When other industries faced unprecedented economic challenges, online gambling improved tremendously in the last year.
The coronavirus scourge has had little to no impact on the eGaming industry. Instead, thousands of gamblers signed up with various casino websites.
Today, eGaming is one of the fastest-growing industries in the world. Largely dependent on technology, the online gambling industry has emerged as a major booster for economies.
Countries that once had stringent gatekeeping measures to curb online gambling are now resorting to relaxed legal approaches to allow more players to establish casino businesses. The question is, why and how can the industry boost the economy?
This post explores this subject in detail. If you haven’t played casino games online, take the first leap with South African Casino HEX and get started with some of the best gambling sites and beyond.
Casino HEX is a trusted and reliable review of top gambling sites in Africa, so rest assured of landing some of the best casino offers on the continent.
Online Casinos-A Multi-Billion Dollar Industry
The first step to understanding the eGaming industry is by looking at the real stats.
In 2019, the market value of online gambling was pegged at $50 billion. The latest economic projections for the industry indicate it will be worth $100 Billion by 2026, translating to a 50% growth rate.
Such values mean that there is a lot of potential in the sector, especially in countries where governments still restrict gamblers from joining eGaming platforms.
Since the COVID-19 outbreak, thousands have signed up with different gambling sites. And with coronavirus restrictions still in place in most parts of the world, land-based casinos are still deprived of daily visits.
However, casino houses that own websites have witnessed increased income, thanks to thousands of players taking up the option of playing online. The latest stats show that online gambling revenue hit a massive $66.67 billion despite restrictions of movements that have been in place for the last year.
It is a clear pointer to an increasing rate of online gambling, further driving the industry to new heights.
As more gamblers opt for casino websites, governments have no choice but to regulate the industry.
In a nutshell, the eGaming industry is up there among the biggest winners in the pandemic year. These stats bring up the big question. How can the online gambling industry boost the economy? Let’s explore further.
Online Gambling Industry: A Boost For The Economy
A bludgeoning online gambling industry may be regarded as a curse in some parts of the world.
As millions of youths who have attained the eligible gambling age register with gaming sites, a question of gambling addiction comes to mind.
However, stiffer regulations are being adopted to curb the surging number of online casinos in different parts of the world.
A pandemic year that has wreaked havoc on most economies has forced many governments to reconsider their stand on eGaming.
Emerging gambling jurisdictions in Latin America are a perfect example of expected changes in gambling laws in countries that traditionally outlawed eGaming.
While Columbia, Bolivia, and Argentina have introduced player-friendly gambling laws, Brazil is fast moving towards a more open online gambling sector.
These changes are welcomed, especially when it is becoming increasingly impossible to restrict internet use.
Here are notable ways in which the eGaming industry can boost the economy.
Online Gambling Is A Source Of Employment
Thousands of eGaming sites have flooded the web. While many are fake, only meant to fleece unsuspecting gamblers, genuine gambling sites have become sources of employment.
In this regard, think about hundreds of software developers and gaming operations that run these sites.
Casino websites require daily maintenance and management, a task that requires skilled software engineers and programmers.
More employment opportunities translate to more revenue for governments.
In a more regulated gambling environment, online casinos reduce the unemployment rate.
Other notable skills required in the gambling industry include accounting, cyber security, and marketing.
Source Of Revenue For Governments
The eGaming industry is fast-speeding towards $100 billion in market value. Increased market value means more money for the government.
In countries where the gambling industry is properly regulated, it has become part of a structured revenue stream for the government. Revenue generation from online gambling is collected in many different ways.
First off, gambling entities pay corporate tax accruing from total revenue every month or yearly, depending on a country’s tax laws. Secondly, employees in the gambling sector also pay income tax, which further boosts revenue collection by governments.
Moreover, game developers and operators equally pay taxes from their earnings. More revenue for the government means more development projects.
Taxing gambling stakes or winnings is another way through which online casinos boost the economy of different countries.
Kenya is a perfect example where the government charges 7.5% excise revenue on betting/gambling states and a further 20% withholding tax to raise its revenue.
While some players have complained about an unfriendly business environment due to the high taxation rate, most of them have since resumed operation in a country that is fast becoming a top gambling destination in Africa.
And to curb gambling addiction from snowballing into a social problem for youths, stricter measures have also been introduced to reduce instances of gambling-related mental health problems.
Also, read why President Buhari is likely to present Nigeria’s fiscal budget this month.
A Boost For Technology
Admittedly, there cannot be online gambling without technology. Technology has become a vital economic pillar for developing countries in the 21st Century.
Notably, online casinos help drive the technology agenda forward because they rely on the internet to grow and expand.
For example, 5G and Smartphone technology have become integral components of eGaming, furthering the quest for digital migration.
With most countries facing economic meltdowns post COVID-19, the reconstitution of gambling laws has become urgent.
Online casinos have become important targets for governments in different parts of the world that seek to improve revenue collection.
Employment creation, technological advancement, and revenue generation are the economic hallmarks of embracing a more vibrant and regulated eGaming industry.