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Gambling and economy

Up until a few years ago the classic case of gambling would be to head out to some of the most popular Las Vegas casinos and hit the tables, hoping to win big. But the truth is that gambling has changed a lot and is slowly, but surely, moving on to a digital format. Today online casinos are the leaders when it comes to gambling, offering players perks which land based casinos never could. What’s interesting to note is the fact that online casinos also attract players who have never set foot in a land based casino or even placed a bet. This is mostly due to the mobile casino apps which they offer and new technologies, like VR. This migration undoubtedly has its affects on the global and local economy as well.

Latest reports on the issue

All reports gathered in the past year predict a steady growth of the online casino industry. It’s forecasted that from 2018 to 2022 the growth will reach a pretty high 5.9% and will bring in revenue of a whopping $565 billion. The numbers don’t lie and we can see an increase in new online casino operators which are appearing on the market on a pretty much monthly basis. But growth needs to come from customers, so what in fact drives the players to the casinos? Well for starters we can witness a boom in the mobile casino sector. All operators today offer a mobile casino platform, with mobile casino apps from the most reputable ones. This drives a new generation of players which find this industry interesting and are drawn to the perks the casinos offer. We can also witness an increase in female players as well, as well as a big interest in VR gambling. This is predicted to be the biggest growth in this sector, counting as a quarter of the total growth in this area.

Steady rise of mobile gambling

In the past most players preferred to play at the casinos or slot sites by using instant play or download mode. But as world technology progressed the casinos began to focus more on mobile play. This turned out to be a very smart move, since mobile gambling transactions rose by 95% last year alone. This makes up for almost half of all gambling transactions made on a global level. Mobile gambling brought players closer to the online casino experience. They can now easily access every online casino, make a payment via their mobile device and play the casino games.

Statements against casinos

There are certain statements from opposing parties which speak against the advantages of economic growth of online casinos. For many of them this industry is damaging and can in fact have a negative impact on the economy. Their arguments speak that the actual profits will be only distributed among a small number of individuals. Some of their most compelling factors are:

  1. Poverty among the lower and middle class
  2. Money laundering and tax evasion
  3. Illegal activities by the casinos themselves
  4. Increase in suicides and anxiety among problem gamblers

These statements do hold some truth, but it needs to be known that online casinos today offer a standardized service and the industry is highly regulated. This makes the possibility for shady schemes extremely low. In the end the players themselves benefit from this by playing at regulated casinos with a fair chance in winning.

Opportunities which online casinos offer

It’s no secret that gambling can have a positive impact on the local economic growth. The best example for this is in the United States, brought on by the legalization of gambling. It can be seen that the areas which house gambling establishments have a higher economic growth, offer more employment opportunities and directly impact the wages for the surrounding businesses. This is pretty much the same case for online casinos. They give a lot of your entrepreneurs and professionals the chance for employment. For example, many online casinos will give young developers, marketing specialists and support agents a chance to get a good job with a competitive salary. Other sectors in the industry are already saturated, but the online casino industry is always looking for new talents.

Online casinos and taxes

It’s safe to say that many countries bring in a lot of their revenue from gambling establishments. In the USA this is the case with Nevada and Massachusetts. Casinos in Nevada generate a quarter of their yearly income tax. In Massachusetts the legislation was lessened by collection of income tax from casinos, which helped the local economy. Furthermore it’s much easier to calculate and gather the tax from large establishments like casinos, which means less audits and spent funds on the evaluations.

Predictions for the future

Like we mentioned in the beginning online gambling is only predicted to grow. Some countries already see the potential online casinos can have for the economy. We can already see millions of dollars spent on computers and smart phones. If you add the new army of millennials which will hit the casinos, the potential for income is massive. It would be foolish not to capitalize on this industry and go with an outdated thesis that e-gambling establishments can’t be taxed transparently.

In Conclusion

The facts are that the world is changing fast and with it different industries grow exponentially. Las Vegas was once the gambling capital of the world, but for many millennials today that’s an archaic form of gambling. Yes, the economic growth the casinos had on the city local economy was enormous and Las Vegas wouldn’t be what it is today without them.

But online casinos today do what Las Vegas could never do. They bring in millions of people across all corners of the world to the computer or mobile phone, making real money deposits and playing the casino games. The smartest move today would be to further regulate the industry and use the taxation benefits to help the local economy. Online casinos are the way of the future and we need to keep up.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.

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