Online Gambling and Its Economic Effects

    According to recent reports on the gaming sector, the industry has registered a growth of 5.9%, which is equivalent to roughly US$565 billion in revenue worldwide

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    Long before the word “online” existed, the casino industry was the source of a relatively large amount of revenue for the world’s governments. Now that people have the option to play from the comfort of their home at sites like, the increase in revenue flowing into the economy from the gaming industry has been considerable.

    We don’t often think about how the little things we enjoy impact the world around us, but they do! Let’s look at the effects that the online gaming industry has on the economy.

    USA- Loss of revenue from casinos for Native Americans

    In the US, many casinos are owned by Native Nations. Since Native American lands are separate from the rest of the US, the revenue from these casinos goes directly back into the tribe’s economy. This is useful for some of the poorest and most marginalized communities in the US, specifically indigenous communities.

    These benefits go directly back to creating jobs for those living on Native American reservations. For example, the Cherokee Nation has earmarked more than three-quarters of its casino profits for a scheme to fund assistance to help their sons and daughters find meaningful and stable employment.

    Of course, online casinos will have to be run from a location on native land to come under the jurisdiction of the tribe. Many tribes are expanding in the online gaming industry. This is certainly a boom to the economy of the First Nations involved, but it detracts from the flow of money to the US economy in general.

    Europe – Bringing the money

    The European online gaming industry is currently worth around US$53 billion. Experts say the sector can expect a growth rate of about 11.5% each year until 2027, meaning the sector will be worth $100 billion by then.

    All of this income is taxable and therefore brings an incredible amount of money to the countries in question. Do not forget that people who win at online casinos also pay taxes on that amount, which increases the income stream even more. Given the improvement in technology and online gaming sites, as well as people’s increased desire to stay home rather than venture out in public to gamble, the growth of the industry is not expected to slow down any time soon.


    There are many fees and costs associated with the online gaming industry, wherever you are in the world. These include:

    • The payment of bonuses. A bonus is an amount that is offered to a new player in the form of credit or otherwise, to entice them to play with the casino in question. More players tempted to play means more revenue for the casino, which means more taxes to support the economy.
    • Software license fees. For an online casino, this is an unavoidable cost. Since no one knows how to do everything, casino operators will have to contract with providers that specialize in the type of software that runs the casino games and the website. These providers are taxed on their income, which in turn contributes to the economy.
    • Accommodation fees. The domain in which an online casino will work has a cost; server hosting as well. Of course, these service providers also contribute to the economy through taxes.
    • Taxes and license fees. The casinos themselves pay taxes on their income, of course. The economy is bolstered by the license fees that all online casinos must pay, which vary from country to country and state to state.

    There is much less risk in running an online casino than there is in a physical establishment. The setup costs are much lower as you won’t need a large staff or pay rent for a huge casino venue. A lower financial burden means casino operators will be less likely to go under when times are tough. Citizens going bankrupt or ending up in court or even jail because of unpaid costs is a drain on the economy rather than a boost to it.

    Although the average online casino staff is not huge, as we have mentioned, there is certainly some work to be done. Starting a new business, whether online or offline, means you are creating job opportunities in whatever country or state you live in. Naturally, citizens who have stable jobs and pay all their bills and taxes also contribute to the economy.

    One final word

    The online gaming industry has not yet reached its full potential. All signs point to the industry growing at a remarkable rate and for some time to come. This means more job creation, more taxes, more successful businesses and employees contributing to their respective economies, which of course contributes to the world economy. In general, the contribution of online gaming to the world economy is positive.

    Resonance Costa Rica

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