower poverty rates where supported. In a study done in Tunica County, Mississippi, poverty levels reduced significantly after gambling was legalized.
From towns once rated as the poorest in the US, the regions became economically sufficient. Locals stopped flocking to receive food stamps and became employed. Some started businesses to support the gambling companies. The local government was a big beneficiary as it started earning revenues as high as $250 million per year.
Jobs rose from 2000 in 1992 to 17,000 by 2005. The number of visitors going to the county increased as more facilities were developed. Entrepreneurs opened a museum, a park, a golf park, while the municipal launched an expo center that attracts 200,000 people annually.
The story of Tunica County is just one of the many regions that have benefited positively by legalizing casinos. The Caribbean, Malta and the UK are also notable for having cities that grew rapidly after gambling companies began opening facilities.
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