Gambling is one of the popular ways to pass the time and feel the adrenalin. People in various parts of the world want to take a risk and try their luck in one the gambling games. However, not every country legally allows such business and activity.
The industry of gambling has changed in recent years. The number of fans keeps growing, as well as the number of gaming venues. Many governments had to reconsider their attitude towards the issue to get some sort of control over the industry and provide protection to their citizens. Surely, it’s not the only reason for the tendency to the legalization of gambling across the world.
The gambling industry has an impressive influence on the economies of different countries. Besides, the market keeps growing by 11% every year. In this article, we’ll examine the main reasons for the growth of the industry and its impact on the economy.
Why is the gambling industry growing?
The industry of gambling is quite old. However, people used to enjoy gambling games only in special gaming clubs. In many countries, such venues were closed, while businesses were forbidden. Due to this, the number of fans of gambling seemed to become lower. However, it’s not completely true.
The development of the Internet made it possible to play diverse gambling games, bet on sports, and play cards on the network. Thus, millions of punters got a chance to demonstrate their skills to the opponents living in various parts of the world.
As soon as Internet casinos became accessible from home, their popularity started growing. It’s easy to explain because it’s obviously more comfortable to take risks from a convenient place rather than visiting a land-based venue. Besides, iGaming became a kind of adrenalin hobby, which doesn’t require equipment and much time.
Another wave of interest in gambling was noticed after the total lockdown. Due to the situation with Covid-19, people across the globe were forced to stay at home. Everything they had was the walls of their homes and PCs. Many of them even worked from home. That was a nice basis to go mad. However, people still found a way out. Many of them just started gambling.
Such a boom in popularity made the iGaming business very profitable. Thus, the number of gaming venues started dramatically growing, offering diverse options and bounties to attract as many punters as possible. As a result, the competitiveness in the market turned out to be significant.
The market keeps growing. Due to this, many governments got more concerned about the legalization of the issue. Besides, gambling now has a huge influence on the social and economic aspects of life.
The social influence of gambling is mixed. When speaking about uncontrolled activity, it’s likely to make more harm because vulnerable layers of society might have access to gambling games (kids, people with problems, etc.). Besides, the cases of fraud are very frequent when there’re no commissions to check and certify gaming clubs. The influence might vary from country to country and from period to period.
Legalized gambling, shows a more positive image. To sum it up, we can demonstrate the general tendency in its social impact:
|Crime||Thanks to legalization, the criminal rate demonstrates a positive tendency by becoming lower. Illegal gambling activity also becomes rarer.|
|Employment||The industry allows creating of more jobs, thus, making the unemployment rates significantly lower.|
|Free time activity||People get access to a new hobby, which doesn’t require visiting any venue.|
|Problem gambling||As the industry becomes officially controlled and special commissions are created, the issue of problem gambling also becomes manageable. Special organizations to support people having such an addiction are created. Besides, gaming facilities have to be more attentive to the issue of responsible gambling.|
|Inequality||It isn’t so obvious but legalized gambling allowed countries to make socioeconomic inequality not that acute.|
Economic Winners and Losers of Legalized Gambling
How does gambling affect the economy? The key positive impacts are as follows:
- An impressive capital inflow. Casino operators have to pay taxes and other fees. Thus, the government can get finances directly or indirectly from gaming clubs. For instance, casino operators have to pay for licenses and other issues.
- Positive changes in public services. Due to the increased revenue of the governments, they have a chance to improve various spheres of life.
- The introduction of new infrastructure (gaming clubs, roads, communications). It has a positive influence on community welfare.
- Many new businesses can appear on the market to offer an alternative to people.
There’re also certain negative aspects, which are mostly connected with investments in the legalization and organization of the gambling or online gambling industry. The necessity to create special commissions will require finances from the government. Besides, it might be necessary to organize certain infrastructure and testing measures to ensure a certain gaming club meets the requirements. Such things can also affect the amount of taxes people pay.
In addition, the legalization of gambling can make winners pay a certain percentage of their rewards. In some cases, casinos are set to be tax agents.
In general, we can say that gambling is good for the economy. It brings many financial advantages. However, it’s more beneficial for the government than for punters or operators because the regulatory system isn’t always well-thought-out. At the same time, if it’s good enough, gamers can enjoy secure access and full protection of their money, data, and mental health.
Where the Gambling Market is Likely to Expand
Experts claim that economic benefits from gambling are more obvious in developed countries. Such states have a high level of life and don’t have to face problems, which developing countries do. The following countries are likely to watch the expansion of the industry in recent years:
- South Africa. In this country, sports betting is the most popular issue. Traditional gambling activity also started to grow in 2020. And the tendency is predicted to be the same in the following years.
- Asia-Pacific area. Macau and Singapore are 2 regions, thanks to which gambling is flourishing. However, there’re so many potential punters in China, where the activity is forbidden. If the government changes the policy concerning gambling in the nearest time, the market will dramatically grow.
- Europe. The region becomes more indulgent in what concerns gambling. Many countries have already legalized the issue. One of the prominent examples is the UK, where gambling is fully controlled. The country has a perfect management system to regulate the industry and provide high-quality services.
- North America. The potential of this region is impressive. By now, New Jersey has the fastest-growing market. However, Canada and Mexico are likely to have the industry expand soon.
- Oceania. The number of punters in Australia is great. While the online gambling business isn’t still allowed, offshore online casinos for Australia can legally offer services to Aussies. The government of the country becomes milder over the years. For instance, lotteries and bingo are allowed now.
Does gambling help the economy? Obviously, it does. It adds to the revenue and can improve many spheres of life. At the same time, social benefits and drawbacks should be also taken into account. Besides, the regulatory system should be carefully built to ensure the operators offer really quality options. In general, many countries keep working on the legalization of the issue. And we can expect more countries to create their regulations to manage the gambling business and activity.