Gambling has long been the economy’s engine for many places on the planet where it is legal. You don’t need to look far for examples: Monaco, Macau, and Las Vegas are well-known – you will get tired of listing them. And with the development of online gambling, the influence of this culture on the financial performance of countries has expanded worldwide. Online casinos lure players with various games, new exciting features, and bonuses that cannot be found in offline casinos, for example, El Royale no deposit bonus that gives you a chance to win money without risking putting your own!
So let’s see why, in combination with reasonable legislation, online casinos have a positive impact on society and the economy, and most importantly, how can gambling affect the development of the financial sector?
Myths About Online Casinos
First of all, before discussing the positive financial aspect of online gambling influence, it is time to bust the myths that bother thousands of players worldwide, even today.
- Personal and payment data is not protected – any trustworthy online casino is interested in protecting its users from scams. Operators protect personal information by securely encrypting data and never sharing information with third parties – reputation is more important than dubious profit. Unfortunately, contacts are usually transferred for advertising by dishonest clubs whose reputations leave much to be desired.
- Online casino is a direct path to gambling addiction – it is a myth, and most gamblers never get addicted. If that were the case, then 80% of people who have tried gambling would be addicted. It should be noted that official gambling establishments follow the principles of responsible gambling. At the same time, the player must understand that slot machines and other casino games are entertainment, not a way to earn money.
- Casinos do not pay out winnings – this opinion remained with those players who played in dubious one-day casinos. After all, a verified casino must pay money – its reputation and the availability of a license depend on it. Illegal casinos seek to delay payments under any pretext – such actions are not long in coming, so you can always find negative reviews on the Internet from real players. Don’t waste your time on these casinos. But if you play with trustworthy professionals, you can be sure that the winnings will be on your card.
Yes, the last myth becomes a concern of most players, but don’t forget that a respectable casino has to perform according to the license requirements, which means an established minimum of winning chances.
So, what is the country’s financial sector benefit if these casinos always pay back? Let’s find out below.
Influence on Financial Market Worldwide
Now, let’s take a closer look at the financial data of several counties where online casinos have gained incredible popularity over the last few years.
While some of these markets represent a state monopoly, these online gambling venues are still one of the most interesting for potential investors in the online gambling sector. Among the main advantages are high Internet connection rates, impressive incomes, and local residents’ love for gambling as entertainment.
Annual growth of 28.65% for Q1 2021 speaks to Denmark’s excellent state of the online casino sector. GGR (gross gaming revenue) in 2020 was about €330 million; this exceeded the figures for online betting, which reached €308 million in the same year.
The online gambling market in Denmark is fully regulated. Operators can obtain a local license to organize casinos and betting, but lotteries are a state monopoly managed by Danske Lotteri Spil.
The number of available licenses in the country is not limited, permits are valid for five years, but it is possible to purchase an annual license in case of limited budget or coverage (about €135,000 and €670,000 respectively, with a payback of less than 20%).
The application fee for an individual casino or betting license is almost €40,000, while the combined license costs €55,000. An annual license with revenue and turnover restrictions costs €7,800. In addition, operators must pay a yearly fee that depends on their GGR, ranging from €7,800 for GGRs under €670,000 to €700,000 for GGRs over €67 million.
There is a tax of 28% of the monthly GGR for all types of gambling.
The online gambling market in Sweden experienced strong growth in 2020, offsetting losses from land-based projects in the first year of the Covid-19 pandemic. As a result, the total gambling income in the country that year was about €2.44 million.
Online gambling was officially introduced in Sweden in 2019 (Gambling Act and Gambling Ordinance), allowing operators to purchase a casino or betting license. In addition, unlike most other countries, Sweden allows bookmakers to accept bets on any event, including virtual and non-sports events.
There are no limits on the number of available licenses, but they are only valid for five years. Both gambling and betting licenses cost almost €40,000; operators must also pay an annual fee that depends on turnover (between €3,000 and €50,000). The tax is up to 18% of the monthly GGR received from the rates of Swedish residents.
The Åland Islands, an autonomous archipelago on the southern coast of Finland, has a local monopoly operator, Ålands Penningautomatförening (Paf).
Paf operates land-based and online projects on the islands, generating approximately €20 million in net income per year. Profits are distributed to local non-profit organizations supporting the islands’ community. Paf is a leading contributor to the Mindful Gaming discussion and was the first operator to offer a limit on the losses of its players.
These are only a few examples of how online gambling contributes to the financial sector of the county of their origin, thus, to the world economy in general. Using both ways – charity donations to non-profit organizations and implementing gambling taxes- money you spend in online casinos gets back to you and other people’s needs.
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