Online Gambling and its Economic Effects

Casino Economy

Long before the word “online” even existed, the casino sector was the source of a relatively large amount of revenue for the world’s governments. Now that people have the option of gambling in the comfort of their homes, the increase in revenue flowing into the economy from the gambling sector has been substantial. Whether you like table games, slots, or even live poker, the online casino sector will have something available to suit your tastes. If you don’t find what you are looking for in one casino, you can simply click over to another and keep looking.

Of course, gambling is lots of fun. Nothing is more thrilling than spending a few hours in front of the computer seeing if Lady Luck is on your side, testing your skills at card games, or trying your hand at the fruit machines. An evening of betting can mean an unexpected windfall or perhaps a lousy hand. This, of course, contributes to your own personal home economy but also to the economy of the world at large. We don’t often think about how the little things that we enjoy impact the world around us, but they do! According to recent reports on the gambling sector, the industry has reported a growth of 5.9%, which equals plus minus $565 billion in revenue worldwide. Let’s look at the effects that the online gambling industry has on the economy.

Economy Effect


USA- Loss of Revenue from Native American Casinos

In the USA, many casinos are owned by First Nations. Since Native American land is separate from the rest of the USA, the revenue from these casinos goes straight back into the tribe’s economy. This is very helpful to some of the poorest and most marginalized communities in the US, namely indigenous ones. These profits go straight back into job creation for those who live on Native American reservations. For example, the Cherokee Nation has put more than three-quarters of the profits from its casinos into a scheme to fund assistance in helping its sons and daughters gain meaningful and steady employment. Of course, online casinos will need to be run from a location on Native land for them to fall under the tribe’s jurisdiction. Many tribes are expanding into the online gaming industry. This is definitely a plus for the economy of the First Nations involved but takes away cash flow from the US economy overall.

Europe- Bringing in The Big Bucks

The European online gambling industry is currently worth about $53 billion. Experts say that the industry can expect to see a growth rate of approximately 11.5% every year until 2027, which means that by that time, the industry will be worth $100 billion. All of this revenue is taxable and, as such, brings an incredible amount of money into the countries in question. Do not forget that people who win in online casinos are taxed on that amount as well, increasing the revenue stream still further. Given the improvement of technology and online gambling sites, as well as people’s increased desire to stay home rather than venture out into public to gamble, the industry’s growth isn’t expected to slow down any time soon.




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

-Paying out bonuses. A bonus is an amount offered to a new player in credit or some other form, to entice them to play with the casino in question. More players tempted to gamble means more income for the casino which means more taxes to support the economy.

-Software licensing fees. For an online casino, this is an unavoidable cost. Since no one knows how to do everything, casino operators will need to hire providers who specialize in the kind of software that runs casino games and the website. These providers are taxed on their income which in turn contributes to the economy.

-Hosting fees. The domain that an online casino will operate on comes at a cost; server hosting does too. Of course, these service providers contribute to the economy through tax as well.

Taxes and Licensing Fees. 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 involved in operating an online casino than there is in running a physical establishment. Setup costs are much lower since you will not need a large workforce or to pay rent for a huge casino location. Less financial burden means that casino operators will have less chance of going under when times get tough. Citizens filing for bankruptcy or ending up in court or possibly even jail due to unpaid costs is a drain on the economy rather than a boost to it.

While the staff of an average online casino is not huge, as we mentioned, there are definitely a few jobs that need doing. Starting up a new enterprise, whether it be an online one or a physical one, means that you are creating job opportunities in whichever country or state you live in. Naturally, citizens having steady jobs and paying all of their bills and taxes contribute to the economy as well.



A Final Word

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

We hope that this article has been helpful and informative! All of the information in the article was correct at the time of writing, but keep your eye on the financial news in your country for updates as time goes by.


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