Gambling has long been an economic engine for many places on the planet where it has been legalized. You do not have to go far to find examples: Monaco, Macau, Las Vegas – you will be tired of listing them all.
Together with appropriate legislation, the gambling industry has a positive impact on society and the economy and, most importantly, how gambling may influence the development of the world economy.
Analysts estimate global revenues from gambling at $130 billion a year. And all that money is employee salaries, taxes to the treasury, and, of course, tourist fees because legal casinos attract tourists worldwide.
Las Vegas, USA
Probably the most popular gambling Mecca in the world is visited by 42 million tourists every year. Analysts estimate that each of them leaves about $540 at the casino and spends another $380 on lodging, food and other goods – necessary and not so essential.
Overall, casinos bring in $22.68 billion a year to Las Vegas, and total spending by tourists during that period reaches $39 billion. About 160 people work here in the gambling business, and the average annual salary of a casino employee is more than $47,000. As you can see, the treasury and the locals are the primary beneficiaries: after all, the casinos and hotels in the city each year pay about $ 1 billion in taxes.
Las Vegas is not just a place of pilgrimage for players. It is the Mecca of tourism and entertainment, where people from all walks of life come to change the scenery, celebrate stag and hen parties, get early married, and in general – “hang out” in the best sense of the word.
An interesting fact about the American market. A large portion of the players is retirees. Their retirement savings allow them to vacation and spend time in casinos. It is important to note that the consumer perceives this industry as entertainment rather than a means of income in any country where the gambling market is legalized and developed.
Tourism brings about 40% of GDP to the city, with annual revenues from gambling amounting to $37.6 billion. About 20-30% of Macau’s working population work and get paid in the gambling industry, which brings about 70-80% of the city’s budget income.
Casinos also have good figures – they bring in $12.3 billion annually to the city, about 80% of all budget revenues. In this case, the statistics speak so well that any explanation is superfluous.
In the city-state of Monaco, things are a bit more complicated: gambling is prohibited for locals but allowed for foreign tourists.
Each year, casinos in Europe’s smallest countries earn 210 million euros and provide jobs for more than 1,300 compatriots. For example, the share of gambling in the economy of Monaco is about 6% of GDP. Quite a lot, you must agree.
Online casinos in the Philippines are mainly focused on the Chinese market. However, in just a few years after legalization, gambling has reached a profit of $25 billion a year.
The gambling business in the country provides more than 100 thousand jobs and brings $40 million a month to the treasury.
The scale of Gibraltar’s gambling industry is staggering: about 20-25% of gross domestic income comes from gambling. And the tax rate for operators is only 0.15% of income.
Nevertheless, it isn’t easy to obtain a license for conducting such business here. Operators are thoroughly tested for impeccable reputation, good experience and license in another field. In addition, the advertising of casinos in the region is strictly regulated – it must be exclusively truthful.
And gambling companies are also required to pay a fee. Thus, B2B-license will cost 100 thousand pounds a year, and B2C-license – 75 thousand pounds.
The jurisdiction of the UK gambling industry is considered to be the strictest in the world. Companies have to obtain a license from the UK Gambling Commission (UKGC), having gathered a thick document package. The list includes the company’s initial documents and a business plan, and a financial plan for the year – to name a few.
Also, gambling operators in the country need to make a one-time payment of 600 to 700 thousand pounds annually: it varies from 1 to 155 thousand pounds. At the same gambling companies are required to pay tax – 21% of their income.
It is this 15% tax and guarantees the growth of the British economy – because it works in favour of the players, actively developing the industry of gambling. Another advantage of the development of online gambling is the creation of jobs and the reduction of unemployment.