It’s no surprise that gambling has an impact on the economy. If you combine the different pieces of the pie i.e. bingo halls, online gambling betting shops, you will realize that the industry is responsible for a lion’s share of the country’s revenue.
In fact, a new report has revealed that the gambling and betting industry generates an average of £2.3 billion towards the UK GDP. Quite something, right? Seemingly, by heading down to your local casino or joining an online casino you are contributing to your local economy. Want to know how casinos affect the economy? Well, we’ve compiled some of the facts for you.
The Advancement of Online Casinos
Today, you will find hundreds of excellent new online casinos in the UK market. Many casino brands have online versions of their sites thanks to advancements in technology, and the need to cater for diverse markets. Online casinos are not only cheaper for the operator, but also more convenient for the user. According to a study by the Guardian, online gambling is responsible for 5.3 billion Euros of the total GGY, which equates to 37.1% of the pie. Huge, right? It’s a no brainer, that it’s the reason most of the online casinos have invested heavily in their sites. For instance, if you land on a great site, you will realize that these days, a live casino experience is no short of the physical experience. The easy navigation, comprehensive support, and bonuses in these sites have contributed to the immense growth of online casinos.
- UK casinos with international audiences direct their UK players to the UK version of their site. This is to ensure that the UK economy benefits from the Gross Gaming Yield.
Issues of taxation usually raise eyebrows, especially among industry players. However, the idea of taxation is always meant to protect and improve the gambling experience for both players and the general public. The 2014 gambling act enacted has impacted and has the potential to impact the future massively. One of the biggest changes in the bill is the introduction of the 15% tax on all profits generated. If you didn’t know, casinos are taxed. In fact, the gambling industry in the UK pays more tax than it generates profit. This doesn’t mean the industry is not profitable. The gambling industry generates £600 million and contributes £2.3 billion in taxes to the UK economy. These taxes are used to fund different government programs. Well, we can agree from these statistics that casinos are one of the shakers and driving force of the UK economy.
Business Conduct, Rules, and Regulations
Another aspect related to taxations is the rules and regulations driving the gambling industry. Ideally, when we talk about new casinos, we are referring to how old casinos and the now cropping online casinos need to operate. The 2014 gambling bill in some way revolutionized how gambling is conducted. It provided a chance for the gambling commission to take the industry in a new direction with the goal being transparency and good practices. If you think about it, customers will always want to trade on a secure platform.
Here is a Breakdown of How the Local Economy is Positively Impacted by Casinos:
- First, the commission made it a requirement for online casinos to improve their services by heightening their security measures, improve their data, have credible payment plans, and provide audits of their software.
- These changes in regulations and the adoption of these measures by online casinos has increased the number of players signing into the online platforms. This is because players feel safer and willing to spend their money to make money.
- As a result, the local economy has benefited because of increased revenue coming from the new and many new signups.
Employment Opportunities Created
Casinos create employment whether they are physical or online. Did you know that the gambling industry is responsible for employing over 100,000 workers? From software developers to customer service, the industry arguably provides employment opportunities for thousands of people. It is simple, casinos generally require labor to operate. In most cases, the labor comes from the local area, meaning cases of unemployment in the area are solved. When people are employed, it means their livelihood is improved as well as the economic growth of the locality because of the taxes collected.
Another great way that casinos have revamped their image and become a stalwart of the economy is through charitable giving. Did you know more than 26 billion Euros is donated to charitable causes through the national lottery? Isn’t that a good contribution to the economy? It is if you think of the great impact it fosters locally.
The gambling industry has generally suffered from bad press. Cries of illegality, immorality, and warnings of addiction have marred the sector for years. But if you paused and look at gambling objectively as discussed above, you will realize that the industry is not only a major booster of the economy but has also employed thousands of people and raised billions of pounds for charity.